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Give operators a tool to improve performance, and they'll use it

By Jim Fulcher, contributing editor -- Manufacturing Business Technology, 4/1/2007

The only way to reduce unit costs and get the most out of plant investments is to have good data about the manufacturing line. But according to Brian Maguire, a VP with performance-management solutions supplier Shoplogix, “The problem is smaller companies often have data-analysis problems—even data-collection problems. Our typical customer is struggling to collect data such as product count or start/stop cycle times.”

The Shoplogix Plantnode performance management solution actually maximizes manufacturing efficiencies by automating the collection, analysis, and flow of real-time information so it can be used to improve decision-making and optimize operational resources. Long term, the solution delivers the tools for understanding trends.

Yet it's the short-term benefits that are most striking.

“We give operators the tools to adjust equipment behavior to improve performance,” Maguire says. “It gives them a real-time view of standard goals and actual performance measurements so they can tell whether or not they are hitting objectives.”

Use of a display board is central to the approach. For instance, if an operator is monitoring changeover time, and the display's light remains green, the operator knows everything is fine, Maguire says. If the light changes to red, the operator sees that the changeover has taken too long and corrective steps must be taken.

“During a four-week proof-of-concept test using Plantnode, manufacturers very often end up setting plant performance records,” Maguire says. “It's not uncommon to reduce downtime by 25 percent. Those results can be impressive, especially in a company where downtime is extremely pricey—such as in a 24/7 operation.”

Ryerson, a Chicago-based metals processor with approximately $6 billion in annual sales, offers an example of just how immediate the results can be.

Ryerson management wanted a solution that would allow access to real-time production data in a legacy environment. A critical factor in the decision was the level of solution customization and integration required during the implementation process.

Ryerson discovered that the majority of data-acquisition solutions it evaluated required a capital investment over and above the purchase of software—and involved lengthy implementation times. The company considered building a homegrown solution that wouldn't necessarily be faster, but would be customized to meet specific needs with a similar amount of effort.

Then Ryerson discovered Shoplogix Plantnode, which it installed on a cut-to-length line inside its Shelbyville, Ky.-based plant. Company management believed a 5-percent increase in production would justify investment.

“Plantnode performed far beyond our expectations,” says Jeremy Brown, Six Sigma green belt and project manager at Ryerson. “In an eight-hour shift, we saw a 19-percent increase in productivity without increasing costs. We actually achieved a return-on-investment of 140 percent with a payback of 28 days.”

Craig Tompkins, Ryerson's VP of operations at Ryerson, claims that for the first time, operators were able to relate their efforts to the big picture. Proactive notifications and alerts combined with Plantnode's visual display boards also automated the communication process and increased performance visibility of the production line.

“The results of real-time feedback and greater visibility into our process were increased efficiency and productivity, faster response to unplanned downtime, and a much more driven labor force,” Tompkins says. “All of this was achieved while maintaining our exacting quality requirements.”

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