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.
The fact is, this is actually the best time to invest in an OEE tracking system—and we’ll show you why.
Manufacturing in a COVID World
According to the National Association of Manufacturer’s most recent quarterly survey, only 33.9% of manufacturers feel positive about their company’s outlook. This is NAM’s lowest survey result since the first quarter of 2009.
Fictiv’s recent industry poll amplifies this finding. Of the manufacturers surveyed, 89% reported that COVID has negatively impacted their business. Specifically:
- 44% reported that sales have declined
- 41% confirmed that the cost of materials and components has increased
- 41% acknowledged that production lead times have lengthened, and
- 24% confessed that they are unable to fill some customer orders.
In short, manufacturers are simultaneously worried about winning new business and meeting existing delivery schedules. But even as they agonize over how to increase revenue in manufacturing right now, many have rejected the possibility of trying something new, let alone investing in something new.
Therein lies the problem.
How do you get out of a slump without doing something different? Can you afford to wait passively for market conditions to change? Shouldn’t you be weighing what actions you can take to ease your immediate problems and improve revenues as quickly as possible?
Evidence suggests that one of the smartest moves manufacturers can make is to start measuring their overall equipment effectiveness—i.e., adopting a manufacturing analytics platform right now.
5 Ways Manufacturing Analytics Can Increase Revenue Right Now
An OEE tracking system unlocks a wealth of manufacturing data. It allows you to measure factory productivity as it unfolds and therefore, improve each machine’s performance, identify your leading causes of downtime, and spot and solve problems as they occur.
As a result, it yields five practical advantages that are particularly useful in the current environment. In a nutshell, OEE tracking will help you:
- Price Jobs More Competitively: Because a system like this helps you operate more efficiently, you’ll be able to cut your setup times and minimize downtime. That means you’ll be able to quote more competitive rates—and take on more complex jobs—with your existing workforce.
- Improve Supplier Assessment Scores: Potential customers look for manufacturers that can demonstrate clear processes and productivity metrics. Having real-time access to manufacturing data like OEE, improves your credentials. Some systems, including Amper, even offer maintenance tools that help manufacturers meet certifications such as ISO 9001.
- Meet Delivery Deadlines: Because you have accurate OEE data to draw from, you can commit to delivery deadlines with confidence, while ensuring the factory meets its daily production targets.
- Improve Communication and Trust: OEE tracking systems provide in-the-moment metrics as well as alert escalations on machines, jobs and part numbers. As a result, you will be able to reassure customers that their jobs are on schedule and also adjust expectations proactively when things don’t go as planned. Keeping customers in the loop is the foundation of building trust.
- Stand Out from Your Competitors: Most manufacturers can confirm the capabilities and models of their machines and parts, but these are just table stakes. When you can confirm that you track your floor operations in real-time, that’s a significant differentiator. No matter how large or small your operation, it demonstrates that you are a modern, performance-driven factory committed to delivering on its commitments.
The Most Affordable Manufacturing Analytics & OEE Tracking System
So you may recognize how an OEE tracking system can be used to help increase your revenue, but you may not be in a position to spend a small fortune on one. But did you know, they don’t have to be a major investment? (Check out 3 Myths about OEE Tracking System Costs for more on this).
That’s where Amper comes in. Our solution is the most affordable system on the market. Why? There are no complex, lengthy integrations to deal with. You can self-deploy our equipment in under 15 minutes on any machine.
For most customers, it only takes an afternoon to fully install—and then start reaping the benefits. Amper Customer Success Managers help you get up to speed and maximize the system.
Most of our customers see an overall utilization improvement anywhere between 2-10%. Generally speaking, customers see their Amper system pay for itself in about two months.
Imagine what a better place you could be in in two short months.
When it comes to increasing revenue in manufacturing, even now, Amper can help. To see how our real-time OEE tracking system can help you turn things around, request a no-pressure demo.