Tag: manufacturing dashboards

  • A New Way of Looking at Manufacturing Metrics

    A New Way of Looking at Manufacturing Metrics

    Modern Manufacturing Metrics

    Most experts agree. The metrics you use to manage your manufacturing operations need to matter, and they need to be actionable. We concur. For a detailed review of the operational metrics we recommend in a demand-driven manufacturing environment, refer to our Metrics for Action Guide.

    Conventional wisdom also says to keep the number of metrics you measure to a minimum. This advice is based on well-established research that shows that the human brain just can’t focus on more than five to seven things at a time. Trying to measure too many things at once has long been a recipe for never getting anything done.

    Besides, many manufacturers are still calculating metrics by hand (or spreadsheet) from information that is gathered manually, often with considerable effort. By the time they get the information they’re looking for, it’s already obsolete. Measuring more than a select handful of metrics may not be realistic.

    But, maybe it’s time to take another look at the way we think about metrics in manufacturing.

    It’s time to let go of conventional wisdom.

    Today’s technologies have solved the problem of outdated data. Metrics can be calculated in real-time and refreshed almost instantly. Tools are even available to gather data from the most antiquated of ERP systems, standardize it, and combine it with data from the increasingly extensive sources enabling the Internet of Things (IoT) that exist in almost every manufacturing environment.

    Technology also gives you the power to create a set of role-specific metrics that are accessible through dashboards from any device. A plant floor manager can see the metrics that matter at the plant level in Peoria using a tablet, while the COO can see the metrics that matter across the entire operations using a smartphone while waiting for a flight in Singapore.

    Modern Manufacturing MetricsModern technology collects and analyzes data from multiple sources, providing real-time visibility to metrics you can quickly take action on to improve.

    Of course, technology hasn’t yet changed our ability to concentrate on more than half a dozen things at once. (Regardless of how much we may try.) However, with the right applications, we don’t need to.

    For example, plant floor managers no longer need to comb through every metric and compare it to acceptable norms or historical data to identify problem areas. Nor do they need to walk the plant floor hoping to spot possible problems, which savvy factory workers are often adept at covering up. With the right software, dashboards can be as sophisticated as a visual representation of the shop floor with color-coded indicators showing problem areas. The plant manager can measure metrics like queue turns at every single workstation in their domain, but they only need to pay attention to those workstations where queue turns are outside of the acceptable range.

    SyncView plant visualization

    Plant level view with indicators showing the status of key metrics at each workstation.

    We’re not suggesting you go wild with managing metrics. Remember, they still need to matter, and in demand-driven manufacturing, there are generally fewer metrics that do. However, we are saying that if there is a metric that matters to you, why be held back by conventional wisdom from the 20th century?

    To learn more about how technology can help you manage – and visualize – the metrics that matter, join us online for our on-demand webinar Visualizing Metrics in the Factory of the Future.

     

     

  • The Magic Bullet for Real-Time Supply Chain Collaboration? Cloud Visibility.

    The Magic Bullet for Real-Time Supply Chain Collaboration? Cloud Visibility.

    Supply chain visiblity and transparencyJessica Twentyman reported in the Financial Times, that for many manufacturers, supply chain collaboration is stuck in the dark ages. When it comes to ordering materials and components, managing inventory levels, or organizing the delivery of finished goods to customers, companies are forced continually to chase business partners – mostly suppliers, logistics companies, and retailers – via a messy stream of emails, phone calls, and even faxes. Worse still, much of the data that could give manufacturers a complete, end-to-end view of their supply chain already resides within the systems of these partners; as much as 80 percent of it, according to some industry estimates.

    Supply Chain Market reported the closest any manufacturer can get to the magic bullet of efficiency (collaboration) is through greater supply chain visibility. Supply chain visibility means all partners get access to – and share data – in real-time. Visibility to all orders allows suppliers to proactively respond to demand signals. Poor visibility often results in parts shortages. Frustrated manufacturers report having no idea they were down to the last box of parts. The result is expensive; using faster shipping methods to get the part back on the shop floor. A real-time view of parts on hand allows a supply chain manager to take action before there is a stock out, eliminating expedited fees.

    A single – visible – version of the truthsupply chain visibility technology

    Modern Demand-Driven Manufacturers are leveraging real-time Cloud-based visualization and collaboration systems to view data from multiple, disparate sources while keeping the data in its original, host environment. The value of these visualization systems is in their inherent flexibility. Once the data connections are made, they can be accessed and used (with appropriate permissions) at any point along the end-to-end supply chain spectrum. There is no limit to the data sources that can be connected or how the data can be sliced and diced and made visual to accommodate the different layers and levels of the manufacturing enterprise.

    The result is a single – visible – version of the truth that enables a more compliant, consistent, Lean, and waste free supply chain. Visualizations can be created or configured by and for the individual user, work center, plant or multi-plant/enterprise, supplier, or customer level. Order, replenishment status, inventory levels, machine maintenance, system alerts, KPIs, logistics tracking, and more can be made accessible to the appropriate parties anytime, anywhere, providing a single source for real-time information.

    Data on Demand: Examples of value across supply chain layers

    • Customers gain visibility into order receipt, status, and delivery data. In ETO environments, visibility tools can provide further collaboration capabilities on product specifications and requirements.
    • Suppliers receive real-time demand signals with the ability to exchange purchase order and projected delivery information online. Supply Chain Managers can collectively visualize and track the performance of all suppliers against their service level agreements (SLAs).
    • Individual users have easy access to information they can act on to analyze issues and improve performance. Customer Service representatives can follow the status of their customer’s order and confirm delivery details; Operators have a clear view of priorities and an understanding of what to work on next; Quality Analysts are immediately alerted to issues and can quickly trace the source of the problem.
    • Work Centers can monitor all the machines in their area through a single screen to collectively determine overall equipment effectiveness (OEE) and gain insight for preventative or prescriptive maintenance.supply chain data on demand
    • Individual Plants can visualize real-time end-to-end production flow and the status of safety, compliance, and key performance indicators (KPI) at any level in the facility.
    • Regional Plant Networks can connect to Warehouse/Distribution Centers to better manage excess inventory and monitor status from Third Party Logistics (3PL) providers.
    • Multi-National Enterprises can connect to global data sources – including Supplier networks and Contract Manufacturers – to assess individual plant performance and collectively view and track logistics flow throughout their enterprise.

    Newer Cloud technologies are more intuitive with drag-and-drop functions and natural language queries. IT is no longer saddled with pulling data and generating reports. Through self-service tools, even non-techies can perform their own analyses and create their own dashboards and visualizations.

    The technology is available and the impact of such can be far-reaching. The investment quite often produces an immediate or near-term return just in avoiding costs associated with downtime, waste and expediting.

    Standardizing data formats – the key to universal, real-time accessibility.

    With the multitude of data sources feeding the supply chain, the visibility value is in the ability to “mash up” or bring together data from these disparate sources to tell a complete story. The strategy for doing such is standardizing – or normalizing – data. And while this is not a new concept, today there is a more efficient and cost-effective approach. Through the Cloud, data is accessed from its host environment and aggregated, analyzed, and shared by standardizing the data and making it accessible in real-time through technology tool sets like SignalR. These lighter weight, highly flexible and scalable web-enabled technologies are rapidly replacing costly hardware devices traditionally used for data standardization.

    Ultimately, visibility techinvesting in supply chain technologynologies should be measured by their ability to provide the right data to the right people at the right time.  The true value proposition is in having the right information to take immediate action – the decision-driving data that will make a difference in how your supply chain is performing today.

     

    More information on this topic:

    White paper: End-to-End Supply Chain Visibility Technology is Here

    Video case study: How Orbital ATK is Leveraging the IIoT and Visual Factory Technology to Drive Continuous Improvements

    Video: SyncView Real-time Manufacturing Visualization System – 4 minute overview

     

    Supply Chain Brief Best Article

  • Supply Chain Visibility and the Bottom-line

    Supply Chain Visibility and the Bottom-line

    Visibility MatteSupply chain visibilityrs.

    Rick Morris, a Certified Supply Chain Professional wrote in Supply House Times that while improving fill rates, improved forecast accuracy also lowers inventory levels measured in days of sales; and simultaneously, improved forecast accuracy improves fill rates and lowers inventory. He suggested this translates into increased profitability. When analysts have studied companies that were best-in-class in demand forecasting, they found these companies averaged (according to Advanced Market Research) 15% less inventory; 17% higher perfect order fulfillment; 35% shorter cash-to-cash cycle times; and 1/10 the stock outs of their peers. In addition, every 3% increase in forecast accuracy increased profit margin by 2%. These improvements in inventory efficiencies then translate into improved financial metrics, including 10% improvement in earnings per share; 5% increase in return on assets; and a 2.5% gain in profits.

    Reducing the Risk of Supply Chain Disruptions

    Sunil Chopra and ManMohan S. Sodhi, reported for the MIT Sloan Management Review, that supply chain executives complain there have been major supply chain disruptions, highlighting vulnerabilities for individual companies and for entire industries globally. Today’s managers know that they need to protect their supply chains from serious and costly disruptions, but the most obvious solutions — increasing inventory, adding capacity at different locations and having multiple suppliers — undermine efforts to improve supply chain cost efficiency. Surveys have shown that while managers appreciate the impact of supply chain disruptions, they have done very little to prevent such incidents or mitigate their impacts. This is because solutions to reduce risk mean little unless they are weighed against supply chain cost efficiency. After all, financial performance is what pays the bills.Supply Chain Visibility definition

    Supply Chain Market reported the closest any manufacturer can get to the magic bullet is supply chain visibility. Supply chain visibility is needed to achieve a manufacturers’ goal of saving money quickly and inexpensively. Supply chain visibility means all partners get access to data in real-time. Visibility to all orders allows suppliers to proactively respond to abnormal fluctuations in demand. Poor visibility often results in parts shortages. Frustrated manufacturers report having no idea they were down to the last box of parts. The result is expensive, requiring faster shipping methods to get the part back on the shop floor. A real-time view of parts on hand allows a supply chain manager to take-action before there is a stock out, eliminating expedited fees.

    eKanban software provides an effective quick win.  An eKanban system can mitigate disruptions associated with stock outs through automated inventory replenishment and visibility into real-time demand signals, supplier response and more. Current manufacturing Kanban technologies have evolved to automate and simplify even the most complex supply chains.

    In addition to eKanban, many of today’s manufacturers are taking advantage of all the digitization created to enable the Internet of Things and elevating visibility within and beyond their four walls – and across multi-enterprise environments. So, what steps are manufacturers taking toward this end, and more importantly, what is the investment?

    The answer depends upon your starting point.

    In a recent research report, Gartner defines their five stages of maturity in supply chain visibility to include: Asset; functional; supply chain; value chain; and ecosystem visibility. (Gartner, Define the Five Stages of Supply Chain Visibility Maturity, 2016.) As an organization moves toward greater maturity, the number of disparate data sources to be aggregated and made visible multiplies. As such, web-based and SaaS priced visual factory information systems (VFIS) are gaining favor based on their flexible technology architecture, affordability and ability to easily scale – manufacturers can use the same system to visualize information as they mature through the stages.  And because the VFIS connects to any data source (legacy systems, ERP, MES, PLM, WMS, machines, etc.), manufacturers wouldn’t necessarily need to invest in any other systems to get started on impacting the bottom line through greater supply chain visibility.

    We will spend more time exploring how manufacturers are creating greater supply chain visibility and empowering people with relevant, real-time information, in future posts. In the meantime, if you have any examples you would like to share, please leave a comment!

     

    Additional resources:

    Video: How Orbital ATK is Leveraging the IIoT and Visual Factory Technology to Drive Continuous Improvements

    Video: Visual Factory Software Overview

    White Paper: Gaining Control: Exploring Push v. Pull Manufacturing [using Kanban systems]

     

     

    Supply Chain Brief Best Article

  • Made for Manufacturers

    manufacturing software

    By Sarah Balogh

    Made for Manufacturers

    A common statement I hear from customers is that they are working with technology and software that doesn’t provide the functionality they need as manufacturers.  They are told that certain enterprise software packages “can do everything” they need to plan, schedule, and run their factories.  But months after implementation they feel a sense of disenchantment.  Why is this?

    Software Made for Manufacturing

    What these customers have in common is that they bought software that can be used for manufacturing.  But what they really need is manufacturing software.  True software built for manufacturers provides capabilities and value unique to companies in the business of planning and producing goods to bring to market.  Manufacturing software is created with the industry and business of manufacturing in mind.  It is built with the intention of providing an organization the tools it needs to gain control of their production floor, deliver quality goods on time, and gain visibility into operations and the supply chain beyond the four walls of the plant.

    The good news is even if you didn’t purchase manufacturing software initially, you always have the opportunity to start the journey of enabling the factory of the future, exactly from where you are today.  How?  By selecting manufacturing software that can integrate and play nicely with your existing systems while providing the specific manufacturing functionality you need.

    Connect to Anything and Everything

    Manufacturing enterprises today have one thing in common – they are all unique. They have nothing in common with other manufacturers’ architecture and solution portfolios.  Each organization tends to be a mixed collection of legacy, new enterprise, and point solutions (with the ability to access data within and across these solutions just as varied for each company).  Therefore, one of the elements that good manufacturing software should include is the ability to connect to and take advantage of all of this data, plus any future data sources.  This makes it possible for any company, wherever they are in their continuous improvement or demand-driven journey, to start harnessing the power of their own information to drive decisions from real data.Data Silos

    To start driving value for your manufacturing business, I recommend using a factory visualization solution that has the ability to connect to and use this existing data for analysis, visibility and to serve as the much sought after single version of the truth.  Suddenly data across the enterprise is liberated to serve your organization as usable and actionable information.  When your different technologies are all connected to a visual factory system, you break down the data silos. In combining these data sources, you become empowered with information, gaining new and more comprehensive insight into your environment and business.

    At this year’s IndustryWeek Manufacturing & Technology Conference, Orbital ATK shared how they connected their environment to enable the Internet of Things and how they are using visual factory technology as a communications tool and a means to respond to issues in real time. (YouTube video.)

    Next time we will talk more about what a good factory visualization tool should be able to do, and why those capabilities are necessary.  In the meantime, please leave a comment!

  • If it’s Not Real Time Data, It’s Old Data

    If it’s Not Real Time Data, It’s Old Data

    visual factoryWe have so much real-time data around us in our daily routines. A barista starts to prepare my order the moment that I purchase my daily coffee. I instantly know how close I am to the speed limit thanks to my car’s speedometer. And I see an accurate count down of the number of minutes before my computer turns off due to a drained battery. Since all of this real-time data is available in our day-to-day lives, shouldn’t we expect the same for data we use in our manufacturing organizations?

    Countless times I have walked into customer sites on Day 1 and seen old data everywhere. I have seen four walls of a conference room covered with 8 ½” by 11” printed reports, most of which were multiple weeks old. Or users that explain that they perform analysis based off of desktop spreadsheet files, with manual data loads. In each of these cases, people are operating off of old data, even if it was updated just a few hours ago. If my speedometer had that same delay, I would have a lot more speeding tickets!

    Old Data is Just… Old Data

    Manufacturers today are asking themselves how they can do better and be better. They realize that to be competitive, they should look inside the factory first and explore their own processes to find areas for improvement. If they analyze their data to see what it shows about their operations, they tend think that any data to go off of is better than no data, right? Not always, I say.

    Based on how fast your environment changes, it could be detrimental to make decisions off of old data. Since the pace of business has increased for manufacturers, thanks to both technology and complexity, so too should the pace at which data is collected and made available to make informed decisions. For example, consider everything that can happen in the span of an hour:

    • Purchasing finds out that a truck shipment of raw materials will be delayed two days due to weather.
    • A new customer puts in a rush online order double the size of previous months.
    • Maintenance begins fixing a problem on a constraint resource that is estimated to take at least a couple of hours.

    Wouldn’t your organization want to know about all of these situations as soon as it could? Certainly. Keep in mind, however, that as more and more data is available, you’ll need to discern if, when, and how you take action. That is, you’ll need to separate knowing that events occur versus reacting to them right away. Each event could immediately impact your organization’s priorities, but you also don’t want to be jumpy and let every event disrupt your overall process. The important thing is that you are aware and that you have the right information at hand to make necessary decisions.

    Better yet, your systems can also be aware of this same event data and alert you only to the issues that require your intervention. Technology solutions for manufacturers should be able to take real-time data, assess it against other conditions and values, and then notify you to respond only to the events that need your attention. This is the nature of demand-driven manufacturing – since the focus is on overall production flow, you only need to address those issues that disrupt flow. The rest is probably just normal “noise” – or what becomes a normal day for a manufacturer.

    Manual Reporting Makes Data Stale

    So how did we get to the point where so many manufacturers are not using real-time information? Thankfully, manufacturing technology is catching up to provide all of the information and analytics that companies seek in an automated, real-time manner. Organizations have always had the desire for information and reports, but they’ve commonly only had manual methods as options. Consider the volume of reporting that a typical manufacturing company does on a recurring basis – that’s a lot of manual reporting happening based on non-real time data. Think of the time drain that both the manual data collection and report running put on a company. If it takes an analyst only two hours to run a report, that means they are already using information that’s at least two hours old.

    If you run reports on yesterday’s manually collected data, then you will only have information about yesterday. Further, we will still need a clear, straightforward way to display that information to users. I know my car’s current speed based on the easy-to-read dashboard, for example.  If we demand that our organizations collect real-time data – and we have a tool like a visual factory system to display this information – then we have a powerful platform from which to understand what is happening today and what to prepare for tomorrow within operations. In the next blog, we will pick up on this topic of how to use historical data in a meaningful way, but in the meantime, send me your comments and questions.

  • Visual Beats Verbal

    Visual Beats Verbal

    If a picture is worth a thousand words, then visualizing a factory floor says a lot for an organization. The ability to translate any environment into a visual representation is incredibly empowering and is a strong step toward evolving a manufacturer into a connected, cutting edge company. I have had the privilege of working with organizations in their journey to becoming a ‘visual factory.’ What I have learned is that the drive to become a visual factory is founded less on a technology revolution, but more a basis to communicate with users in more natural ways.

    Dominant Visual Learners

    I believe the manufacturing evolution toward visual factory information systems is an example of technology catching up with basic human behavior. At 65%, visual learners make up most of the population. However, you wouldn’t think this if you consider all of the written reports, emails and spreadsheets that the average company outputs. Often, this is in absence of a tool that allows users to create the same information visually. When the result is verbose and hard-to-absorb written communication, it’s no surprise that people have difficulty retaining information. When the objective is to have all people within the system on the same page and informed, it’s best to communicate according to their preferred learning method.

    Pictures are a Universal Language

    A significant advantage of a visual information system is its universal nature and language independence. Visual factory systems use elements such as diagrams, charts, and colored indicators to communicate status with very few words. In my experience, organizations have a wide range of language and literacy levels. User adoption increases based on the tool’s ease of use, but also by having all users comfortable with using the information that the system presents.  Additionally, removing written components also makes the information more understandable across languages.   This is an important feature for global enterprises.

    Allow Antidotes to be Created

    In a slightly contradictory way, the other advantage of a factory visualization system is that it doesn’t spell out everything for a user. In my experience, writing out what people should be learning doesn’t always lead to higher information retention. It’s good for them to create an antidote in their mind about what they see. Naturally, when someone looks at a simple, clear diagram or picture, they take a brief moment to absorb the information and Visual Learnercome to some sort of conclusion. They are taking in the visual elements and making a judgement or asking a question based on what they see. If they have a question, ideally they interact with screen components and drill into the visualizations to learn more. Creating the antidote of what they observe leads to more user investment and sense of ownership with the tool and information. Sharing this antidote with other people also increases understanding. This is key to making a visual factory system the primary tool in a continuous improvement journey. For example, when an employee sees a downward trend in on-time delivery, perhaps they drill through to escalated maintenance information related to a resource. The maintenance information may display time series data to the employee, showing increased downtime every day around a consistent period. The employee could come to a conclusion that to improve and prevent this downtime – and avoid compromising deliveries – planned maintenance could occur weekly to make sure the utilized resource is running at its maximum available capacity.

    While manufacturing companies have been creating reports for many years, only now do they have options when it comes to visual factory applications. Being able to reach users at every level in the organization and clearly communicate status is the dream for any manufacturer. The benefits of a visual factory are far superior to the verbal and written alternatives. Next time, I will explore the potential and power behind real-time visual factory metrics. Until then, feel free to send me your questions or experiences on anything visual factory related.

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