First Steps Towards Industry 4.0

RON PIEPER| January 15, 2019
FIRST STEPS TOWARDS INDUSTRY 4.0
Industry 4.0 is upon us, but what exactly does it mean? Not just in defining the term, but in understanding the potential benefit it can bring, then once prepared, how to go about implementing Industry 4.0 technologies in your shop. Recent years have seen a resurgence in manufacturing activity that while good for business, can cause stress – too much work to handle with existing space, leading to issues with manpower, processes, and equipment.

Spotlight

AEM

AEM is a manufacturer of SMART metering devices for electricity and gas as well as AMR and AMM systems for the management of electricity and gas. The company continuously increases its product portfolio, adding at the same the concept of integrated solution, adapted for the specific need of the client, thus facilitating the penetration on new external markets.

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Why Manufacturing Companies Must Consider Business Intelligence

Article | December 14, 2021

Do manufacturing businesses require Business Intelligence (BI)? The answer is YES. Manufacturing is one of the most data-intensive businesses, producing massive amounts of data ranging from supply chain management to shop floor scheduling, accounting to shipping and delivery, and more. All of this information would go to waste if not properly categorized and utilized. Scrutinizing and analyzing your data with business intelligence will help you become a more efficientand productive organization. Your organized data can show you where the gaps or inefficiencies are in your manufacturing process and help you fix it. Many companies simply 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, Industry Executive at Microsoft BI has the potential to improve the operations of an organization and transform it into an organized one. According to Finances Online research, more than 46% of organizations are already employing a BI tool as a significant part of their company strategy, and according to Dresner Advisory Services research, 8 in 10 manufacturers who use BI for analytics have seen it function successfully. How Manufacturing Operations Are Improving with Business Intelligence? As revealed by the BI statistics above, we can see that business intelligence is critical in manufacturing. To further illustrate how business intelligence supports the manufacturing industry, let's look at some of the business intelligence benefits that are making a difference in the manufacturing industry. Advances Operational Efficacy While modern enterprises create massive amounts of data, not all of this data is relevant. Today's business intelligence solutions take all of the data from your organization and transform it into an easily comprehensible and actionable format. It enables you to minimize or fix errors in real-time. Additionally, it helps you to forecast raw material demand and assess procedures along the supply chain to ensure maximum efficiency. Allows for the Analysis and Monitoring of Financial Operations Business intelligence solutions provide insight into sales, profit, and loss, raw material utilization and can usually assist you in optimizing resources to increase your return on investment. Understanding your cost-benefit analysis, BI enables you to manage production costs, monitor processes, and improve value chain management. Assists in the Management of Your Supply Chain Manufacturing companies engage with various carriers, handling these multiple processes can be complicated. BI enables manufacturing companies to have more accurate control over shipments, costs, and carrier performance by providing visibility into deliveries, freight expenditures, and general supplies. Contributes to the Reduction of Inventory Expenses and Errors Overstocks and out-of-stocks are substantial barriers to profitability. Business intelligence can assist you in tracking records over time and location while identifying issues such as product faults, inventory turnover, and margins for particular distributors. Determines the Efficiency of Equipment Several factors can cause inefficient production. For example, errors with equipment due to improper installation, maintenance, or frequent downtime can reduce production. So, to keep industrial operations running well, one must monitor these factors. Manufacturers can maintain their machines' health using data analytics and business intelligence. It provides real-time information about your production lines' status and streamlines production procedures. How Business Intelligence Helped SKF (SvenskaKullagerfabriken) to Efficiently Plan Their Future Manufacturing SKF is a key supplier of bearings, seals, mechatronics, and lubrication systems globally. The company posses its headquarter in Sweden and has distributors in over 130 countries. Due to SKF's extensive worldwide reach and product diversity, they constantly need to forecast market size and demand for their products to modify their future manufacturing. Generally, SKF experts developed and kept their forecasts in traditional and intricate excel files. However, the efforts of maintaining and reconciling disparate studies were excessively high. As a result, SKF used require days to generate a simple demand prediction. Later, SKF integrated its business data assets into a single system by utilizing business intelligence in production. Following that, they could swiftly begin sharing their data and insights across multiple divisions within their firm. They are now able to aggregate demand estimation fast and does not face cross-departmental issues about data integrity for the vast number of product varieties they manufacture. This intelligent data management enabled SKF to plan their future production operations efficiently. Final Words Business intelligence in manufacturing makes a big difference in the organization's entire operations. Given the benefits of business intelligence in manufacturing, a growing number of manufacturers are implementing it in their operations. According to Mordor Intelligence, Business Intelligence (BI) Market was worth USD 20.516 billion in 2020 and is anticipated to reach USD 40.50 billion by 2026, growing at a 12% compound annual growth rate throughout the forecast period (2021-2026). Hence, we may say that the business intelligence is crucial for manufacturing and is booming, thanks to its enormous potential and the numerous benefits it provides to various businesses. FAQ Why is business intelligence so important in manufacturing? Organization intelligence may assist businesses in making better decisions by presenting current and past data within the context of their business. Analysts can use business intelligence to give performance and competitive benchmarking data to help the firm run more smoothly and efficiently. What value does BI add to manufacturing? Business intelligence solutions provide insight into sales, profit, and loss, raw material utilization and can usually assist you in optimizing resources to increase your return on investment. Understanding your cost-benefit analysis enables you to manage production costs, monitor processes, and improve value chain management. What is business intelligence's key objective? Business intelligence is helpful to assist corporate leaders, business managers, and other operational employees in making more informed business

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Real-Time Data Collection in Manufacturing: Benefits and Techniques

Article | January 12, 2022

Real-time manufacturing analytics enables the manufacturing base to increase its efficiency and overall productivity in a variety of ways. Production data is an effective means of determining the factory's efficiency and identifying areas where it might be more productive. “Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.” – Geoffrey Moore, an American Management Consultant and Author Creating a product-specific data collection may assist you in determining and visualizing what needs to be improved and what is doing well. In this article, we'll look at why manufacturing data collection is vital for your organization and how it may help you improve your operations. Why is Manufacturing Data Collection so Critical? Visibility is the key benefit that every manufacturer gets from manufacturing data collection. By collecting real-time data, or what we refer to as "shop floor data," manufacturers better understand how to assess, comprehend, and improve their plant operations. Manufacturers can make informed decisions based on detailed shop floor data. This is why having precise, real-time production data is critical. “According to Allied Market Research, the worldwide manufacturing analytics market was worth $5,950 million in 2018 and is expected to reach $28,443.7 million by 2026, rising at a 16.5% compound annual growth rate between 2019 and 2026.” For modern manufacturers, the advantages of data collection in manufacturing are numerous. The manufacturing industry benefits from production data and data-driven strategy in the following ways. Substantial reduction in downtime by identifying and addressing the root causes of downtime. It increases manufacturing efficiency and productivity by minimizing production bottlenecks. A more robust maintenance routine that is based on real-time alerts and machine circumstances. Improvements in demand forecasting, supplier scoring, waste reduction, and warehouse optimization reduce supply chain costs. Higher-quality goods that are more in line with customers' wishes and demands depending on how they are utilized in the current world. So, after looking at some of the significant benefits of real-time manufacturing analytics, let’s see what type of data is collected from production data tracking. What Sorts of Data May Be Collected for Production Tracking? Downtime: Operators can record or track downtime for jams, cleaning, minor slowdowns, and stoppages, among other causes, with production tracking software. In the latter scenario, downtime accuracy is optimized by removing rounding, human error, and forgotten downtime occurrences. The software also lets you categorize different types of stops. Changeovers: Changeovers can also be manually recorded. However, changeovers tracked by monitoring software provide valuable data points for analysis, considerably reducing the time required for new configurations. Maintenance Failures: Similar to downtime classification, the program assists in tracking the types of maintenance breakdowns and service orders and their possible causes. This may result in cost savings and enable businesses to implement predictive or prescriptive maintenance strategies based on reliable real-time data. Items of Good Quality: This is a fundamental component of production management. Companies can't fulfill requests for delivery on schedule unless they know what's created first quality. Real-time data collection guarantees that these numbers are accurate and orders are filled efficiently. Scrap: For manufacturers, waste is a significant challenge. However, conventional techniques are prone to overlooking scrap parts or documenting them wrong. The production tracking system can record the number and type of errors, allowing for analysis and improvement. Additionally, it can capture rework, rework time, and associated activities. WIP Inventory: Accurate inventory management is critical in production, yet a significant quantity of material may become "invisible" once it is distributed to the floor. Collecting data on the movement and state of work in progress is critical for determining overall efficiency. Production Schedule: Accurate data collection is essential to managing manufacturing orders and assessing operational progress. Customers' requests may not be fulfilled within the specified lead time if out of stock. Shop floor data gathering provides accurate production histories and helps managers fulfill delivery deadlines. Which Real-time Data Collection Techniques Do Manufacturers Employ? Manufacturers frequently employ a wide range of data collection techniques due to the abundance of data sources. Manual data collection and automated data collection are two of the most common data collection methods. Here are a few examples from both methods: IoT: To provide the appropriate information to the right people at the right time with the correct shop floor insight, IoT (Internet of Things) sensor integration is employed. PLC: The integration of PLC (Programmable Logic Controller) is used to measure and regulate manufacturing operations. HMI: It can provide human context to data by integrating line HMI (Human Machine Interface) systems (such as individual shop terminals like touch screens located on factory floor equipment). SCADA: Overarching management of activities with SCADA (Supervisory Control and Data Acquisition) systems. CNC and Other Machines: Integrating CNC and other machines (both new and older types) to keep tabs on production efficiency and machine well-being is a must these days. Final Words One of the most challenging aspects of shop floor management is determining what to measure and what to overlook. The National Institute of Standards and Technology recently conducted a study on assisting manufacturing operations in determining which data to collect from the shop floor.Additionally, you may utilize the manufacturing data set described above to obtain information from your manufacturing facility and use it strategically to improve operations, productivity, efficiency, and total business revenue in the long term. FAQ What is manufacturing analytics? Manufacturing analytics uses operations and event data and technology in the manufacturing business to assure quality, improve performance and yield, lower costs, and optimize supply chains. How is data collected in manufacturing? Data collection from a manufacturing process can be done through manual methods, paperwork, or a production/process management software system.

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How to Improve Production Scheduling: The 5 Crucial Elements

Article | December 8, 2021

The manufacturing production schedule is a critical aspect that enables the manufacturing business to complete each production activity precisely and on time. Allocating different raw materials, resources, or processes to distinct project phases is called a production schedule. Its goal is to make your manufacturing process as efficient and cost-effective as possible in terms of resources and labor — all while delivering products on schedule. 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 So, how is the overall production schedule managed? According to businesswire, the global APS (Advanced Production Planning and Scheduling) software market was valued at $1,491.22 million in 2020 and is anticipated to raise $2,941.27 million by 2028 expanding at an 8.86 percent CAGR from 2020 to 2028. Some software and tools are available to assist manufacturing organizations in properly scheduling production planning, including MaxScheduler, TACTIC, MRPeasy, and Gantt charts. Though there are numerous software programs available on the market for production scheduling, the most crucial aspect is determining which elements to consider when planning production. This blog will look at the five most important factors to consider while planning the production schedule. Five Elements to Consider When Scheduling Production As we saw in the introduction, production scheduling is used in the manufacturing process to assign plant and machinery resources, schedule human resources, plan production processes, and purchase materials. So, what are the primary components or stages of this production scheduling process? Let's take a quick look at each of them. Planning to Make the Best Use of the Company's Resources The role of planning in production scheduling is to use the company's resources to maintain a regular production flow. As a result, downtime is decreased, and bottlenecks are minimized, allowing production to be optimized. For production scheduling, two forms of planning can be used: Dynamic Planning: Dynamic planning is carried out under the idea that process stages will alter. So, materials must be ready, but production cannot begin until demand is decided. Static Planning: Static planning is done keeping in mind that all process steps will be completed on schedule and without adjustments. Routing to Determine the Order of Actions A “bill of materials” is used in discrete manufacturing to specify what things are needed and in what quantities. Routing determines the path and sequence of required phases of the process. It may involve in-house operations, but it may also comprise sub-contracted components that must be returned to the production flow for final assembly. Scheduling to Make Use of Predetermined Planning Levels To manufacture products from components or raw materials, scheduling makes use of the previously set planning level. As a result, it is time-dependent and must meet the demand outlined at the planning level. Each department, product, and procedure can have their own unique set of timetables. Sub-schedules for sub-assemblies or mixes and blends may be defined by department-specific master production schedules, utilized at the highest level to define product timeframes. Dispatching to Decide on Immediate Actions Dispatching assigns the following jobs to be done from a subset of the production queue. Dispatching is utilized to make quick decisions. This is in contrast to planning, which involves the planning of future actions. Dispatching is utilized in both pull and push production systems. Execution to Ensure that all Processes are Carried out Correctly Production scheduling must rely on proper execution to ensure that all processes are completed appropriately and in the sequence planned. It requires everyone to know what they are expected to do and when they are expected to do it. Execution requires knowledgeable management decisions, well-trained employees, correct data in the manufacturing plan and schedule, and consistent sales statistics and forecast numbers. All must be present for the organization to carry out its production plan and fulfill orders. How MRPeasy – A Production Scheduling Software Assist Manufacturing Companies in Scheduling Their Production? MRPeasy is a cloud-based material requirements planning (MRP) application explicitly designed for small manufacturing units. Its primary functions are purchase order management, forecasting, and inventory management. This software simplifies the process of scheduling production. It enables you to evaluate all of your anticipated manufacturing orders (MO). The bill of materials (BOM), purchasing, and stocking are all maintained in one location, allowing you to quickly book inventory and increase purchase orders (PO) for acquired parts. MRPeasy enables you to: Obtain all of the detailed information on all of your MOs Consider MOs as a single block or as distinct operations. Drag-and-drop operations and operations to reschedule Calendar or Gantt chart views are available for monitoring scheduled orders. Additionally, you can manage MOs smoothly. With the production planning component, you may create, amend, and update MOs. This app compiles an exhaustive list of all your MOs. You can track their progress based on the status of an order or a part's availability. Additionally, you can search for, filter, and export your MOs. Final Words How to schedule production for your organization requires extensive research, planning, and analysis of overall product demand as well as a grasp of the time required to meet the demand. Production scheduling techniques such as job-based planning, batch method, flow method, and others help develop a productive manufacturing production schedule. Include the elements mentioned above in your manufacturing scheduling to get the best possible benefits, such as better production efficiency, lower production costs, and on-time product delivery for your manufacturing in 2022. FAQ How production planning differ from production scheduler? Production planning and scheduling are often mixed. But there is a difference. Planning decides what and how much work must be done, whereas scheduling specifies who and when the work will be done. What is real-time manufacturing scheduling? Real-Time Scheduling is a production planning, scheduling, and tracking tool that enables manufacturing organizations to improve customer satisfaction and achieve optimal operational performance cost-effectively. How can scheduling be improved? Communication with staff is a great way to improve scheduling. This is true for all businesses, software or otherwise. However, management should not burden employees with ambiguous or unclear communication, and vice versa. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "How production planning differ from production scheduler?", "acceptedAnswer": { "@type": "Answer", "text": "Production planning and scheduling are often mixed. But there is a difference. 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American Manufacturing Statistics

Article | May 20, 2021

The transformation of raw materials through mechanical, physical, or chemical processes into a new product is the definition of manufacturing in the U.S. These businesses include plants, mills, factories, and warehouses and they rely on power-driven equipment to produce their products. Small businesses and home-based businesses are included in the scope of U.S. manufacturing - this includes sectors like tailor-made clothing, bakeries, candy stores, or toy/crafts creators. Additionally, companies that contract with the businesses in these industries are included in the sector of American manufacturing. It is worth noting: U.S. manufacturing does not include anything relating to housing or commercial construction. Read more...

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Spotlight

AEM

AEM is a manufacturer of SMART metering devices for electricity and gas as well as AMR and AMM systems for the management of electricity and gas. The company continuously increases its product portfolio, adding at the same the concept of integrated solution, adapted for the specific need of the client, thus facilitating the penetration on new external markets.

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