How do companies maximise their capital returns and supercharge their production efficiency programmes? The philosophies and approaches of Lean and Sigma are driving industry forward but how can we accelerate the journey of continuous improvement? Lean Sigma techniques need to be fully integrated and imbued into the very fabric of an organisation and hard wired into all of its processes. We need more than just Lean thinking; we need to have real time thinking and performance.

"Real Time Thinking" provides instant knowledge and the potential for instant reaction or intervention.

There are 12 principles which make "Real Time Thinking" essential for maximising return on investment. Real time production efficiency represents a new frontier in production efficiency improvement techniques. The 12 principles of Real Time are:

Data Quality ….

The quality of data collection and real time analysis is key to driving up production efficiency. The quality, integrity and immediacy of data are often overlooked and frequently misunderstood. If the data set has weaknesses then no matter what analysis is performed, the outcomes are going to be less than satisfactory. Data collected historically, say at the end of a shift by the operator filling in a form, is limited in its consistency, accuracy and reliability. Such data allows false pictures to form with inaccurate and therefore ineffective analysis of the actual performance of a manufacturing cell and an inaccurate Overall Equipment Efficiency (OEE) value being conveyed.

The plain truth is that any cell or manufacturing unit claiming world class levels of OEE of say 80% plus, who are using manual, historical and batch analysis and methods are almost definitely fooling themselves. The process is likely to be riddled with problems of over estimation of the positive, papering over the cracks with highly inaccurate actual performance.

Manual Collection Looses Integrity ….

For many manufacturers, allegedly accurate data from the factory floor is collected manually with reporting through spread-sheets via respective computer terminals. Much of this data may be entered into the system 8 to 48 hours after execution and can be subjective and inaccurate. The supply chain or other supporting streams use data that is neither timely nor accurate. This inaccuracy and variability of shop floor data affects the company’s ability to react to changes in product throughput or customer demand.

Immediacy Brings Integrity .…

The immediacy of real time data monitoring is very powerful at removing basic delays and negative inertia. Historical and subjective monitoring of any production related data is like looking in a cars rear view mirror; it is not immediate and does not enable direct intervention when the problem occurs - leaving a missed opportunity. As the saying goes my aunt has never been in many accidents but sees a lot in her rear view mirror! She assumes that her driving is fine and does not focus on the real problem.

When the report eventually finds itself on the production managers desk, it may get read that day, maybe that week. More often than not there will be other crises to deal with, board reports to do, supplier problems, staffing and so on. All the daily management responsibilities get in the way avoiding intervention and missed opportunities for efficiency improvement. Real-Time is immediate, action orientated and is impactful.

Immediacy Brings Intervention ….

To really accelerate the Lean journey operators and supervisors need up-to-the minute information in order to optimize production. Real Time OEE (Overall Equipment Effectiveness) monitors how machines, production lines or processes are performing in terms of Availability, Speed (Performance) and Quality to provide accurate performance information.

It is estimated that plants still waste up to 40% of their productivity through

unplanned stops and interruptions, speed losses and quality defects. If this information is made available in real time then the operator, the supervisor, the production manager or maintenance manager can intervene immediately with instant impact on waste and production efficiency.

Avoids Personal Agendas ….

Everyone wants to be a winner, so … people will select the measurement criteria that suits the environment and historical working practices. This creates a subjective reporting environment which rarely identifies the true causes of waste and inefficiency. The measurement criteria will naturally follow those criteria suited to batch, historical and subjective means, hence inappropriate for the job at hand. Complex readings and variables that impact quality, the speed of the machine and rejects will be missed. In the collection of data memory interpretation is relied upon which is tainted by personal incentive and team pressures. This is only natural.

So what can be done? The solution is to collect, monitor and analyse data real time. Real time automatic data capture enables the right data to be collected at the right time with accuracy and without subjectiveness. Real time will provide a comprehensive set of variables and provide a more insightful reflection of the production process by providing the accurate OEE performance of your assets employed.

Comprehensive Set of Measurements ….

Lean Sigma and other continuous improvement programmes often start with the basics being monitored, which is ideal for getting simple buy in and engagement of all the people involved. This initiates the cultural change and learning curve for all team members. It is something to build upon and get some readily understood quick wins. However this approach is often supported with blind investments in quality control education and lean philosophies without measuring the actual outputs.

This strategy will provide some improvement, however this in no way will provide the means to maximise asset implementation as there is no reasonable way of evaluating return on investment. Whether or not you have better qualified and trained staff if they do not have improvement targets with measurable outcomes this will lead to a lack of focus and sub optimal performance. This way of thinking, is no way to "maximise" your production efficiency programmes.

What is needed is a more comprehensive set of measurements that does focus the effort in the right place. If you do not measure something then you will miss it and you will be loosing the ability to focus and improve. When you hard wire real time data analysis it forces you before you install to think of your data collection strategy. When implementing Real Time data collection a specific strategy has to be considered. In that process the full impact on the organisation and therefore a comprehensive set of measurements have to be considered and implemented. This strategy will need to incorporate a scaleable implementation plan as the results of the findings will inevitably bring operational and cultural change. What is the most comprehensive set of measurements that can give me the full picture of the production process and measure the true OEE of a cell or a line?

An even more obvious miss will be the question of what data do I need to measure that can be used or passed on the other parts of the production process in-house or even to another part of the value chain outside of your organisation? This may be something that is valuable for the supply chain or it may be something that is value to the demand chain where the greater savings may be made.

Make Things Visible ….

If you can’t see it you can’t fix it! Only when something is measured can it be analysed and acted upon.

Historical and batch analysis can often hide itself under a pile of papers on the production managers desk, real time brings the data to life. Visibility is integral to real time monitoring; real time sharpens the insight and the understanding of the real issues. A lot of production efficiency issues are solved with a matter of common sense rather than become masked under a cloud of other extraneous issues and criteria given credence through batch and historical analysis.

Visual Re-enforcements ….

Leading real time monitoring systems such as ABB’s RealTPI are able to provide instant visual communication and are flexible enough to be able to provide this in a wide range of outputs. This means that visual aids can be developed differently and tailored for each target audience in the production team from the operator right through to the board room.

All these elements help to accelerate the maturity of the culture and behaviour of all the stakeholders in the production value chain.

By using real time intervention as opposed to historical analysis techniques Dow Corning in Belgium were able to save 8% on their production costs. While at the same time increasing availability, production speed and output quality of the equipment, over a period of three years, Dow Corning was able to gain one entire month of production.

A Leading Pharmaceutical company has used Real Time with tangible success.

Real time visibility can be provided to suit the user or organisation, by various methods, via mobile phones, pagers, handheld terminals, board room computers, flat screen notice boards and various types of operator information panels.

Real Time Analysis ….

Real time analysis to set criteria can short circuit to planned interventions and accelerated solutions to waste, bottlenecks and inefficient practises.

Real Time data provides the facility for analytical processes to be carried out in line. This capability provides OEE, Route Cause Analysis (RCA) and accurate Total Preventative Maintenance (TPM) activities to be applied to the production environment. All of these can be implemented with the additional benefit of automatic real time reporting replacing subjective manual reporting scenarios.

When OEE indicates poor plant performance, RCA is utilized to determine what the problem is and where it is located so the corrective action can be taken. TPM is a process to adjust production equipment procedures with the aim of improving efficiency. It eliminates inaccurate, inconsistent, defective, and laborious manual logs.

Real Time provides the facility for RCA to be carried out with accurate tuning and event log management, creating an objective blame free view to be taken in resolving problems that are reported upon.

Dynamic PARETO charts can report the cumulative breakdowns by category, type and/or machine during the selected time period. It can provide the ratios between the different causes of breakdowns in the line and classify them in descending order by cumulative time. For each breakdown PARETO charts can show cumulative time and number of breakdowns, as well as percentages of the category and of the total time period. Chronograms can then identify the state of the machine and provide reasons for machine stoppages (i.e. planned downtime or breakdown) during a sequence of events.

When real time data collection is implemented it provides an accurate recording of the "Actual" data and not something that may or may not have occurred in the past. Therefore if this information is used in TPM systems a precise diagnosis real time and against trends can bring step function improvements in production output and efficiency through more up time and reduced unplanned stoppages.

The obvious advantage employing Real Time is that the OEE of the operation can be calculated as a true accurate figure. This figure will enable the enterprise to calculate the true ROI on the employed assets. The OEE figure also provides the true capacity of the assets that are currently employed giving clear insight to forward investment requirements.

With this level of analytical power, real time feedback allows corrective action to be taken in shorter periods of time, thereby increasing OEE. This will develop a better understanding of the production potential of existing plant equipment and accelerate the journey of continuous improvement in real time.

Accelerate Culture Change ….

Real time intervention can also have a dramatic effect on the rate of change of less tangible but crucial elements of the production process. It is the immediacy, transparency and integrity of real time monitoring information that can impact the production team’s perception and behaviour.

Continuous improvement is a journey but it is the rate of culture change and speed of improvement that is the key to success and often even the very survival of a business or production unit.

Real time also brings stability and consistency to the management of efficiency improvements. It gives the overall programme the gravitas and credibility of the objective data that is provided.

Result setting is a closed loop. Once set they cannot be miss-used or ignored. The beauty of real time is that you have to think of all aspects of the data and then hard wire them into your operation.

You can even set parameters of performance and "what ifs" with pre-determined and automatic interventions. This could be an instant stoppage, an instant communication to the production management and directors, an instant visual aid to the operator or an automatic communication to another part of the production value chain. When this is carried out automatically along with an with instant execution of the remedy you obtain instant benefit.

The opportunity for saving is as perishable as an aircraft seat to an airline, once the aircraft doors are shut the revenue from that empty seat is lost for ever and this is the case with many opportunities to save costs. Instant action provides instant efficiency savings through closed loop decision-making.

A real time DMAIC (Design Measure Analyse, Improve, Control) will accelerate the rate of change and improvement and will increase the rate and quality of connectivity through the total value chain.

Over 20 years ago it took an engineer a quarter of a year to do a Design of Experiments manually, now with automated analytical tools a number of tasks can be carried out in a day. Moving to real time monitoring can increase this exponentially with the results and influence spreading rapidly across the internal team and other partners in the total production value chain.

Connectivity To Customer & Supply Chain ….

Most manufacturing companies have implemented software programs and procedures to monitor and optimise its supply chain. These programs are designed to reduce raw material (inventory), work in progress, and finished goods inventory.

To be successful, and in some cases survive, manufacturing companies require real-time data from the factory floor that reports on quantity of raw materials used, yields, scrap rate, and production output. This data allows the company to know the current status of all of its production orders so it can meet the needs of its customers. Having this information available in real time allows timely and accurate communication of this crucial information.

Real time data can be used elsewhere for connecting to the demand chain. Changes in demand patterns, flexibility in design and other innovations are possible when you have real time data. A more informed production value chain becomes a more flexible production value chain and therefore more able to adopt to ever changing customer needs.

Real Time Performance Focus .…

Manufacturing companies are constantly striving to improve performance by increasing output and yield while reducing operating costs. These companies traditionally have made large investments in capital equipment to meet the demand of the market place. The operation of these assets must be optimised so they can maximise returns on the capital employed.

Real time is not quality management for the sake of it. It represents the principle that you should always focus on specifics and projects that maximise their ROI against tangible measured results. Real Time provides more certainty and has immediate impact on production efficiency and ROI for assets employed.

The importance of optimising return on assets is seen in all manufacturing companies across the spectrum of manufacturing industries.

It is estimated that plants still waste up to 40% of their productivity through unplanned stops and interruptions, speed losses and quality defects. In today’s fast paced, collaborative business world, this loss of value can be the difference between a company’s success and failure.

Summary .…

If it is time for you to take action to improve efficiency, reduce costs and accelerate your return on production investment, please visit "The Sustema Challenge" on our website www.sustema.co.uk . Or you can call Duncan Pearson on +44 (0)24 76360211 for an initial chat or to arrange a free, no obligations consultation.