Article | December 13, 2021
Lean manufacturing principles enable manufacturing businesses to achieve spectacular results and overhaul their conventional operations. A wide range of industries have adopted lean manufacturing because of its enormous advantages, and they have seen excellent results as a result.
The 2010 Compensation Data Manufacturing survey indicated that 69.7% of manufacturing organizations employ lean manufacturing principles. By consuming this data, we can understand how far organizations have progressed toward incorporating lean principles into their operations.
“Many companies are not willing to change or think they are done once they make a change. But the truth is technology, consumer demands; the way we work, human needs, and much more are constantly changing.”
–Michael Walton, Director, Manufacturing Industry Executive at Microsoft
Let's look at some examples of lean manufacturing from some well-known companies. These leading-edge examples of lean manufacturing will shed light on how lean principles positively affect.
Leading Companies Using Lean Manufacturing Effectively
Successful manufacturing businesses like Toyota, Nike, and Caterpillar are currently employing lean manufacturing ideas in their production processes. In addition, Intel, Parker Hannifin, and John Deere embrace these techniques. From them, we've described three different organizations in various sectors that are successfully adopting lean manufacturing.
John Deere has also implemented a lean manufacturing strategy. As a result, many of their quality control procedures are automated, which means that more components can be checked for flaws in less time. This means that more supply can be released each day, and the product can be supplied at a lower price to the consumer.
Additionally, these controls monitor the manufacturing process for each component of their products, ensuring that they never manufacture more than is required and waste essential materials in the process.
Intel, known for its computer processors, has used lean manufacturing techniques to provide a higher quality product for an industry that requires zero defects. In the past, it took more than three months to get a microprocessor to the manufacturer, but this principle has helped shorten that time to less than ten days.
Intel rapidly learned that creating more but worse quality was not the way to raise revenues and increase consumer satisfaction with its products, which were extremely precise and technical. Instead, both parties gain from quality control and waste reduction initiatives. This is even true in the tech industry, where goods are constantly changed and upgraded.
Toyota, the world's largest automaker, was the first to implement lean manufacturing in its manufacturing operations. But, even more importantly, they've learned how to limit products that don't match customer expectations by eliminating waste. To achieve these goals, Toyota employs two essential procedures.
The first is a method known as Jidoka, which loosely translates as "automation with the assistance of humans." This implies that, although some of the work is automated, humans always ensure that the result is of the highest quality.
When something goes wrong, the machines have built-in programs that allow them to shut themselves down. Known as the Just In Time (JIT) model, this is the second stage. Once the last part of a process has been finished, the next phase can begin. No unnecessary work will be done if there is a problem with the assembly line. This lean manufacturing technique has inspired thousands of other businesses.
Lean manufacturing principles and their execution require discipline and patience to get the results out of them. When we see the successful lean manufacturing examples, it is not a fraction of a second success. They have devoted their time, energy, and efforts to modifying every single operational process in order to become a part of lean manufacturing. Lean manufacturing is not a method; it is a way of life that transforms your business practices and takes your firm to a new level of operations. Gain insights from renowned organizations' lean manufacturing success stories to help you become a part of the lean companies of 2022.
What is the effect of lean manufacturing?
Lean is a performance-based, continuous-improvement strategy that removes waste and unnecessary processes from organizational operations. As a result, your company becomes more focused on the results.
Is it possible for lean manufacturing to fail?
It is conceivable in some circumstances, such as failing to focus on a single system implementation or implementing too many system changes at once and failing to have a sound follow-up system to check that everything is working effectively.
Why do certain businesses struggle with lean manufacturing?
Most businesses fail to see that lean is a management philosophy, not a set of tools. As a result, most corporate leaders either don't understand or lack the patience and control to implement lean manufacturing.
"name": "What is the effect of lean manufacturing?",
"text": "Lean is a performance-based, continuous-improvement strategy that removes waste and unnecessary processes from organizational operations. As a result, your company becomes more focused on the results."
"name": "Is it possible for lean manufacturing to fail?",
"text": "It is conceivable in some circumstances, such as failing to focus on a single system implementation or implementing too many system changes at once and failing to have a sound follow-up system to check that everything is working effectively."
"name": "Why do certain businesses struggle with lean manufacturing?",
"text": "Most businesses fail to see that lean is a management philosophy, not a set of tools. As a result, most corporate leaders either don't understand or lack the patience and control to implement lean manufacturing."
Article | April 1, 2021
April 12 -15 ProMatDX, the largest material handling event, will take place virtually. It will feature dozens of AGV vendors. Sadly, some of these highly innovating products still need to be plugged-in to capture power. No more.
Wiferion in process charging eliminates the plug-in charging making AGVs truly autonomous. In process charging eliminates the waste of AGV downtime – the fleet is always working AND charging. In process charging is safe ensuring the OSHA, ergonomics, and danger to workers significantly reduced. In process charging is cost-efficient because full vehicle deployment means a reduced fleet count ensuring a rapid ROI.
For OEMs of AGVs and industrial trucks implementing inductive charging technology solves the wear and tear issues caused by conventional charging methods as well as making vehicles fully autonomous. For end-users of AGVs and industrial trucks, inductive charging in combination with lithium batteries can improve fleet availability by more than 30%.
Whether driverless transport systems (AGVs), electric forklifts, or mobile robots (AMRs), the efficient use of industrial trucks is a decisive factor for competitiveness during ever- increasing cost pressures. The energy systems are being scrutinized and lithium-ion batteries are the preferred technology. The advantages versus lead-acid batteries (including the ability to recharge faster and more often) are obvious. Until now the full potential of storage technology has not been fully realized.
Article | December 21, 2021
When it comes to developing a budget for the following financial year of your manufacturing business, many operations managers start with direct labor and material expenditures. But, what about manufacturing overhead costs?
Manufacturing overhead is any expense not directly tied to a factory's production. Therefore, the indirect costs in manufacturing overhead can also be called factory overhead or production overhead.
Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower-cost goods and services, and causes economic expansion that reduces unemployment and increases productivity and job creation.
– Larry Elder
So, this article focuses on some highly effective overhead cost reduction methods that would help you build a healthy budget for the following year.
Manufacturing Overhead Costs: What Is Included?
Everything or everyone within the factory that isn't actively producing items should be considered overhead.
The following are some of the variables that are considered overhead costs:
Depreciation of equipment and productionfacilities
Taxes, insurance, and utilities
Supervisors, maintenance, quality control, and other on-site personnel who aren't producing signs
Indirect supply from light bulbs to toilet paper is also included in the overhead cost.
Manufacturing Overhead Costs: What Is Excluded?
Everything or everyone within or outside the factory that is actively producing items should be excluded from the overhead costs.
Factory overhead does not include the following:
Employee costs for those making the goods daily
External administrative overhead, such as a satellite office or human resources
Costs associated with C-suite employees
Expenses associated with sales and marketing - include pay, travel, and advertising
How to Calculate Overhead Costs in Manufacturing
To know the manufacturing overhead requires calculating the manufacturing overhead rate. The formula to calculate the manufacturing overhead rate i.e. MOR is basic yet vital.
To begin, determine your overall manufacturing overhead expenses. Then, add up all the monthly indirect expenditures that keep manufacturing running smoothly.
Then you can calculate the Manufacturing Overhead Rate (MOR). This statistic shows you your monthly overhead costs as a percentage.
To find this value, divide Total Manufacturing Overhead Cost (TMOC) by Total Monthly Sales (TMS) and multiply it by 100. The final formula will be:
Assume your manufacturing overhead expensesare $50,000 and your monthly sales are $300,000. You get.167 when you divide $50,000 by $300,000. Then increase that by 100 to get your monthly overhead rate of 16.7%.
This means your monthly overhead expenditures will be 16.7% of your monthly income. Being able to forecast and develop better solutions to decrease production overhead.
Five Ways to Reduce Manufacturing Overhead Costs
A variety of strategies may be used by manufacturing organizations to reduce their overhead costs. Here is a summary of some of the most important methods for reducing your manufacturing overhead costs.
Value Stream Mapping – A Production Plant Process Layout
A value stream map depicts the entire manufacturing process of your plant. Everything from raw material purchase through client delivery is detailed here. The value stream map provides you with a complete picture of the profit-making process. This overhead cost-cuttingmethod is listed first for a reason because every effort to reduce manufacturing overhead costsstarts with a value stream map.
Lean manufacturingis also one of the techniques of eliminating unnecessary time, staff, and work that is not necessary for profit and has gained undue favor in the manufacturing process. You must first create a value stream map of the whole manufacturing process for this technique to work. Once the lean manufacturing precept is established, the following strategies for decreasingmanufacturing overhead expenses can be examined.
Do Not Forget Your Back Office Management
Before focusing on factory floor cost reduction techniques, remember that your back offices, where payment processing and customer contacts occur, may also be simplified and increase profitability. Fortunately, automation can achieve this profitability at a cheap cost.
Manufacturers increasingly use robotic process automation (RPA) to sell directly to customers rather than rely on complex supply networks. This automation eliminates costly human mistakes in data input and payment processing by automatically filling forms with consumer data. Moreover, the time saved from manual data input (and rectifying inevitable human errors) equates to decreased labor expenses and downtime.
Automating Your Manufacturing Plant
For a long time, manufacturers saw factory automation as a game-changer. As a result, several plant owners make radical changes in their operations using cutting-edge technologydespite knowing it realistically. Over-investing in technologies unfamiliar to present industrial personnel might be deemed a technology blunder. Investing in new technology that doesn't generate value or is too hard for current staff to use might be a mistake.
It's usually best to start small when implementing newtechnology in manufacturing. Using collaborative robots in production is one way to get started with automation. They are inexpensive, need little software and hardware, and may help employees with mundane, repeated chores that gobble up bandwidth. It is a low-cost entry point into automation that saves labor expenses and opens the door for further automation investments when opportunities are available.
Reuse Other Factory Equipment and Supplies
Check with other factories to see if they have any unused equipment or supplies that may be "redeployed" to your manufacturing plant. Redeployment would save you time and money by eliminating the need to look for and install new equipment while lowering your overhead costs.
Outsourcing a fully equipped factory, equipment, or even staff can also assist in lowering overhead costssince you will only pay for what you utilize. As such, it is a viable method to incorporate into your production process.
Employ an In-house Maintenance Expert
An in-house repair technician can service your equipment for routine inspections, preventive maintenance, and minor repairs. This hiring decision might save money on unforeseen repair expenses or work fees for an outside repair provider. Having someone on-site who can do emergency repairs may save you money if your equipment breaks after business hours.
Manufacturing overhead costis an essential aspect of every manufacturing company's budget to consider. Smart manufacturingis intended to be productive, efficient, and cost-effective while effectively managing production expenditures. Calculating the manufacturing overheadcan provide you with a better understanding of your company's costs and how to minimize them. Depending on the conditions or geographical needs, each manufacturing plant's overhead expensesmay vary. As a result, identify your production overhead costsand concentrate on reducing and improving them.
What are manufacturing overheads?
Manufacturing overhead cost is a sum of all indirect expenses incurred during production. Manufacturing overhead expenses usually include depreciation of equipment, employee salaries, and power utilized to run the equipment.
What is a decent overhead percentage?
When a business is functioning successfully, an overhead ratio of less than 35 % is considered favorable.
How can I calculate the cost of manufacturing per unit?
The overall manufacturing cost per unit is determined by dividing the total production expenses by the total number of units produced for a particular time.
Article | December 16, 2021
Computer-aided manufacturing (CAM) is a technology that revolutionized the manufacturing business. Pierre Bézier, a Renault engineer, produced the world's first real 3D CAD/CAM application, UNISURF CAD. His game-changing program redefined the product design process and profoundly altered the design and manufacturing industries.
So, what is CAM in its most basic definition?
Computer-aided manufacturing (CAM) is the application of computer systems to the planning, control, and administration of manufacturing operations. This is accomplished by using either direct or indirect links between the computer and the manufacturing processes. In a nutshell, CAM provides greater manufacturing efficiency, accuracy, and consistency.
As technology takes over and enhances many of the processes we used to handle with manual labor, we are freed up to use our minds creatively, which leads to bigger and better leaps in innovation and productivity.”
– Matt Mong, VP Market Innovation and Project Business Evangelist at Adeaca
In light of the numerous advantages and uses of computer-aided manufacturing, manufacturers have opted to use it extensively. The future of computer-aided manufacturing is brightening due to the rapid and rising adoption of CAM.
According to Allied Market Research, the global computer-aided manufacturing market was worth $2,689 million in 2020 and is expected to reach $5,477 million by 2028, rising at an 8.4% compound annual growth rate between 2021 and 2028.
Despite all this, each new development has benefits and challenges of its own. In this article, we'll discuss the benefits of CAM, the challenges that come with it, and how to deal with them. Let's start with the advantages of computer-aided manufacturing.
Benefits of Computer Aided Manufacturing (CAM)
There are significant benefits of using computer-aided manufacturing (CAM). CAM typically provides the following benefits:
Increased component production speed
Maximizes the utilization of a wide variety of manufacturing equipment
Allows for the rapid and waste-free creation of prototypes
Assists in optimizing NC programs for maximum productivity during machining
Creates performance reports automatically
As part of the manufacturing process, it integrates multiple systems and procedures.
The advancement of CAD and CAM software provides visual representation and integration of modeling and testing applications.
Greater precision and consistency, with similar components and products
Less downtime due to computer-controlled devices
High superiority in following intricate patterns like circuit board tracks
Three Challenges in CAM and Their Solutions
We have focused on the three primary challenges and their solutions that we have observed.
Receiving Incomplete CAD Updates
Receiving insufficient CAD updates is one of the challenges. If, for example, the part update from a CAD engineer does not include the pockets that are required in the assembly, to the CAM engineer.
SOLUTION: A modeler that enables developers of a CAM programs to create intuitive processes for features such as feature extraction and duplication across CAD version updates. A modeler is capable of recognizing and extracting the pocket's architecture and the parameters that define it. Additionally, the CAM application can enable the engineer to reproduce the pocket in a few simple steps by exploiting the modeler's editing features such as scaling, filling, extruding, symmetrical patterning, and removing.
Last Minute Design Updates
The second major challenge is last-minute design changes may impact manufacturers as a result of simulation.
SOLUTION: With 3D software components, you may create applications in which many simulation engineers can work together to make design modifications to the CAD at the same time, with the changes being automatically merged at the end.
Challenging Human-driven CAM Manufacturing
The third major challenge we have included is that CAM engineers must perform manual steps in human-driven CAM programming, which takes time and requires expert CAM software developers. Furthermore, when the structure of the target components grows more complicated, the associated costs and possibility of human failure rise.
SOLUTION: Self-driving CAM is the best solution for this challenge. Machine-driven CAM programming, also known as self-driving CAM, provides an opportunity to improve this approach with a more automated solution. Preparing for CAM is simple with the self-driving CAM approach, and it can be done by untrained operators regardless of part complexity. The technology handles all of the necessary decisions for CAM programming operations automatically. In conclusion, self-driving CAM allows for efficient fabrication of bespoke parts, which can provide substantial value and potential for job shops and machine tool builders.
Computer Aided Manufacturing Examples
CAM is widely utilized in various sectors and has emerged as a dominant technology in the manufacturing and design industries. Here are two examples of sectors where CAM is employed efficiently and drives solutions to many challenges in the specific business.
Virtual 3D prototype systems, such as Modaris 3D fit and Marvellous Designer, are already used by designers and manufacturers to visualize 2D blueprints into 3D virtual prototyping. Many other programs, such as Accumark V-stitcher and Optitex 3D runway, show the user a 3D simulation to show how a garment fits and how the cloth drapes to educate the customer better.
Aerospace and Astronomy
The James Webb Space Telescope's 18 hexagonal beryllium segments require the utmost level of precision, and CAM is providing it. Its primary mirror is 1.3 meters wide and 250 kilograms heavy, but machining and etching will reduce the weight by 92% to just 21 kilograms.
What is the best software for CAM?
Mastercam has been the most extensively utilized CAM software for 26 years in a row, according to CIMdata, an independent NC research business.
How CAD-CAM helps manufacturers?
Customers can send CAD files to manufacturers via CAD-CAM software. They can then build up the machining tool path and run simulations to calculate the machining cycle times.
What is the difference between CAD and CAM?
Computer-aided design (CAD) is the process of developing a design (drafting). CAM is the use of computers and software to guide machines to build something, usually a mass-produced part.