Manufacturing IT: The path to perfect production

To always have the right answer at hand, you first need one in production: Transparency - at the touch of a button. Together with the Responsiveness it is one of the primary targets that a company must pursue. Transparency and responsiveness are in turn the prerequisites for Economic efficiency - the third target variable in the magic triangle of perfect production. Only when the processes of a manufacturing company can be controlled via fast control loops can efficiency be increased and thus competitiveness ensured.

Small cause, big effect

A practical example illustrates the relationships: A tiny metal chip in the oil can cause an oil pump to fail. As a result, the bearing is damaged and causes the complete failure of a machine. The machine comes to a standstill, the order is not completed on time and, in the worst case, a penalty is imposed because the delivery date is exceeded. This is still the way things are in many factories.

In transparent, responsive and economical production, the scenario would be different. The shift supervisor would only have to take a look at his production IT to see which machine he can switch to in the event of a malfunction (transparency). Thanks to system support, he could reschedule orders with just a few clicks (responsiveness) and meet the delivery deadline (cost-effectiveness). It gets even better: if the possibilities of modern manufacturing IT were used, the machine would never have broken down in the first place. Predictive maintenance is the magic word. The seamlessly recorded machine and process data could be precisely analyzed to proactively maintain machines and avoid unplanned downtime.

Four building blocks of perfect production

The case described shows that the goal of perfect production is inevitably linked to digitization. But for the successful transformation to a smart factory, it is not enough to install the latest production equipment and a manufacturing execution system (MES). The framework conditions must also be created to use manufacturing IT effectively. A holistic approach is therefore dedicated to the following aspects:

1. Value Stream Management 4.0
2. Lean value streams
3. Lean support functions
4. Sustainable process improvement

These four building blocks have proven their worth in helping companies achieve perfect production step by step. They aim to identify weak points and avoid them in the future.

Module 1: Value Stream Management 4.0

The first module essentially comprises value stream mapping 4.0 and value stream design. It is therefore used to record, analyze and redesign the processes. In addition to the manufacturing process and the material flow, special attention is paid to the information flows and the planning processes. After all, they control the manufacturing processes, where every minute counts. The findings of the 360-degree analysis are presented in a value stream diagram. In order to be able to quickly evaluate the information visualized in this way, a lead time diagram is created and the process efficiency is calculated as a measure of the cost-effectiveness of the overall process. For the area of information flows and planning processes, for example, the number of tools used and the degree of digitization are determined.

Now the facts about the processes in production and the production-related environment are clear. Questions about the manufacturing process, the information flow, the planning process and the (IT) tools used can be answered and the next steps derived from them: a value stream design with a target concept and a roadmap to implement the target concept.

Building block 2: Lean value streams

The second module aims to establish lean production processes, i.e. to consistently implement the target concept developed in the first module. This goes hand in hand with eliminating waste. The seven common types of waste, based on Taiichi Ohno, the former production manager at Toyota and founder of lean production, include: Overproduction, waiting, transportation, inefficient machining, warehouses, redundant movements and defects. These can be supplemented by the lack of employee involvement and motivation, and waste caused by information interfaces. After all, the active involvement of employees is the be-all and end-all for the successful implementation of lean value streams.

Building block 3: Lean support functions

The third module deals with the production-related support functions, i.e. rough and detailed planning and their integration into the production processes. A striking example is the optimization of planning: Production is often roughly planned in the ERP system on the basis of calendar weeks. Detailed planning for workstations and machines is then carried out to the day or shift on the planning board in the foreman's office or in Excel. It is obvious that transparency and responsiveness in the sense of fast control loops fall by the wayside. Since actual capacities and backlogs are not taken into account, production orders or deadlines are created that are simply not feasible. An integrated planning tool of a Manufacturing Execution System provides a remedy. It helps to create transparency and responsiveness. After all, in perfect production, not only the material but also the information must flow.

Building block 4: Sustainable process improvement

Once the processes have been streamlined and digitized, the fourth building block is about implementing the changes sustainably in the company and successively achieving further improvements. And this is done virtually on the side in day-to-day production. It is important to define goals according to the SMART method and to select the right key figures to measure the achievement of goals. This is followed by the establishment of control loops and cyclical auditing. This ensures that processes are adapted to changes in a timely manner and that the change processes generally do not disappear from the agenda again without the potentials being exploited.

MES as the basis for the Smart Factory

In the four building blocks of perfect production, the Manufacturing Execution System plays an important role as the basis for the Smart Factory. Because if the relevant lean methods are flanked by suitable MES functions, this is the best prerequisite for making good progress in the project. Since an MES records manufacturing data in real time, it is ideally suited for implementing short response times and fast control loops in production. The example mentioned at the beginning with the metal chip in the oil and the resulting machine failure shows how important it is to detect malfunctions quickly and take countermeasures in good time. The prerequisite for this is permanent monitoring of production - from the deadline situation to the machine and tool status to personnel availability and product quality.

The five most important MES tasks to realize fast control loops are:

• Monitoring of production in real time: In order to record the data automatically, machines and other peripherals are connected directly to the MES via interfaces. However, manual data acquisition is also possible. Store floor data collection provides a quick overview of the current schedule situation, while machine data collection contributes information on the status of machines and systems. The operator can see at a glance in the system whether the machine is running (green) or not (red) and can react to a standstill without losing time. For planning purposes, for example, personnel capacities and the qualifications of the employees are also immediately visible.
• Short-term reaction to events: Escalation management makes it possible to react to events at short notice. In addition to the machine malfunction already mentioned, exceeding or falling below the limit value of a quality characteristic can also lead to the quality representative being notified. Or the setter is informed as soon as the tolerance limit of a process value is violated. In the event of a machine stoppage, an MES can be used to quickly simulate the alternative actions and reschedule the orders by drag-and-drop. The same applies to personnel planning.
• Calculation and visualization of key figures: No process improvement without key figures: A Manufacturing Execution System is the ideal tool for calculating and visualizing key figures. It can not only display the standard key figures such as efficiency, OEE index or adherence to delivery dates. For example, process efficiency and lead time can also be determined from the recorded data. In addition, data can be compared over different time periods. Each company level receives the information it needs.
• CIP support: The best way to work on avoiding malfunctions or improving unstable processes is with the help of an MES, in line with the continuous improvement process (CIP). The PDCA cycle can be accelerated considerably because the data is available at the push of a button. Thanks to the greater level of detail of the information, more potential can be uncovered and improvements can be realized more quickly.
• Data provision for ERP systems: An MES reports the relevant data from production to the higher-level ERP system at defined time intervals - and thus closes the control loop. Based on such data as the actual capacity utilization, production is regulated in the medium to long term. The information is also used for commercial post-calculation and maintenance of master data.

When all four building blocks of perfect production have been implemented and a Manufacturing Execution System realizes and organizes fast control loops, you've made it: You're a whole lot closer to the three target dimensions of transparency, responsiveness and efficiency in production. You make optimum use of the potential of your systems, know the most frequent causes of malfunctions and know which machine you can switch to if a small metal chip in the gear oil upsets your production planning.

Author:
Jürgen Rieger is a member of the management board of Perfect Production GmbH and author of the reference book "Die perfekte Produktion. Manufacturing Excellence in the Smart Factory." Perfect Production Ltd. accompanies manufacturing companies on their way to perfect production and is part of the MPDV Group.