5 Essential Lean Manufacturing Metrics in i4.0

One of the most critical components of industry 4.0 (i4.0) is the integration and utilization of robust data analytics to optimize operational processes. However, many manufacturers are finding it difficult to navigate through the sea of cluttered and overwhelming amounts of information birthed by i4.0 technology to leverage data in a strategic manner to drive SMART goals and KPIs (Key Performance Indicators).

To help manufacturers turn data into meaningful insights, our smart factory experts have compiled the five most important lean manufacturing metrics to consider for success when implementing smart factory technology — see the infographic to learn more about adoption, accountability, performance, OEE (Overall Equipment Effectiveness) loss by role, and OEE vs OEEc (Continuous OEE).

Be sure to share the infographic with your teams and across your social platforms. Also, listen to our “Ask the Experts: Lean Manufacturing Metrics in i4.0 Era” webinar to learn more about:

• How to conquer complex information and utilize 5 key metrics to make faster and smarter decisions to drive sustainable growth.
• Data pitfalls that threaten successful manufacturing digital transformation efforts and how to break down data silos.
• Exclusive insight into best practices of some of the world’s most advanced smart factory manufacturers.

5 Lean Manufacturing Metrics in i4.0

Connect the right metrics with SMART goals to tap into highest growth and ROI (Return on Investment).

1. Adoption

I4.0 technology must be adopted by employees to attain ROI. Measure an overall adoption score of individual tasks and interactions with new software at a machine, plant or multiple plant. Key to monitor include: 

• Machine downtime documentation 
• Comments provided 
• Scrap recorded

Maximize Your Manufacturing Efficiency With Shoplogix’s Adoption Feature

The Adoption Dashboard is a new out-of-the-box analytics dashboard designed to give visibility into the effectiveness of your plants’ utilization of Shoplogix’s core functionalities. The dashboard is tailored for management, executives, and Continuous Improvement (CI) professionals who are determined to maximize the value derived from the core Shoplogix offerings.

Key Benefits

The Adoption Dashboard contains a set of KPIs that each provides valuable insights into the plant-level adoption of core Shoplogix features. Maximizing these KPIs ensures employees are engaged in a continuous improvement process but also serves as a health check to ensure your Shoplogix production data is as valuable and precise as possible.

Feature Highlights – New adoption metrics, within Analytics:

• An intuitive ‘out of the box’ Adoption Dashboard to measure and compare plant adoption.
• The ability to slice & filter these KPIs by plant, shift, job, machine, and more.

2. Accountability

Accountability is a crucial aspect in any manufacturing process, and it is especially critical in the context of issue resolution. The Accountability module offered by Shoplogix helps create an efficient feedback loop for problem-solving within a manufacturing plant.

This module allows actions to be assigned with specific resolution dates. This feature not only provides a clear timeline for addressing issues but also offers a measurable way to gauge the effectiveness of a plant in resolving problems. It adds a layer of transparency and responsibility, ensuring that tasks are not only assigned but also completed within a set timeframe.

By “cloning the loop on issue resolution,” the module ensures that the process of identifying a problem, assigning it for resolution, and then checking its successful completion becomes a standard, repeatable routine. This routine can lead to an improved problem-solving process, quicker resolution times, and ultimately, a more efficient manufacturing operation.

3. Performance

Performance is a key aspect to consider in any manufacturing operation as it directly impacts the throughput and overall efficiency of the production process. The Smart Factory Platform aids in monitoring the performance using several metrics which include:

• Machine/Job Run Speed Targets: These targets are set to measure the potential throughput of the machine or job. It provides an estimation of the maximum amount of output that can be produced within a specific time frame. If these rates are inaccurate, they can hide underlying issues affecting productivity, making it crucial to monitor them closely.
• Machine Truth Reporting in Real-Time: Real-time reporting provides immediate insights into the operational status of machines. It helps in identifying any sudden drops in performance or unexpected machine downtime. This facilitates quick resolution and minimizes production delays.
• Root Downtime Cause Analytics: Understanding the root cause of downtime is essential for preventing future occurrences. By investigating and analyzing these causes, manufacturers can implement effective strategies to improve machine uptime, thus enhancing overall productivity.
• Employee Performance: The performance of employees directly influences the efficiency and quality of production. Monitoring employee performance helps in identifying areas for improvement and implementing necessary training or skill enhancement programs.
• Process Improvements: Regularly tracking and analyzing performance data can help identify inefficiencies in the manufacturing process. By making data-driven improvements to these processes, manufacturers can significantly increase productivity and reduce waste.

4. OEE Loss by Role

The OEE loss by role is a tool that promotes accountability and drives continuous improvement across various roles within a manufacturing operation. By tracking specific behaviors and processes associated with each role, it’s possible to identify areas of inefficiency and implement necessary improvements. Here’s a breakdown of the roles:

• Operation: This pertains to the workers directly involved in the production process. Tracking their habits such as arrival times, departure times, break durations, and idle times can help identify potential productivity issues.
• Maintenance: This role involves the upkeep and repair of machinery. By monitoring how quickly maintenance teams respond to alerts and complete repairs, it’s possible to reduce machine downtime and increase overall productivity.
• Continuous Improvement: This team is responsible for identifying and addressing recurring minor stoppages, bottlenecks in the production line, and flaws in mechanical process design. Their goal is to continuously refine the manufacturing process, thereby enhancing efficiency.
• Material Handling: This role involves managing resources used in the manufacturing process. They should aim to minimize changeover times, avoid material shortages, and optimize the flow of materials to maintain a smooth production process.
• Changeover Teams: These teams handle the transition from making one product to another on the same line. By splitting changeovers into multiple stages, deeper insights can be gained into where losses occur during this process, allowing for specific improvement strategies.
• Quality: This role focuses on maintaining the quality standards of the products. By focusing on reducing scrap rework and quality-related downtimes, it’s possible to improve the quality of output and reduce waste.

OEE vs. OEEc

OEE and OEEc are crucial metrics in manufacturing that differ in their measurement periods and focus.

OEE tracks performance during scheduled hours. It’s calculated by combining availability, performance, and quality metrics during planned production times. This helps identify losses, benchmark progress, and improve productivity of manufacturing equipment.

On the contrary, OEEc measures performance continuously, 24/7, providing a comprehensive view of equipment effectiveness beyond scheduled hours. This helps uncover issues that may go unnoticed with OEE.

OEEc’s focus is on continuous improvement rather than just establishing the metric. By eliminating the uncertainty of scheduled time, OEEc offers a reliable metric for performance trajectory and its underlying reasons.

About Shoplogix

Shoplogix is re-defining the manufacturing industry by making the Smart Factory platform the cornerstone of digital production performance transformation. By empowering manufacturers to visualize, integrate, and act on production performance in real-time, Shoplogix helps to uncover hidden shop floor potential and drive rapid time to value.

Think your organization is ready to take the next step with your manufacturing metrics?

Schedule a demo with us.