factory of the future - memex inc.assets), with oee initiatives generally ten times more...

Manufacturing Execution Real-time Lean Information Network1

Factory of the Future

Shop Floor to Top Floor Information - in Real-Time

Presentation available at www.memex.ca/CMTS 2013 - Mazak

Manufacturing Execution Real-time Lean Information Network

Introductions

David McPhail

President & CEO, Memex Automation

2


Agenda

3

• Significance of the standard, background

information, and how it will drive the Factory of the

Future.

• “The Factory of the Future”

(What / Why / How / When)

• The value proposition of monitoring your shop floor.

• Summary – More information / resources

• Question & answer session

• Wrap up

3:00

3:40

4:00


Topic

4

Significance of the MTConnect standard

and how it will drive the Factory of the

Future.


Significance

5

“MTConnect will be more important in the

21st century than the CNC was in the 20th

century.”

John Byrd, former president of Association

Manufacturing Technology, www.amtonline.org

www.MTConnect.org


BEFORE MTConnectThe Classic (N-1)2 – N Problem

打開和免版稅將永遠贏得市場

الفوزالملوكوحرومنفتح

السوقفيدائما

Offene und immer gewinnen den

Marktplatz

Ανοικτή και θα κερδίσει

πάντα την αγορά

Åpen og vil alltid winthe

markedsplass

App

A

App

B

App

D

App

E

App

C


AFTER MTConnectThink of MTConnect as a Protocol Pipe

Connecting Manufacturing Equipment to Applications

打開和免版稅將永遠贏得市場

الفوزالملوكوحرومنفتح

السوقفيدائما

Offene und immer gewinnen den

Marktplatz

Ανοικτή και θα κερδίσει

πάντα την αγορά

Åpen og vil alltid winthe

markedsplass

What

information

would you like

from me?

What

information

would you like

from me?

What

information

would you like

from me?

What

information

would you like

from me?

What

information

would you like

from me?

App

A

App

B

App

D

App

E

App

C


The 3 “A”’s of MTConnect

• Adapter – A software or hardware component that is installed in, and

connects to, a Device (In this case a Mazak Machine Tool)

• Agent – An open source software component that connects to the

Adapter and implements the MTConnect HTTP protocol, provides

XML Generation, and the MTConnect protocol (Royalty free, Data

Dictionary, Extensible)

• Application – A third party software consumer application that

accesses the Agent to perform a task such as that

displays metrics / Dash-boarding / MES / etc.


MTConnect White Papers

Download from:

www.MTConnect.org


mainframes

1960

batch computing

time sharing

minis

distributed

computing

networked

personal

computing

micros / PC’s

open systems &

client servers

cooperative

computinguniversal

computer

connectivity

ConnectedManufacturing Model

20001980 19901970

Connected Manufacturing Evolution

The technology is here today, the tools are readily

available and cost effective

2010

Technological Shift

Internet

Universal

Machine

Connectivity

“Following the computer and the Internet,

every machine tool will become a node on

the network creating greater efficiency.”


Factory Of the Future – WHAT is it?

Manufacturing Execution Systems

The way of the Future Work Order Scheduling and

Results Reporting

Direct To / From ERP

Connecting the Shop Floor to the

Top Floor affords many benefits

such as Product production lifecycle

visibility, Accurate scrap and reject

counts, Actual v. Planned production

time, Costing, capacity utilization,

etc.

Evidence Based Real time data

collection at each machine and

Discrete Process on the shop

floor

Drives all facets of Manufacturing

Operations Management such as

Scheduling, Costing, Root cause

analysis, On Time delivery,

Production Efficiency, process

visibility, etc.

Process Improvement , Benchmark

Analysis, Corrective Action, Repeat

Data collected can identify constraints and

drives the circle of continuous improvement and

lean process changes, leading to greater

efficiency and profitability, affords immediate

corrective action and vetting of results quickly,

objectively, and sustainably.

Cost containment / Reduction - Ongoing

Drive costs out of the manufacturing

process, leading to higher capacity utilization

and higher profits for the same level of effort

WIP, Raw Material, Valuable

Tooling, and Finished Goods

Tracking with RFID & ERP

Allows real time visibility of WIP,

Raw Material, Specialized Tooling

(Jigs and Fixtures), and Finished

Goods to all stakeholders via upload

to ERP, and visibility in MOMS /

MES system

Horizontal & Vertical Integration

Vertical: Shop Floor To Top Floor, Integrating and

optimizing all equipment and processes, from

machine sensors to the ERP system.

Horizontal: Across the Complete Plant,

Integrating, communicating and optimizing the

production operations.

© 2013 Memex


• Increase throughput through

collaboration and “Evidence

Based Data” collection and

review, feeding a culture of

continuous improvement.

• Increase awareness and visibility

of equipment and personnel,

leading to increased utilization of

these important assets.

• Increase Income From Operations

(IFO) sustainably and objectively,

for the short, medium and long

term, 20% to 60%.

• To develop AND maintain a

leadership role in Manufacturing,

adopting cutting edge technology

and best practices to stay ahead

of the curve, whatever the

challenge(s) ahead

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Factory Of the Future – WHY do it?

© 2013 Memex


• Involve and empower the

Operator by giving them the

tools to be part of the solution,

instead of simply pointing out

there is a problem.

• Initiate and sustain a culture of

teamwork as it relates to

continuous improvement by

delegating resources, setting

achievable goals, and vetting

progress regularly, adjusting

goals upwards over time.

• Adopt technology that connects

the top floor ERP system to the

shop floor asset(s) (equipment

and personnel) bi-directionally,

affording unparalleled visibility

and transparency of shop floor

processes.

13

Factory Of the Future – HOW?

ERP

SHOP

FLOOR

© 2013 Memex


• With a 10% - 50% Sustainable

increase in capacity utilization,

which translates into a

significant increase in IFO,

companies who adopt the

philosophy of the Factory of the

Future experience investment

returns usually measured in

months.

• Utilizing a proven solution, and

with management setting the

course for systemic cultural

change, the risk of project failure

is virtually eliminated.

• The time is now….. Money is

being left on the table (locked /

lost in the past) each day that

the “Factory of the Future”

remains a concept, not a reality.

14

Factory Of the Future – WHEN?

© 2013 Memex


Paradigm Shift (Current v. Future)

Factory of the Future:

- Connected ERP / Shop Floor

- Work order tracking

- Support the Internal Customer (Paradigm Shift with demonstrable and

sustainable benefits – Details to follow)

- Monitor Welding / Assembly (And other manual processes)

- Full shop floor visibility / transparency (All Plants and Processes)

- RFID (Assets / WIP / PM’s)

Factory of the Present:

- No Connection between ERP / Shop Floor

- Limited RT Data

- Minimal RT collaboration between

operators and management


• Definition: A paradigm shift

where the Operator is the central

focus, equipped, empowered,

and supported by all the

required resources of the

organization, to maximize

equipment utilization

• Guiding Precept: If the

Equipment is producing it’s

product at optimal efficiency, the

company has Sales capacity for

the finished product, and the

finished good is sold at a profit,

THEN the higher the throughput

(equipment utilization), the

greater the companies profit$

16

“Support the Internal Customer”


“Support the Internal Customer”Concept

Qualit

y C

heck

Tooling Help

Engin

eerin

g

Relief Req’dIFO


“Support the Internal Customer”Tools required from Memex

• Login / Logout of support Staff

via Current Tablet application.

• Email support from the Tablet

application via operator request

to the requested support

personnel

• Visualization tools to depict

exactly what the status is on the

shop floor of each monitored

asset to management, operators,

and support staff

• Utilize the report generator and

auto report scheduler to send

out utilization and production

reports regularly to review daily

and weekly progress opposite

set benchmarks.


The initial Foundation for this concept:

OEE = % Performance x % Availability x % Quality and is a distillation

of the Six Sigma Pinciples of loss

"Small improvements in OEE can result in big improvements to profitability, a

10% improvement in OEE can result in a 50% improvement in ROA (return on

assets), with OEE initiatives generally ten times more cost-effective than

purchasing additional equipment."

“OVERALL EQUIPMENT EFFECTIVENESS

A Powerful Production/Maintenance Tool

for Increased Profits”

R. C. Hansen, Industrial Press,

New York, NY 2001

The Basis

1% improvement in OEE generates a

2% increase in Income From Operations


The 6 Big Losses

The improvement opportunities are always in one of the

following Six Sigma “buckets”

• Breakdowns - Pro-active operator and trigger emails

• Setup - Modal capture, e-alerts,

• Downtime - Utilization and down time reasons (Pareto)

• Speed loss - in-cycle speed vs. product standards

• Small stops - Machine state monitoring and reporting

• Quality - Identified reject reasons captured by Merlin

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Value Proposition

• Production improvements in the 10% - 50% range*

– Financial Profit - EBITDA;

10% Operational improvement

20-60% Profit improvement

Sales @ current & full capacity

– Breakeven ROI in < 3 months

• Real-time machine visibility + OEE numbers

• Operator Productivity increases

• Reduce Downtime

• Minimize Rejects, Improve Quality

• Root Cause analysis

• Value stream analysis

• Labor productivity tracking

• Fast to deploy, Quick ROI, Lowest TCO

• Benchmark scheduling & value streaming

• Automatic data collection from machine

21

21%62%


… Find Hidden Capacity

Improve Uptime

• Minimize Downtime due to unforeseen breakdown

• Predict when a machine will fail

• Online diagnostics for machine up and running faster

Reduce Costs

• Embed Maintenance Records & Alerts

Improve Profitability

• Analyze uptime for hidden capacity

• Identify Bottlenecks to improve throughput.

Improve Quality

• Links to Quality Control

• On machine inspection & In-line Correction

OEE (Overall Equipment Efficiency)

= Availability x Performance x Quality

= % Utilization x % Std Rate x % Yield

Shows group or plant output as a % of maximum capacity

World Class = 85% (= 95% x 95% x 95%)

85%

59%

0%

20%

40%

60%

80%

100%

Theoretical

Availability

Actual

Availability

UPTIME ANALYSIS

Maintenance

Setup

Idle

Feed Hold

Dial Back

Productive

Maximize Utilization

… Is there more?

“Gut Feel”


TOC Productivity Analysis

• Identify Constraints

– Production Counts

– Scrap & Reject Counts

– Run/Cycle Times

– By Shift, work order, product

• Improve Throughput

– Hidden capacity accurate start/end times

uptime analysis - cutting/idle

breakdown analysis

– Quality improvements

• Increase Profitability

– Focus on bottleneck throughput

– Accurate data allows for Improved employee decisions

23

Where are my

bottlenecks?

How can I improve

my bottom line?

How can I

produce more?

3

1 2

If you can Measure it – then you can Manage it

TOC = Theory Of Constraints


Productivity Increases

Real-time monitoring of every production

machine prevents problems from occurring.

Eliminate manual data entry.

Schedule and track job progress at individual

machine level...in real-time.

OEE Software is scalable and cost-effective

you install only the capability you need.

OEE Software is practical because it was

designed by and for manufacturing users.

Connect to any machine on the shop floor.

Real-time display screens Data Tables as you

run your business – your own KPI or OEE.

24

OEE Benefits



Determine real Job Standards to help improve your Job costing.

Analyze causes for Downtime and Rejectsthen eliminate them.

Preventive Maintenance scheduling based on real run time and cycle count data, rather than calendar.

Visual, “drag and drop” production scheduling and Job tracking based on actual shop floor conditions.

Machine operating history in detail with a “paperless” Strip Chart.

Shift scheduling the way you run your plant.

Monitor production schedule remotely or in multiple locations.

Real-time Process Variable monitoring prevents problems and can control complex machines with programmed logic.

Analyze operator and maintenance staff performance.

25

OEE Benefits




Improve manufacturing productivitywith real-time monitoring of production.

Minimize unproductive labor with automated data collection and reporting.

Improve inventory accuracy

Give accurate delivery dateswith visual production scheduling and job tracking.

Identify problems fast, before production or quality suffers, with real-time displays.

Link shop floor to any ERP - business system two-way link, to improve accuracy of information.

Real-time Machine Detail lets you zero in on problems.

26

OEE Benefits


OEE = % Performance x % Availability x % Quality


Productivity News

• “Productivity growth is the cornerstone of economic growth

and wealth creation.”

– Fraser Institute

• “Much lag in productivity can be traced to a lack of ICT

(Information and Communications Technology) in companies,

and can account for 60% of productivity gap.”

– U of T & London Business School

• “Manufacturers often lack the metrics required to assess their

organization’s productivity, and fail to make these measures

visible even when they’re available.”

– Grant Thornton, Profitability via Productivity paper.

Productivity directly affects Profitability

27


Reduce Unplanned Downtime

Reduce Setup and Changeover Times

Better Management of Resource Allocation,

Planning and Scheduling

Operator Productivity Increases

Efficiency with Automated Data Collection

Better Root Cause Analysis

Improve Quality, Minimize Rejects

Identify Bottlenecks and Constraints

Improve On-Time Delivery

Manage Operations Pre-emptively & Proactively

(instead of Reactively) by Real-time visibility

Measurably Improve Profitability

Productivity Increases of 10-50%

© 2013 Memex

Summary – Wrap Up


Contacts for

Questions and Answers

29

David McPhail phone: 905-635-1536 email: [email protected]

John Rattray phone: 905-635-0590 email: [email protected]

Information about and visit www.mazakusa.com

Information about visit www.MTConnect.org

Information about Memex Automation and visit www.memex.ca


© 2013 Memex Automation Inc., 3425 Harvester Road, Suite 200, Burlington, Ontario, Canada L7N 3N1 (866) 573-3895

Thank You

factory of the future - memex inc.assets), with oee initiatives generally ten times more...

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