Operational ExcellenceThe Digital Way
Milesh GogadGE Intelligent [email protected]
CII Conference onDigital ManufacturingChennai, IndiaJanuary 25, 2012
2Operational Excellence – The Digital Way
Contents
• Industry Challenges
• Operational Excellence
• Tactical Approach
• About GE Intelligent Platforms
3Operational Excellence – The Digital Way
Manufacturing HeadMajor Auto Component OEM, Tamil Nadu
“We monitor OEE (Overall Equipment Effectiveness) manually on approx. 400 machines through spreadsheets. It becomes extremely difficult to understand the big picture though, not to mention it is cumbersome enough to draw any meaningful trends or drill down into the individual factors (Availability, Quality and Efficiency) of OEE from 400 spreadsheets.”
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4Operational Excellence – The Digital Way
CEO, Mid-Sized Pharma CompanyGujarat
“I need to maintain records of my process parameters on a continuous basis for compliance purpose. Hence, my staff prints records from 20 PLCs through 11 dot matrix printers every hour, that I sign on. The result - precious time wasted in non-value-added activity and a room full of files!”
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Maintenance HeadMid-Sized Auto Component OEM Karnataka
“We monitor downtime on our machines, record their causes, and classify them in industry standard groups – say material unavailability, power failure, tool breakage, etc. However, I am not sure of the integrity of this data. How do I base my decisions on this data?”
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6Operational Excellence – The Digital Way
- VP-Manufacturing, Large Pharma Company, Gujarat
“We initiated a corporate lean manufacturing program across all our plants in India. We piloted it through manual processes and systems at one plant currently, but have concerns over scaling it up to multiple plants. More importantly, how do we build an ‘operational excellence’ culture in our staff, that sustains itself in the long run… way beyond the program?”
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7Operational Excellence – The Digital Way
“A wrong ingredient used at an incorrect stage in rubber processing results in a lot of scrap, which is a huge financial loss given the price of rubber. Hence I need an error proofing solution that not just detects, reports and trends such occurrences; but also acts swiftly and prevents such things from happening directly in the process.”
Head-ITMajor Rubber Products ManufacturerTamil Nadu
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Technical Leader, Major Steel Products Manufacturer, Tamil Nadu
“My steel products cannot have any engraved identification of my company, hence there is no way that we can identify if and where there was an error in its manufacturing when a defect is found later in the market. Instead if the entire genealogy of the product was known, we could have easily identified and proven if there was an error – say during the welding or forming process and the process parameters at that instance in that particular batch recorded somewhere.”
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9Operational Excellence – The Digital Way
Head-Operational ExcellenceMajor Pharma Company, Gujarat
“I have a wide variety in my export volumes. The same formulation could have different tablet dosage, different language instruction sheets, different packaging and different norms to comply to, when exporting to different countries. In some cases, my packaging machine change-over and set-up time could stretch to a day!”
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10Operational Excellence – The Digital Way
Operational Excellence
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Technology
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Many Questions One Answer Key Enabler
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Why the shift?
12Operational Excellence – The Digital Way
Business Management Perspective
Improve market responsiveness
Reliable and Predictable Manufacturing Base.Adaptive Manufacturing.
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Business Management Perspective
Integrate Production and Supply Chain
Rely on ‘what we ARE doing’ datarather than the ‘what we THINK we CAN do’ data.
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Business Management Perspective
Brand Protection. Quality Assurance
Transparency and tighter real-time controls in operationsto safeguard processes and prevent quality issues.
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Business Management Perspective
Drive Sustainable Manufacturing
Visibility into resource consumption in areas across the enterprise , empowering them to drive savings as events occur.
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Engineering & Operations Perspective
Empowered Operators ���� Better Decisions
Need for tools to help gather, correlate and contextualize raw datato truly understand operations for better, faster results.
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Engineering & Operations Perspective
Insight and Control to drive savings
Increase in Profit = Plant Revenue * Gross Margin * OEE * Improvement in OEE
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Engineering & Operations Perspective
Reduce Integration Costs and Complexity
A single platform to easily extend and connect to datafrom otherwise isolated systems.
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Engineering & Operations Perspective
Accelerate Continuous Improvement Initiatives
Adopt Lean - Recover value, lower inventory, maximize capital efficiency,and eliminate excess variable costs.
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Operational Excellence Approaches
Rip & Replace
Image Courtesy: Flickr.com and Vecto2000.com
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…or a smarter approach?
• Flexible
• Scalable
• Integrated
• Minimum risk
• Open technology
• Demonstrable ROI
• Hardware independent
• Incrementally expandable
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Operational Excellence Roadmap
• Equipment Level
Process Visibility
• Line Integration
• Information Integration
OEE Regimen• Digitized SOP
• Clever Operators!
Process Reliability
• Plant efficiency
Predictable Manufacturing • Enterprise
Efficiency
Enterprise Agility
1
2
34
5
The Operational Excellence Journey…Tactically ImplementedQuick Results StrategyRapid Capacity Recovery
Process VisibilityP 1.1
Structured OEEP 1.2
Application DeploymentsMaximize Local Cost Savings
StrategicRoadmapStructural Cost Savings
6 MONTHS 9-12 MONTHS 15-18 MONTHS
Real Time QualitySpecification ManagementP 2
Material Impact / SustainabilityGenealogyP 4
Standardized WorkProcess DigitizationP 3
Supply Chain Visibility and Optimization Across Multiple Sites P 5
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24Operational Excellence – The Digital Way
Step 1: Process Visualization
• Supervisory Control
• Data Collection,
Archival and
Analysis
Identify basic down time issues
Helps develop baseline metrics that provide a starting point for measuring reductions in downtime by providing superior process visualization, data
acquisition, analytics and supervisory control of your operations.
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Step 2: OEE Regimen
• Equipment Efficiency
• Process Quality
Focus on work segments
By contextualizing data from several production dimensions (machine, crew, etc. ), and performing trending and correlation analysis, a deeper insight of overall
production as well as critical process parameters is gained.
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Step 3: Process Reliability
• Work Process
Management (e-SOP)
• Production
Scheduling
Reliable, Repeatable and Accurate
Ensures reliable, repeatable and accurate execution as well as visibility into how efficiently these tasks are being executed.
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Step 4: Predictable Manufacturing
• Tracking and
Traceability
• Advanced Analytics
and Reporting
Predictable and Adaptive
Being able to predict and react to changing materials and process dynamics ensures first-pass quality every time, and helps determine the ideal conditions from which to
generate maximum yield.
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Step 5: Enterprise Agility
• Supply Chain
Integration
• Asset Maintenance
Cost
Improve enterprise efficiency
Refining capacity planning for raw materials and real-time process orders, and integrating accurate reporting enables manufacturers to fully support business
processes across organizational boundaries.
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How does GE help?
Proficy™ for Manufacturing
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Typical Plant: Before GE
Finished goods inventories must be held at several weeks anticipated orders, in order to be sure of meeting customer delivery demands
Inconsistent execution of manual procedures introduces inefficiency and quality problems
Unplanned downtime consumes up to 40% of available capacity
Unpredictable quality and throughput lead to over-and under-stocks of key ingredients
Root causes of quality and yield losses are unclear – testing and records management is largely manual – and disconnected from the process 30
Operational Excellence – The Digital Way
31Operational Excellence – The Digital Way
After GE Solution Implementation
Reliable, predictable production capacity allows finished goods buffers to be reduced 30% or more
Improved procedural execution enables agility for high-SKU-mix production
Up to 20% of production capacity is recovered as equipment is proactively tuned for reliability
Material inventory is balanced to demand and production capability
Supplier quality is validated, reducing operational variability and product risk
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32Operational Excellence – The Digital Way
Summary
• Operational Excellence can address many of the industry’s recurring challenges
• Digital technologies are key enablers
• Need a technology that is open, modular and scalable
• GE can help!
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About GE Intelligent Platforms
Software Solutions & ServicesSophisticated data collection and visualization tools for production management.
Control & Communication SolutionsAdvanced control systems for manufacturing processes of all types.
Military & Aerospace Embedded SystemsHigh tech electronics for aerospace, communications and industrial equipment.
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In the ‘Digital’ spirit…
Connect with GE Intelligent Platforms on
http://twitter.com/GE_IP
http://bit.ly/ge-iptv
Thank You.
http://linkd.in/ge-ip-ug
http://ge-ip.com
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