Smart Factory Analytics E-Book

Chapter 1

Identifying the internal champion who will lead the project

For your project to be successful within the company, it is essential to target an internal champion who will manage it from the beginning to the end. This individual must be able to indentify, facilitate and implement the changes experienced by manufacturers.

Think of someone who could act as a leader and a visionary at ease with the technology and able to identify points to monitor, get the smart sensors installed, identify the roles for dashboards and coordinate the dashboard customization. The person who will take on this role must be able to guide the teams around a single digital vision in order to provide a clear direction step by step to achieve the desired results. In this context, being a good listener and being able to focus on data are two essential qualities that your champion must possess, since the champion’s mission will be to get feedback from the teams in order to achieve common goals. This person must have an in-depth knowledge of the production processes, since he uses the machines on the line.

Listen & Focus on Data

Because of his rigor and ability to manage change, this champion would be an outstanding coach within his team. The champion would therefore know the importance of making crucial decisions at the right time based on the analyses collected in order to improve the production processes. This leader must be able to build relationships with influential people and must also have strong problem-solving skills. Do you already have someone in mind who’d be perfect for this role? Since the implementation of a Smart Factory Analytics is an important project, inform this person of your objectives and start your technological shift off on the right foot!

"As employees are aware of their impact on production, downtime has been reduced without other continuousimprovements. Employees become empowered to reduce set-up times and react quickly as problems occuron their line. Over time, by making better and better use of the application, I expect to identify even moreopportunities for improvement and benefits related to the use of Tileboard."

- Jahziel Ugalde Angeles, VP of Operations Lol Tun

Once your champion is identified, you are ready to take the next step!

Chapter 2

Identifying the bottleneck in the factory

In each manufacturing company, identifying and managing bottlenecks is a major challenge. Since these bottlenecks can greatly affect your production, it is important to identify them and to readjust to continuously improve.

Here are 5 tips to help you do this:

1. Identify your Machines with the Most Production in Progress

In a discreet production context (mode event) we should identify the machine that has the most parts or “jobs” waiting, which tells us about the availability. In the case of continuous processes such as a production line, we identify the line or lines that prevent it’s from producing more finished products every day (e. g. packaging).

2. Identify Some Machines that are Interdependent

Next, it is necessary to identify the machines that depend on each other, since a bottleneck can occur at different places in your factory depending on the orders to be produced. When there is a slowdown, production is not optimal.

3. Determine the Equipment that is the Most Expensive to Use

It is relevant to determine which equipment is the most expensive in terms of use. Indeed, sometimes a machine requires more employees, or the consumption, energy costs or acquisition costs are high. Once you have connected your factory, it will be even easier to follow this metric.

4. Consider Raw Material Costs

Considering the cost of raw material consumed by a machine allow us to monitor the potential waste of resources. In order to prevent losing money, this bottleneck must be prevented.

5. Identify the Machines with the Fastest Throughput

The fast throughput of some machines can cause significant slowdowns if they are stopped or configured at speeds below established standards. By identifying these machines, we are on the lookout for a potential bottleneck.

"The overall big picture of our production thanks to TileBoard has allowed us to understand where our main downtimes are and what could be beneficial for us. That’s why we want to invest more time, energy and resources in this technology to use the tool to its full potential."

- Dave Lamothe, Première Moisson

TileBoard

Chapter 3

Identifying what we want measured in the factory

This step is crucial in determining what you want to measure in the factory to optimize production. Numerous indicators can be measured: machine downtimes, machine production speed, cycle times, temperature, flow rate, the amount of energy, etc.

On the other hand, there are indicators common to all machines or production lines: unplanned downtimes. So why not start by measuring unplanned downtime, a performance indicator that everyone in your company understands and values? The frequency and duration with which they occur can be measured in order to prevent them. Real-time data collection, proven algorithms and customized dashboards inspire concrete actions to improve overall productivity. This data helps to compare teams and create a culture of continuous improvement.

Two Types of Production

Continuous Production line

In this case, we want to know the percentage of availability, the number of minutes of each downtime and their frequency, as well as the production speed.

Batch Production on Machines

In this environment, we want to know the percentage of the uptime. If it is a machine that produces few parts, but each part requires a lot of time, then you will want to measure the production cycle time for a batch.

4 Key Performance Indicators (KPIs)

Downtime

Measuring downtimes on a machine in quantities (1,2,10) and in minutes. There is the possibility of calculating each event or to accumulate them. The calculation of downtime costs.

Speed

Measuring the production speed.

Uptime

Calculating production time without interruption.

Cycles

Calculating the time it takes a machine to produce a batch from start to finish.

Chapter 4

Calculating the project’s ROI

First, it is essential to analyze the potential benefits of large-scale deployment of the Smart Factory Analytics in your factory. To do this, you must calculate the ROI (return on investment) of the project. We have therefore created an ROI calculator, which you can access here, allowing you to become aware of the added value of such a project.

Once estimated, you will then be able to create a benchmark to see if your ROI has been achieved or not. This will ensure that you can evaluate the effectiveness of your deployment as you roll it out across your factory environments.

There are several factors to consider when developing your objectives:

1. Number of continuous lines or number of machines

2. Average purchase cost of a line or machine

3. Part maintenance cost per year

4. Monthly energy expenditure

5. Number of employees per machine per line

6. Number of shifts per day

7. Average hourly wage

You will see that the introduction of Smart Factory Analytics will generate rapid ROI, often as short as a few months. They do not require significant investments or heavy infrastructure. The SaaS solutions enable you to take advantage of the technological innovations that will enhance the platforms used, including augmented reality, geolocation, data science and artificial intelligence.

Chapter 5

Why choose a SAAS plug & play technology solution?

The rise of the industry 4.0 and IIoT has led to the emergence of a host of innovative technologies. Most of them are cloud computing, they do not require any infrastructure and most of them are offered in SaaS (Software as a service) model that allows you to take advantage of technologies and services through monthly subscriptions rather than having to make a huge investment at the beginning of the project. The ROI is therefore quickly appreciable and the risks are very low.

A Quick Installation

Did you know that the Worximity solution can be implemented and installed within one to five days? This technology allows you to measure your KPI before and after optimization, to better see the impact of the projects that have been carried out. After all, without actual data, only rough estimates can be made that carry some risk.

Simple to Use

The Existing ERP software requires long and sophisticated customization while custom systems require the installation of servers and PLCs to be configured to meet manufacturers’ monitoring needs. However, with a IIoT solution, you can view your production data in real time on your mobile devices or computers without having to make a specific and costly configuration. This gives you more time to focus on continuous productivity improvement.

A Gradual Implementation

The IIoT can gradually take shape in your factory, machine by machine, according to your priorities. Start with key items, familiarize your teams with the new mobile tools and then spread these new smart factory practices to all your facilities. It is better to start right now and optimize your factory over time than to wait until everything is already perfect.

Chapter 6

Quickly Adapt to the IIoT Wave

The move towards the IIoT is definitely an opportunity to seize as quickly as possible since it will allow you to increase your production. On the other hand, it has been said that the first companies to make this shift will be approximately 3 times more successful (10% vs. 27%) in combining revenue gains and cost reductions than those that will remain passive by 20201 .

Digital technology continues to become more and more important in a wide range of manufacturing sectors, to varying degrees. While the consumer goods industry has a digital penetration rate of 31%, the automation and assembly industry has a 32% digital penetration rate. These figures therefore confirm the strong interest in IIoT.

"Data is the key. The easier it is to access crucial information, the more efficient we tend to be"

- Billy Dedes, PresidentCentral Bernard

Chapter 7

Choose a Turnkey Solution

The Smart Factory Analytics solution allows you to connect your production line in order to automatically extract data in real time. By connecting all your equipment, you will be able to accurately track the movement of a bottleneck. So, you can quickly take action to bring your production back to its highest point of optimization.

Having an overview will help you make better decisions every day. By connecting as much of your equipment as possible to intelligent software, you will achieve a greater efficiency in your factory and increase your overall ROI. Ultimately, the IIoT helps industries to become more digital, with the aim of improving processes through interconnectivity between machines and labor in real time, which then leads to productivity gains.

To highlight the extent to which the IIoT will benefit companies that have seized this revolutionary wave, here are some interesting figures:

35% of companies that are moving towards the industry 4.0 will grow by 20% over the next five years.
43% of companies making the shift to the industry 4.0 expect to reduce their costs by more than 20% over the next five years.
56% of the 4.0 companies plan to increase their efficiency by more than 20% over the next five years.

Chapter 8

Statistics of different industries after the adoption of the IIoT

Woodworking industry

20% improvement in productivity after 6 months

+11% of uptime after 6 months

-16% of direct labor cost after 6 months

Metal Industry

+17% of productivity after 4 months

-33% of the number of stoppages after 4 months

+15% of uptime after 4 months

-15% of the direct labor costs after 4 months

Bottling Industry

-7% of direct labor costs

-49% of downtime after 2 months

Consumer Goods Industry

+30% of productivity after 2 months

-25% of downtime after 2 months

Plastics Industry

+15% of uptime after 6 months

+34% of the Overall Equipment Effectiveness (OEE) after 6 months