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4 Ways You Can Use Metrics to Improve the Production Process and Increase On-Time Delivery

In the March 18th issue of Tooling & Production, we featured FACTIVITY's Manufacturing Execution Software (MES), which collects data from the factory floor and provides metrics needed to implement lean manufacturing practices. Now, here are 4 specific examples of how you can utilize these metrics to improve your Overall Equipment Effectiveness (OEE).

As mentioned in March, there are a few steps needed in order to successfully use any or all of these reporting (Metrics) tools in a useful and productive manner. Once a person of authority (Process Manager) is in place then he/she can set-up their own approach to using Factivity's data. The following are four suggested approaches of applying metrics to performance improvements.

Factivity's Job Cycle Time Analysis can help decrease wait times at work centers.



First step is determine what areas in the factory need to be investigated for possible improvement. For example, is there an indication currently that jobs that are released are waiting too long (See Work Order ID 1003692 in the report to the left) before getting into production; or that jobs are for some reason waiting longer than appropriate at work centers?

Using the data from a Job Cycle Time Analysis can identify these "queue" times from work order release until the first operation becomes active; as well as the total cycle time for the entire time the production order is on the floor, on a job-by-job basis.

The Queue Time Metrics reports might be a help in identifying work centers with long wait time as measured by total amount of time the jobs at each work center are waiting at the operation and total expected scheduled run time for each job waiting at the operation (The total amount of scheduled work presently sitting in queue at the operation).

The software can help evaluate performance at an operation.



Second is to look into the operation to see what sort of work stoppages have affected the On Time Delivery. Capture the total problem/down time during each week. Compare the last four-week-period to see if there is some level of consistency from week to week.

Work stoppages should be evaluated regularly to investigate whether the loss of time is episodic in nature or one that continues to show up in the metrics. Regular work stoppage time can then be analyzed by "type" from the most to the least time. Discover if large amounts of lost time are occurring as a result of one particular type of down time situation. If so, then maybe a deeper dive is required to evaluate the person/part/ resource (machine) associated with this down time condition to help find the source of the problem.

Third, is the evaluation of scrap loss and the ramifications of losing production time to scrapped production/parts. This may or may not be a factor affecting On Time Delivery but it should be evaluated.

OEE Metrics Dashboard helps identify irregularities in efficiency.



Again, scrap reason should be evaluated weekly for four weeks to determine the consistency, if any, with scrap. Evaluation can be made, like above, for down time with person/part/resource (machine). However, the resolution to lost time with scrap might be accomplished by the use of FACTIVITY "alarms" which can inform a floor supervisor/manager of excessive scrap in real-time to minimize the effect scrap has on lost time and untimely On Time Delivery.

Remember, Metrics are an after-the-fact analysis and are not designed and not a good real-time method to improve the timeliness of corrective action.

Fourth, is the evaluation of performance at the operation. That is, are your operators and assets (resources) working at the expected rate? The expected rate is usually held in the Standard in your ERP System routing file and FACTIVITY can measure the actual performance both in Cycle Time (commonly used in OEE calculations) and Efficiency for each operation of each and every order.

Once a Process Improvement Manager is in place and working regularly on attacking wasted (non-value added time), the OEE Metrics Dashboard (above) can help identify irregularities that might otherwise be undetected and also provide the basis for Plant-to-Plant performance comparisons.

Metrics are an after-the-fact analysis and are not a good real-time method to improve the timeliness of corrective action.



Lastly, the KPI Metrics provided by FACTIVITY are not the only way to get at valuable information from the FACTIVITY data files. In addition, this same information can be output directly to several pre-formatted Excel Spreadsheets with the intent on allowing management to massage the data as needed in this ubiquitous analytical tool.

On the right is a snap shot of some of the Spreadsheets and although the image is hard to read, the columns include important process improvement information such as OEE, Labor, Scrap, Down Time and Job Performance (Cycle Time and Bottleneck).

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