Article | July 28, 2021
Rex Moore Group, Inc. is a Top50 electrical contractor delivering unmatched integrated electrical solutions. As an early adopter of Lean manufacturing principles, Rex Moore has created a company-wide culture of continuous improvement that drives significant value to their clients. The firm contracts and performs both design/build and bid work for all electrical, telecommunications, and integrated systems market segments.
Rex Moore has a full-service maintenance department to cover emergency and routine requirements for all facilities, whether an existing facility or one that has been recently completed by the company. The ability to negotiate and competitively bid various forms of contracts including lump-sum, fixed fee, hourly rate, and cost-plus work as a prime contractor, subcontractor, or joint venture is enhanced with Project Business Automation (PBA) from Adeaca. This solution permits the company to propose work only if they are in a position to be competitive in the marketplace and provide excellent service with fair compensation.
Rex Moore used Adeaca PBA as a construction management software for builders and contractors to integrate and facilitate its business processes in its ERP system. Together with Microsoft Dynamics, PBA integrated processes across the company on a single end-to-end platform. This allowed the company to replace 15 different applications with a single comprehensive system, eliminating the costs and inefficiencies associated with multiple systems and silos of information.
Article | January 20, 2022
A smart factory that leverages Industry 4.0 concepts to elevate its operations has long been a model for other industries that are still figuring out how to travel the digital manufacturing route. Smart manufacturing technology is all you need to know if you're looking to cash in on this trend.
“Industry 4.0 is not really a revolution. It’s more of an evolution.”
– Christian Kubis
In this article, we'll look at the advantages that many smart factory pioneers are getting from their smart factories. In addition, we will look at the top smart factory examples and understand how they applied the Industry 4.0 idea and excelled in their smart manufacturing adoption.
Industry 4.0 Technology Benefits
Manufacturing Industry 4.0 has several benefits that can alter the operations of manufacturers. Beyond optimization and automation, smart manufacturing Industry 4.0 aims to uncover new business prospects and models by increasing the efficiency, speed, and customer focus of manufacturing and associated industries.
Key benefits of Manufacturing Industry 4.0 in production include:
Improved productivity and efficiency
Increased collaboration and knowledge sharing
Better agility and adaptability
Improved customer experience
Reduced costs and increased profitability
Creates opportunities for innovation
World Smart Factory Case Studies and Lessons to Be Learned
Schneider Electric, France SAS
Schneider Electric's le Vaudreuil plant is a prime example of a smart factory Industry 4.0, having been regarded as one of the most modern manufacturing facilities in the world, utilizing Fourth Industrial Revolution technologies on a large scale. The factory has included cutting-edge digital technology, such as the EcoStruxureTM Augmented Operator Advisor, which enables operators to use augmented reality to accelerate operation and maintenance, resulting in a 2–7% increase in productivity. EcoStruxureTM Resource Advisor's initial deployment saves up to 30% on energy and contributes to long-term improvement.
Johnson & Johnson DePuy Synthes, Ireland
DePuy Synthes' medical device manufacturing plant, which started in 1997, just underwent a multimillion-dollar makeover to better integrate digitalization and Industry 4.0 smart manufacturing. Johnson & Johnson made a big investment in the Internet of Things. By linking equipment, the factory used IoT technology to create digital representations of physical assets (referred to as “digital twins”). These digital twins resulted in sophisticated machine insights. As a result of these insights, the company was able to reduce operating expenditures while simultaneously reducing machine downtime.
Bosch's Wuxi factory's digital transformation uses IIoT and big data. The company integrates its systems to keep track of the whole production process at its facilities. Embedding sensors in production machinery collects data on machine status and cycle time. When data is collected, complicated data analytics tools analyze it in real-time and alert workers to production bottlenecks. This strategy helps forecast equipment failures and allows the organization to arrange maintenance ahead of time. As a consequence, the manufacturer's equipment may run for longer.
The Tesla Gigafactory, Germany
According to Tesla, the Berlin Gigafactory is the world's most advanced high-volume electric vehicle production plant. On a 300-hectare facility in Grünheide, it produces batteries, powertrains, and cars, starting with the Model Y and Model 3. For Tesla, the goal is not merely to make a smart car, but also to construct a smart factory. The plant's photographs reveal an Industry 4.0 smart factory with solar panels on the roof, resulting in a more sustainable production method. On its official website, Tesla claimed to use cutting-edge casting methods and a highly efficient body shop to improve car safety. Tesla's relentless pursuit of manufacturing efficiency has allowed them to revolutionize the car industry.
The SmartFactoryKL was established to pave the way for the future's "intelligent factory." It is the world's first manufacturer-independent Industry 4.0 production facility, demonstrating the value of high-quality, flexible manufacturing and the effectiveness with which it can be deployed. The last four years, SmartFactoryKL has been guided by particular strategic objectives that drive innovation; the aim is to see artificial intelligence integrated into production. Two instances of AI-driven transformations include an "order-to-make' mass customization platform and a remote AI-enabled, intelligent service cloud platform that anticipates maintenance needs before they occur.
Enabling smart manufacturing means using the latest technology to improve processes and products. The aforementioned smart factory examples are industry leaders and are thriving by implementing Industry 4.0 technology. Small and medium-sized enterprises (SMEs) may use these smart factory examples to learn about the adoption process, challenges, and solutions. Industry 4.0 is aimed at improving enterprises and minimizing human effort in general. So adopt the smart factory concept and be productive.
What is the difference between a smart factory and a digital factory?
The digital factory enables the planning of factories using virtual reality and models, whereas the smart factory enables the operation and optimization of factories in real time.
Where does Industry 4.0 come from?
The term "Industry 4.0" was coined in Germany to represent data-driven, AI-powered, networked "smart factories" as the fourth industrial revolution's forerunner.
Article | October 20, 2021
Additive manufacturing has advanced significantly in recent years and is currently used in nearly every area to improve both products and processes in the manufacturing business. As a result, manufacturers have been more imaginative and innovative in offering relevant products to their target customer group due to this technological advancement.
Mr. Matt Mong, a prominent business executive, also mentioned in one of his Media7 interviews,
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
The use of additive technology provides several advantages, including creating unique shapes and low production costs. In addition, the increasing application of additive manufacturing technologies is accelerating the growth of the additive manufacturing market. According to recent research conducted by Metal AM, the value of additively produced components is expected to increase by 15% annually from $12 billion in 2020 to $51 billion in 2030. Thus, additive marketing is the way forward for all industries.
This article will cover the top five industries that utilize additive manufacturing and are advancing their businesses every day by overcoming the prevailing challenges such as production errors, downtime, and skilled labor shortage with the benefits of additive manufacturing.
Five Industries Utilizing Additive Manufacturing
Though additive manufacturing or 3D printing has penetrated almost all the industries, we have picked up a few of the prevailing industries that have started using additive manufacturing and excelling in it.
Additive Manufacturing in Aerospace
Aerospace has always been the first sector to adopt new technology. Precision is critical in this sector, as a failure of any component is not an option in aerospace. In aircraft production, dimension, weight, and temperature tolerance are critical, and additive technology provides every solution around this. As a result, additive manufacturing has evolved into a critical technology that adds value throughout the supply chain for prominent aircraft firms like Airbus, GE, Boeing, and TTM.
Additive Manufacturing in Healthcare
Healthcare or medical is one of the industries that is maximizing the benefits of additive manufacturing. Technology enables the medical sector to be more innovative, accurate, and capable of offering the most excellent medical solutions available today. It enables medical practitioners to rehearse before procedures and medical researchers to study functioning human tissues for basic biological research. In addition, it is utilized to fabricate tissues and organoids, surgical instruments, patient-specific surgical models, and bespoke prostheses. Thus, additive technology has altered the face of medicine, elevating it to a more sophisticated and solution-oriented state.
Additive Manufacturing in Architecture
As with other industries, additive manufacturing reshapes the architectural and construction sectors by eliminating conventional industrial barriers such as production time and cost, material waste, and design constraints. By utilizing 3D printing, designers can now quickly construct and demonstrate how structural parts will function and appear when combined. It also assists designers in seeing how the plan will seem subsequent execution.
Additive Manufacturing in Manufacturing
Nowadays, additive manufacturing, or 3D printing, is a significant part of the manufacturing process. For example, rather than fabricating a product from solid blocks, additive manufacturing may build a three-dimensional model utilizing fine powder, various metals, polymers, and composite materials as raw materials for constructing a 3D model with a three-dimensional printer.
Additive Manufacturing in Education
Additive manufacturing is reshaping the educational industry by introducing a new teaching trend and transforming the classroom experience for students. It is being used in various disciplines, including engineering, architecture, medicine, graphic design, geography, history, and even chemistry. They may produce prototypes, three-dimensional models, and historical objects, among other things. Thus, technology enables learners to get more practical information about their respective courses directly on the floor.
How has General Electric (GE) been pioneering the use of Additive Manufacturing for 20 years?
GE's primary competency is additive manufacturing (3D printing), and the company has made significant investments in the technology. It utilizes additive technology to manufacture a range of components for aviation and other sectors. This article will look at one of their manufacturing case studies and how additive technology enabled them to get the desired result from the end product.
CASE STUDY: OPTISYS
Optisys modified a vast, multi-part antenna assembly into a palm-sized, lighter, one-piece additive metal antenna. The antenna's aluminum material was chosen because of its surface conductivity, low weight, corrosion resistance, and stress and vibration resistance. Optisys was able to break even on machine acquisition within one year after acquiring its first Direct Metal Laser Melting (DMLM) equipment by utilizing additive technologies. (Source: General Electric)
Benefits and Outcomes
Non-recurring expenditures were reduced by 75%.
Weight loss of 95%
The size was reduced by 80%.
Part-to-part reduction of 100-to-1
Cycle duration shortened from 11 to 2 months
5 product lines were created for AM, a new market growth
Additive manufacturing benefits a wide variety of businesses. Industries must recognize the advantages of additive manufacturing and begin using the technology in their manufacturing processes to cut production time and costs while increasing product accuracy. This game-changing expansion of the additive manufacturing market across several industries is upgrading both products and production processes.
How do you define additive manufacturing?
Additive manufacturing (AM), more generally referred to as 3D printing, is a ground-breaking manufacturing technique that enables the creation of lighter, more robust components and systems. As the name implies, additive manufacturing is adding material to an item to create it.
Is additive manufacturing the same as 3D printing?
Both terms are interchangeable. Additive manufacturing and 3D printing manufacture components by connecting or adding material from a CAD file.
Which companies specialized in additive manufacturing?
American Additive Manufacturing, Forecast 3D, Sciaky, Inc., 3 Axis Development, Inc., Jonco Industries, Inc., Polyhistor International, Inc., and Caelynx, LLC are renowned companies for additive manufacturing in the United States of America.
"name": "How do you define additive manufacturing?",
"text": "Additive manufacturing (AM), more generally referred to as 3D printing, is a ground-breaking manufacturing technique that enables the creation of lighter, more robust components and systems. As the name implies, additive manufacturing is adding material to an item to create it."
"name": "Is additive manufacturing the same as 3D printing?",
"text": "Both terms are interchangeable. Additive manufacturing and 3D printing manufacture components by connecting or adding material from a CAD file."
"name": "Which companies specialized in additive manufacturing?",
"text": "American Additive Manufacturing, Forecast 3D, Sciaky, Inc., 3 Axis Development, Inc., Jonco Industries, Inc., Polyhistor International, Inc., and Caelynx, LLC are renowned companies for additive manufacturing in the United States of America."
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.