Manufacturing journalist TR Cutler profiles the OEE Calculator

/in

Manufacturing journalist, TR Cutler, recently profiled the OEE Calculator by Memex Automation for Industrial Electronics Today.

The leading OEE (overall equipment effectiveness) Calculator, quantifies the increase in Income From Operations (IFO or EBITDA) for Same Sales Volume and Sell Everything scenarios for various improvement criteria. The OEE ROI calculator is a very preliminary ‘rough cut’ analysis tool for developing a business case (to engage real-time manufacturing performance data for shop floor machines in manufacturing plants). Part of the reason Calculator is ‘rough’ is because a Plant average is used for several important parameters such as OEE, shift output, and quality rate.

Much greater precision can be developed by using actual OEE data differentiated by product run and by work station. Future monitoring and proactive use of the information provided by an installed system significantly improves accuracy of alternatives; these data assists leadership teams in setting direction and focus to maximize results quickly. Rattray noted that, “First Look results are generated using Small, Medium and Large preselected productivity improvements to show the range of possible results.”

The current input values in the OEE Calculator, use hypothetical but realistic values for a machine tool plant. It is estimated that for most manufacturing plants, the Calculator results have a confidence level of eighty-five percent (85%), plus or minus three percent (3%.)

The OEE Calculator does not apply the Theory of Constraints (TOC) therefore, if the proper application of tools and OEE improvement is not achieved at the constraint, then the increase to IFO is also limited. The quality factor usually has more impact than Availability or Speed Factor for bottom line improvement. When waste or scrap is improved, OEE improves; the result, less material needed. It is important to apply Lean Six Sigma techniques to your manufacturing operations, so as to achieve significant results. Memex offers services in this area, as documented in our website.

Memex suggests that users of the OEE Calculator, “Closely account for the change in material since it determines the new amount of total units made and applies the base case unit material cost to the total number of new units required to make the good units for the associated scenario.” The Calculator zeroes all of the improvement parameters and individually examines what one (1) OEE point improvement is worth for Availability, Speed Rate, and Quality. This data provides the user an approximation of financial impact on IFO for types of improvement activities.

David McPhail Memex Automation CEO Co-authors MTConnect Institute Connectivity Guide

/in

Burlington, Ontario — (SBWIRE) — Developed as a guide for shop owners and plant managers exploring the MTConnect implementation process, the MTConnect Institute announced the release of the “Getting Started with MTConnect – Connectivity Guide.”

David McPhail, President & CEO of Memex Automation Inc. and co-chair of the MTConnect Shop Floor Connectivity Committee said, “It was a pleasure working with such a talented and energetic team of experts who are all focused on addressing manufacturing productivity issues. By applying the techniques defined in the Connectivity Guide, essentially every piece of manufacturing equipment can now be integrated into a manufacturing data system — empowering productivity improvement on the shop floor for all machines.”

This guide is the result of a year-long effort by the MTConnect Shop Floor Connectivity Committee.  Thought leaders from sixteen companies representing a diverse cross-section of the discrete parts manufacturing industry collaborated in the development of the guide. The committee addressed the most fundamental question shop owners and plant managers had when deciding to implement MTConnect.  The guide addresses connectivity issues associated with both new and legacy manufacturing equipment; it provides a structured framework to guide companies through the assessment of equipment and the early planning stages of a project.  McPhail emphasized, “The guide is a valuable tool for anyone in manufacturing who believes that improving productivity starts with understanding what is happening on the shop floor.”

The foundation for improving manufacturing productivity starts with easy access to data.  MTConnect provides manufacturers with a simple and extensible mechanism to connect manufacturing equipment to software applications used to run the businesses.  The “Getting Started with MTConnect – Connectivity Guide” is downloadable at
http://www.mtconnect.org.

Dave Edstrom, President and Chairman of the Board for the MTConnect Institute said, “This Connectivity Guide will be an extremely valuable tool for shop owners and managers who need to address productivity issues in their manufacturing operations. I am asked the same question almost daily — How do I get started? This guide answers that question. The Connectivity Guide is the first piece to be released in our ‘Getting Started with MTConnect’ series. Additional documents will be released soon to further support manufacturing companies that are adopting productivity solutions using MTConnect.”

About Memex Automation Inc.
Memex Automation Inc., http://www.memex.ca, was created to leverage the research and development of Memex Electronics, which was founded in 1992.  Memex continues its tradition of serving the discrete manufacturing sector, supplying component hardware, memory upgrades, and visionary shop floor communication technology. Memex products allow a manufacturer to realize the impact of OEE Profitability.

Memex Automation

www.memex.ca
John Rattray
jrattray@astrixnet.com
1-866-573-3895

Memex Automation: Flexibility Improves Efficiency

/in ,

Originally published online by SBW!RE.  Link to full article here.

According to John Rattray, of Financial OEE leader, Memex Automation, “Flexibility improves efficiency…Being efficient while responsive to shifting customer demand requires an enterprise-wide manufacturing transformation: moving from Manufacturing-to-Forecast (MTF) to Build-to-Order (BTO) which can create a dramatic payoff. Greater flexibility means allocation for most efficient production across plants, shifts or suppliers, resulting in a faster response to changing conditions and improved overall plant utilization. Greater efficiency reduces Work in Process (WIP), labor, scrap and rework, saving both time and money.

Improving manufacturing efficiency is a pre-requisite to better profitability and corporate success. Enhancing manufacturing performance yields huge advantages – from cost reductions to a stronger competitive position – which can be passed on to shareholders or customers. The trick is to be highly efficient while improving quality, expanding product portfolio, and becoming more demand driven.”

“Success is increasingly tied to improving manufacturing performance, and improving it quickly. Manufacturers are increasing their focus on the bottom line. This scrutiny is leading to renewed attention on manufacturing, where the most significant assets (plant and equipment) and costs are. Manufacturers need to cut costs, increase cash flow and become more responsive to changing market conditions.”

Rattray insists there are rules that will drive profitability to the bottom line.

Culture of Continuous Improvement

Having an enterprise platform for manufacturing operations real-time Key Performance Metrics such as OEE provides global visibility, across your operations. These capabilities let you easily identify and replicate best practices across your global operations while instilling a culture of continuous improvement across production, warehouse, quality, maintenance and labor activities. Standardized best-practices reduce cycle and takt times across your operations, helping to ensure On Time Delivery (OTD). Global, real-time visibility that is actionable on a 24/7 basis enables immediate resolution to operational disruptions.

Take Back Manufacturing

/in

Take Back Manufacturing (TBM) was a theme at the recent CMTS event in Toronto. The Society of Manufacturing Engineers (SME) presented a roadmap to Take Back Manufacturing. It was shared that North America is rapidly losing prosperity via the decline in this important part of the economy. During the event it was advocated that much more must be done to improve the business environment, improve the focus and approach to better position success within the manufacturing sectors.

In a recent SME press announcement the tone was clear: “Everyone knows the issues and the situation, but little is being actively done to fix it, and this forum has a fresh and much broader representation across many parts of industry, and once the forum has formulated its common view it will be the turn of government and others that set policy to listen…..Stay tuned…” More on the TBM journey at….. http://sme-tbm.org.

According to John Rattray of Memex Automation who supports the initiative, “The goal of TBM is to get Government, Educators and Industry leadership to work closer together to plan the recovery of our declining manufacturing sectors.” Rattray’s firm totally support the active TBM forum of a broad range of technical societies, management associations, and trade union organizations.

One of the ways in which Memex Automation is actively demonstrating the TBM philosophy is to service on the MTConnect Shop Floor Connectivity Committee. Thought leaders from sixteen companies representing a diverse cross-section of the discrete parts manufacturing industry collaborated in the development of the guide. The committee addressed the most fundamental question shop owners and plant managers when deciding to implement MTConnect.

The guide addresses connectivity issues associated with both new and legacy manufacturing equipment; it provides a structured framework to guide companies through the assessment of equipment and the early planning stages of a project.

The foundation for improving manufacturing productivity starts with easy access to data. MTConnect provides manufacturers with a simple and extensible mechanism to connect manufacturing equipment to software applications used to run the businesses.

Memex’s product suite is designed for exactly TBM – in that it offers a 10-50% increase in efficiency on the shop floor, this means companies can be cost competitive, and win business back to North America. Memex has many customers who have done exactly this, and been able to grow their business running at full capacity, acquiring more machines.

Efficiency means win more business, which means Take Back Manufacturing!