6 Step Process to Improving OEE in Your Factory
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As business rebounds, manufacturers are once again wrestling with an industry-wide talent shortage. As a service to our customers, we recently asked an expert to share some proven strategies for making—and keeping—good hires.
These days, manufacturers are trying to do more with less, operate more efficiently, and make informed purchasing and management decisions. But in order to do that, the management team must know what’s happening throughout the factory at all times—and why.
Good news! According to several recent studies, it appears the manufacturing industry is rebounding from the depths of 2020. Although COVID-19 is far from over—and for most manufacturers, revenues have yet to return to pre-pandemic levels—earnings are up, confidence is up, and spending is up overall.
As they do every year at this time, manufacturers are engaged in strategic planning for the new year. But, aside from the timing, it’s hardly business as usual. 2020 was a year unlike any other, and many go-to strategies no longer apply. As a result, industry leaders are carefully planning how to best navigate the changing business landscape to ensure a successful 2021.
If you haven’t already put a machine monitoring system in place, you’re undoubtedly thinking about it. As the saying goes, if you’re not making chips, you’re not making money—and according to an Amper survey, machine utilization in factories averages just 26%. There’s plenty of room for improvement—but only when you know where to focus your efforts.
Doing more with less—that’s exactly what many manufacturers are focused on now, and with good reason. According to NAM’s third-quarter 2020 Outlook Survey, nearly 83% of manufacturers have taken a financial hit as a result of COVID-19. In fact, 62% don’t expect revenues to fully rebound until 2021 or later. In the meantime, manufacturers need to make the most of every resource they have—and that includes their workforce.
As we find our way through the volatile present, manufacturers are making more long-shadow decisions than ever—often without the benefit of updated, fact-based assumptions. Shifting factors are reshaping demand and resources on a daily basis, and the pre-COVID playbook no longer applies. If your goal is to survive the recession and emerge stronger and wiser, you need a playbook on how to proceed.
Investing in an OEE tracking system is a great first step toward reducing machine downtime, saving money and, ultimately, increasing revenue. However, using production data correctly is not as simple as it may sound. Like most things, there is a learning curve for manufacturers that are new to this process.
As the downturn continues, most manufacturers are experiencing a loss of revenue. Sales are down, material costs are up, and supply chain disruptions continue to wreak havoc. While owners and plant managers understand the need for digital transformation, many believe that this is not the time to invest in technology.
Implementing a utilization tracking system like Amper is an effective way to manage machine downtime. However, you’ll need to enable your supervisors and managers to create accountability with the system and with operators. Ultimately, operators will be the ones responsible for identifying machine downtime root causes.
If you think machine monitoring is out of the question for your factory due to the cost and the time it takes to implement a solution, think again.
A manufacturing plant is one of the most dynamic and complex business environments you’ll find. Amper has worked with hundreds of operational leaders across scores of factories, and we have found that utilization and downtime are powerful manufacturing metrics that help company leaders control their operations and work toward running lean.
In these trying times, we need more simplification. More focus.
Hi, I’m Peter, and I used to be an Operations Manager at a CNC machine shop. If you’re reading this blog, it’s probably safe to say I used to be like you.
We created this Lean Manufacturing blog series in the hopes that you’ll find it helpful. We’ll cover the history of Lean, its past successes and failures and how you can build a Lean foundation to serve as a springboard to ongoing success.
As manufacturers across the US prepare for the long shadow of impact due to the COVID-19 pandemic, there have already been seismic disruptions to the supply chain and the way we work. At Amper, our team has been working closely with our partners and identifying ways we can help.
We created this Lean Manufacturing blog series in the hopes that you’ll find it helpful. We’ll cover the history of Lean, its past successes and failures and how you can build a Lean foundation to serve as a springboard to ongoing success.
We live in uncertain times. Like every other industry, the manufacturing sector—including its roughly 12 million workers—has been deeply impacted by the COVID-19 pandemic and subsequent downturn.
As every manufacturer knows too well, the Coronavirus pandemic is posing a very real threat to the industry. While the CDC advises that U.S. workers should stay home whenever possible, there is no “work from home” option for factory workers.
Every day, manufacturers strive to ship their parts on time and at the quoted price. This can be very complicated, with factors like labor shortages and machine downtime preventing companies from achieving maximum OEE. While manufacturers work to mitigate these challenges, there isn’t always a clear process to follow when improving operations.
Establishing best practices in machine maintenance can be a challenge, but it is an achievable goal. Below are 5 best practices to follow when implementing preventative maintenance into your operations.
Note: Special thanks to Joel Blachman, Erik Johnson and SNF Polychemie for creating this article.
Collecting and analyzing currently unused data could lead to dramatic productivity increases for HMLV manufacturers around the country, and it is much easier to get started than it used to be. The following points explain 5 different ways to improve HMLV manufacturing, and how incorporating digital technology is no longer out of reach.
“I want three custom parts for my machine, and I need them by tomorrow.”
Machine monitoring is an essential tool used for continuous improvement by manufacturing companies around the world. Here are 3 ways machine monitoring is broken and how Amper is changing the industry.
Machine monitoring is an essential tool used for continuous improvement by manufacturing companies around the world. By collecting and analyzing data from their equipment, companies can make informed decisions to streamline processes, increase production capacity, and enhance profitability.