Memex Automation Cites Robert C. Hansen on OEE Profitability

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

According to John Rattray of Memex Automation, “We consider [Robert C. Hansen’s Overall Equipment Effectiveness: A Powerful Production/Maintenance Tool for Increased Profits] to be the premier book on the principles of OEE – Overall Equipment Effectiveness.  Hansen demonstrates that for a manufacturer, a 10% improvement in OEE can generate a 60+% improvement to EBIT – representing millions of dollars to the bottom line profit.”  Rattray notes, “Hansen’s text brings together both the social and technical aspects of successful manufacturing and processing.  I would have paid many times over to have such a book at the start of my manufacturing career.  The book is a practitioner’s primer; it demonstrates how to apply and improve overall equipment effectiveness at your factory or processing plant.  Picture yourself facing a majestic mountain that represents performance excellence at its peak. Every factory or processing plant represents a mountain, and no two are exactly the same.  In fact, each changes whenever its products, processes, materials, or people change.  Achieving excellence is a continuous climb.”

Memex Automation Allows Manufacturers to Connect Shop Floor Machine Data in Real-Time

Original article posted in SBW!RE. Link to original article here.

According to John Rattray of Memex Automation, “Customers have asked how a Memex Ax9150 Universal Machine Interface (UMI) compares to a typical Programmable Logic Controllers (PLC).  In answering, we are faced with the same dilemma as the apple to tennis ball. Both the UMI and PLC have digital inputs and outputs, but that is where the comparison ends. A PLC is only a hardware component, whereas the Memex Ax9150 UMI is a full system of hardware, firmware, software applications and configuration tools designed to connect to any machine. The Memex Ax9150 UMI is part of a comprehensive OEE+DNC production monitoring and control system that ties the Shop Floor to the Top Floor.”

A PLC has no operator interface and cannot be used with just any machine. In contrast, the UMI is specifically designed to connect with ALL machines. Although the UMI collects most data automatically so that operator input is not mandatory, such input is often used to further increase the system’s functionality, an option not easily accomplished without expensive custom services for a PLC.

To re-create the Memex Productivity system with just a PLC collecting digital I/O points is virtually impossible according to Rattray. “Manufacturers would have to add an HMI plus advanced configuration and custom code development services. Moreover, the cost of developing a PLC-based system for use as an OEE shop floor interface historically has cost $15,000 – 20,000+ per machine and has required extensive, support services, and is most often a non starter for a company due to the overall cost of the project. Compare this reality with the $4,000 per machine cost (installed) of the UMI — it is now affordable.”

North American Manufacturing can Compete with Overseas Outsourcing

Important Manufacturing Industry Information

There is a movement to prove that North America can be more competitive than China or offshore.  Consider that the “Reshoring Initiatives” that reduce the total cost gap from 30% to close to zero. Right there North America can be competitive with a level playing field. Add to this that Memex lean tools to increase efficiency 10-50%, there is a very compelling case for North America manufacturing to be more competitive than China or other offshore locations.  Now, with recent moves indicating that North America governments are serious, with unprecedented moves, about bringing manufacturing back to North America

So all combined:

  • Reshoring Initiatives with TCO calculations to reduce 30% cost gap to zero
  • OEE efficiency improvements of 10-50% on shop floor
  • Unprecedented federal financial assistance, 100% capital equipment write-off – should fund these projects.

North America can truly be more competitive than China in manufacturing!

According to Manufacturing & Technology News:

A new nationwide initiative is underway to convince companies that it is worth bringing manufacturing back to the United States. Illinois is the first state in the country to start a “Reshoring Initiative” aimed at large OEMs to re-open factories in America. Backers hope to create similar chapters in Michigan, Indiana, Ohio, Pennsylvania, New York and California.

Leading the charge is Harry Moser, a charismatic, straight-talking former CEO of a major U.S. manufacturing technology supplier who has received financial backing from major trade associations and companies.

Moser and his partners are trying to get manufacturers and their suppliers to use the total cost of ownership software estimator the Reshoring Initiative has developed to compare the China price to the U.S. price, including an estimation of risks. If Moser can get companies to run the data, what they usually find is that Chinese costs are 30 percent below those of a U.S.-made product, but once the total cost of ownership is included, that gap can almost be eliminated.

OEE and beyond: using data to your advantage

As published on the website Metalworking Production & Purchasing, copy of the article OEE and Beyond: Using Data to Your Advantage.