Addressing the six biggest losses in manufacturing
-Rob Stummer, APAC CEO,SYSPRO As the manufacturing sector continues to navigate chinks in the global supply chain while trying to meet customer demand in a COVID era of restrictions, the fact remains that manufacturing is an industry that the pandemic has put under the spotlight and one which continues to be more competitive than ever. For manufacturing organisations, the priority remains on reducing waste, being more efficient and continuing to have a competitive edge over others. Being able to identify what is referred to as the six big losses will provide businesses with an equipment-based perspective on lost production time that they can use as part of their improvement program. Some manufacturers have implemented programs like Total Productive Maintenance (TPM) and focused on improving Overall Equipment Effectiveness (OEE) with the aim of streamlining manufacturing processes and increasing output. While TPM is an equipment maintenance model that aims to achieve perfect production with no breakdowns, slow running or any other machine related problem that affects throughput. OEE is a metric that measures how well the machine is being utilised, otherwise known as uptime, the speed of the machine and the quality of the production. In the past, due to legacy Operational Technology (OT) systems, manufacturers had no clear visibility into the manufacturing process and could not always tell where equipment bottlenecks were. OEE supports TPM based initiatives by measuring progress towards the nirvana of perfect production and one of the most effective ways of improving OEE is to identify the six big losses. 1. Equipment failure Equipment defects and failures result in downtime, financial impact, inventory discrepancies and poor quality-control. This situation can occur for several reasons and can be because of unplanned downtime, no available operators and a lack of raw materials. When equipment is scheduled for production but is not running for any significant period due to a failure of some sort, it is categorised as equipment failure and is an availability loss. A simpler way to think of […]