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.
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.
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.
Article | April 6, 2021
As the pandemic upended plans for marketing and sales in 2020, it forced marketers in the manufacturing industry to adopt the tactics of the remote world. Many of them are still wondering how they can focus on driving business growth in 2021. Intent data has undoubtedly added some spice to the season of online marketing.
Research conducted by B2BecNews on 110 businesses found that 59.5% of business buyers research two to three websites before buying while 29.7% research up to seven websites.
The “How” of Intent Data
Intent data allows businesses to channel their expenditure to the leads that matter the most. It boosts sales and encourages marketers to be smarter by doing more in less time.
Moreover, b2b buyers now tend to look for an immersive digital experience and are likely to conduct more and more searches before engaging with a brand. Such digital activity will tell you what a visitor’s intentions are called the intent data.
To drive your business, here are some tried-and-true and unexpectedly productive ways to scale up your marketing and sales game using intent data.
Improve your Sales Pitches/Pipelines
When you are expanding or redefining your business because you want to target a new market or audience, third-party intent data is a decent place to start. Through intent data, your sales team can build a year’s pipeline by reaching target audiences.
To get the value of your sales, you can use intent data categorizing with a professional group, seniority, functional area, business size, and more for targeted prospects. And if your data provides contact information, your sales team will have an even deeper understanding of the dynamics of prospects’ buying activities.
Moreover, learning about the fact if a CEO or a random visitor visits your website creates a difference between a quality lead and a generic one. There are times when organizations don’t vigorously look for a product. But with the right content force, you can direct them towards a purchase decision. This way, you can get a chance to pitch and improve sales.
So, how can content pitch sales?
The next point explains the importance of nurturing content on your website.
Nurture with Personalized Content
Once you target new prospects, you can nurture them with excellent and informational marketing content. These can be in various forms like articles, blogs, advertisements, social media, infographics, and more.
Personalization results better in the sea of marketing (digitally or manually). Since the pandemic has pushed the digital world extensively, personalization is on a hike. Companies that personalize their marketing strategies to communicate are improved by 86% in customer relations, have higher conversation rates, and observed improvement in businesses.
To personalize your content, you have to look at intent data and search for the prospect’s interests. After your research, you can create content for them. Paying attention to contextual information will improve the prospect’s experience, causing them to turn into your client.
After you create personalized content, what will happen next? Find out ahead.
Generate High-Quality Leads
Intent data tells you how far each prospect has progressed. A combination of intent and context data helps with lead scoring, which shows you the quality of leads.
A visit to your website by an intern is somewhat different from a CEO’s visit.
Consuming content on general industry information differs in value from product-specific content that provides information on websites.
When a visitor compares prices, it intends to buy, opposite to a visitor who bookmarks pages.
Besides, intent data for manufacturers also tells:
Channels to target your prospects actively.
Content to encourage
Offers to serve
The timing of each lead nurturing action
Improve Account-Based Marketing Campaigns
Account-based marketing and intent data go hand-in-hand. So, it would be best if you worked through every possible path to collect more information about your prospects. This way, it will help you take a focused approach. Once you identify the interested prospects, you can focus your time and energy on those accounts and expand your reach.
Intent data helps you to find more in-market customers. They can score leads with better precision and re-shape your marketing campaigns by showing up with the right message at the right time.
Include Marketing Automation Operations
Implementing marketing automation technologies with intent data will save your team's time. As they usually spent analyzing data entry by automatically setting alerts when buyers intend to show their interest.
Why is Intent Data for Manufacturing Becoming Crucial for Future?
With marketers, or say, manufacturing marketers, it's always vital to drive revenue for business and get ahead with trending marketing paths. For this, knowing intent of prospects is a must to gain success.
Knowing a prospector’s behavior can help your marketing team target a specific profile and create personalized content on demand to increase their purchase decision. After all the information is collected, prospects become more knowledgeable and informed of the decision they make. More information attracts more potential buyers when they are informed conveniently at the right time and manner. In this entire process, you gain an increased ROI.
These aspects are incomplete without intent data for manufacturers, which targets numerous data and creates an easy baseline so that marketers can learn precisely about potential prospects’ behaviors. Intent data can be used for the future through a particular pattern. Generic marketing campaigns delivered to a random audience will simply shut down your business. Because now, the users expect to see content that’s valuable to them.
Therefore, intent data for manufacturers is the key to providing better answers and solutions and allowing better marketing budgets. Both of these lead to more conversions which results in more revenue.
Frequently Asked Questions
How is intent data collected?
The collection of intent data is not new to marketers. It has gained prominence only after the pandemic. The data is gathered through the website. Its analysis is done by tracking visitors to the website, clicks, chatbots, duration of stay, and information search.
How can manufacturers leverage intent data?
The steps to leverage are:
1. identify the prospect and what it wants to search or trying to search. It could be keywords, trending words or phrases, and more.
2. Create quality yet informational content following the prospects’ interest.
3. Now, it’s time to promote content with the right on different channels to attract prospects.
What are the intent data tools for manufacturers?
Some good intent data tools manufacturers can use are:
What is buyer intent data for manufacturers?
Through buyer intent data, your sales team easily reaches out and gets engaged with the right prospect at the right time. Manufacturing marketers use it to plan can create effective campaigns to target potential ones and convince them to buy.
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"text": "The steps to leverage are:
1. identify the prospect and what it wants to search or trying to search. It could be keywords, trending words or phrases, and more.
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3. Now, it’s time to promote content with the right on different channels to attract prospects."
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"text": "Some good intent data tools manufacturers can use are:
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"text": "Through buyer intent data, your sales team easily reaches out and gets engaged with the right prospect at the right time. Manufacturing marketers use it to plan can create effective campaigns to target potential ones and convince them to buy."
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 23, 2021
Every manufacturing company aims to be as efficient as possible to maximize profit. However, it's difficult to determine where you stand and what targets to establish unless you can precisely measure your efficiency. Manufacturing KPIsplay an important role in this process.
Keeping track of many indicators without considering their commercial worth is a waste of time.
“Not everything that can be counted counts and not everything that counts can be counted”
- Albert Einstein
But connecting goals to measurements is a certain way to track progress and improve processes. So let's get started with how to choose the most appropriate key performance indicators(KPIs) for your business.
Manufacturing KPI 2022: How to Choose the Right One?
Why are KPIs called “Key” Performance Indicators? While any statistic can be used to assess performance, KPIs are the most critical. Hence they are called key performance indicators. Companies' priorities while selecting their company KPIs may differ substantially depending on the industry in which they operate.
“Strategic-operational KPIs alignment gives the organization a powerful tool to use when implementing change.”
― Pearl Zhu
A corporation should not track more than ten manufacturing KPIs to avoid overblowing processes. So, manufacturing efficiency, customer satisfaction, lead times, etc., should all be included.
Depending on your business nature, you must select your KPIs. However, each of those indicators must meet a set of criteria before being considered meaningful.
So, what is a decent KPI for manufacturing?
It gives objective and clear data on progress toward a certain goal
It measures efficiency, quality, punctuality, and performance
It allows for tracking performance over time
It helps in decision making
It should be the one that matches the company's long-term objectives
It has to be measurable and quantifiable
It must be realistic and actionable
Following that, let's have a look at the most important manufacturing KPIs for 2022, which will assist you in better understanding your manufacturing business and formulating a growth strategy in line with that understanding.
Most Critical Manufacturing KPIs in Order of Priority
Despite the fact that manufacturers should also monitor general key performance indicators (KPIs) such as sales revenue, net profit margin, and so on, the manufacturing business demands the tracking of specific manufacturing metrics. Below are some of the most important manufacturing key performance indicators (KPIs).
Using this manufacturing KPI metric, you can see how much value there is in products still in progress. It assists manufacturing organizations in determining how much of their working capital is locked up in incomplete products and can aid in identifying supply chain managementdifficulties.
You can compute the Work-In-Progress (WIP) by using the formula provided below.
Return on Assets
This manufacturing KPIseems to be more about financing than manufacturing. Yes, it does. However, financial measurements are just as vital as production ones. A firm cannot exist unless it generates revenue, and this indicator measures how efficiently your company uses its assets and generates revenues.
The Return on Assets (ROA) of your company can be calculated using the formula below.
Cost Per Unit
It is critical to understand the overall manufacturing cost per unit. You can't appropriately price a product without it. This manufacturing KPIdivides total manufacturing costs by the number of units produced. Materials, overhead, depreciation, and labor are standard costs.
Companies utilize this manufacturing statisticto forecast future raw material needs to satisfy client demand. Unfortunately, this statistic is more challenging to employ because it is mainly dependent on unpredictable external circumstances. The basic formula is:
The seasonal factors are distinct
Average demand is calculated as:
A company's lead time, also known as order cycle time, is an important KPI. It shows how swiftly your organization processes orders and meets client requests. It is time it takes to complete an order from confirmation to delivery.
Long lead times can imply process inefficiencies that produce bottlenecks and excessive expenses. Conversely, short lead times are important since they allow you to respond to consumer needs swiftly and efficiently.
The total lead time can be divided into smaller segments as follows:
The time it takes to manufacture a product from start to finish
The time it takes to deliver a product from stockto a client
The time it takes suppliers to deliver products to manufacturers
By segmenting the lead time, you may more precisely identify the areas where inefficiencies in the process occur.
Toyota’s Four Key Performance Metrics
As a company, Toyota places a high focus on environmental protection. Toyota's vehicles are designed to use less fuel and produce less waste.
Regardless of the company's size, Toyota is committed to protecting the environment. Toyota's 'Earth Charter' was created in 1992 as part of the company's Global Policy initiative. It was Toyota's first overseas facility and the UK's first ISO14001-certified car manufacturer. Waterborne paints were utilized for the first time and zero waste was sent to landfills. In 2009, Toyota Manufacturing UK did not use any incinerators.
Toyota has developed a set of key performance indicators (KPIs) for each of its major production areas. There are four key performance metrics: energy, water, waste, and volatile organic compounds (VOCs).
Since its start in 1992, Toyota Manufacturing UK has attempted to mitigate its environmental impact. The figure below illustrates the environmental KPIsfor the Burnaston plant. Each year, Toyota sets new goals to improve its results.
79% reduction in vehicle energy consumption
62% reduction in waste per car
76% reduction in VOC emissions per car
79% reduction in water consumption per vehicle
You can use the aforementioned manufacturing KPIsto construct your manufacturing KPI template, but keep in mind that the manufacturing metricsyou need to track may differ from those listed here. The first prudent move any business can make while examining its operation is to identify and track the relevant KPIs. Also, in manufacturing, there are several different KPIs, phrases, and abbreviations need to be understood and used where it makes the most sense.
What is manufacturing KPI?
A manufacturing Key Performance Indicator (KPI) or metric is a well-defined and measurable indicator that the manufacturing sector uses to evaluate its performance over time and compare it to that of other industries.
What are the key KPIs for manufacturers?
On-Time Delivery, Production Schedule Attainment, Total Cycle Time, Throughput, Capacity Utilization, and Changeover Time are some of the key manufacturing KPIs.