Lean Manufacturing Injection Molding

Improving Your Bottom Line by Using
Production & Process Monitoring

Curt Norby,
(Product Manager - Software Solutions)
Productivity and Process monitoring
What is it?
Why do it?
Possible solutions
What Can Process & Production Monitoring
do to Improve a companies bottom line?
Improve and/or Stabilize Cycle Times
Reduce Scrap
Reduce Downtime
Improve Quality
Track Material
Improve Overall Efficiency
Its the Little Things that Make the Difference
Improve and/or Stabilize Cycle Times
Reduce Scrap
Reduce Downtime
Improve Quality
Track Material
Improve Overall Efficiency
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What is OEE?
OEE : Overall Equipment Effectiveness
OEE = Availability x Performance x Quality
A Closer Look at OEE
Availability
Actual Run Time vs.
Available Run Time
Performance
Actual Cycle Time vs.
Standard Cycle Time
Actual #of Cavities vs.
Standard #of Cavities
Quality
Good Parts
Produced vs. Total
Parts Produced
Improvements
The greatest economic impact can be
enjoyed by measuring the impact of
Cycle-time reduction
Scrap reduction
Downtime and set-up time reduction
Improved product quality
Small improvements in the amount of
scrap, downtime, cycle time, and part
quality can provide dramatic increases in
profitability
Improvements
More Accurate Measurements & Results
Manual Method vs. Automated Method
Automated Monitoring
Automated Monitoring
Information is more Timely
Real-Time vs. Waiting for Data Entry
Business Impact from Production Monitoring
Target Correct Opportunities
Use monitoring to Identify the most profitable jobs and
eliminate the less profitable jobs.
Identify the most efficient, most profitable part/machine
combination.
Predictability
Efficiencies are more constant and repeatable.
Improve Capacity
Increase available Machine time for more jobs.
Improve Machine Utilization
Actual hours run for good parts as a % of total
hours available
Productive Downtime
No Work
Mold change
Mold setup
Where is the leverage?
Where is the leverage?
Reduce Customer Returns
Parts scrapped at customer location
Most costly place to find poor quality
Improve On-time shipments
$10M Company, Fixed Costs $2M, Variable Costs 75% Cost of Sales
Capacity
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Capacity
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Breakeven Point
$8M at 80% Capacity
Capacity
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$0.5 Million Profit
@ 100% Capacity
Production & Process Improvements
Variable costs were reduced 5% by
Improved Process Repeatability
Reducing scrap
Fewer start-up parts
Less raw material used
Results of Reducing Variable Costs by 5%
Capacity
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Breakeven Point
$6.7M at 67% Capacity
Results of Reducing Variable Costs by 5%
Capacity
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$1.0 Million Profit
@ 100% Capacity
Value of Downtime/Set-up Time
Variable per-hour cost is $45
Planned profit is $10 per hour
Direct labor and support costs continue even when
unexpected downtime and set-up time occur & profits
are lost
The cost of this unplanned time is $45 plus $10 planned
profits or $55 per hour
Value of Downtime/Set-up Time
Since profits are recovered at $10 per
hour, a machine must produce parts
for 5.5 hours to make up for 1 hour of
unplanned downtime or set-up time.
$55/$10 = 5.5 hours
Value of Scrap
Scenario: Scrap cannot be reused
Variable cost per part is 4 cents
Raw material cost per part is 5 cents
Planned profit per part is 1 cent
Now the cost of a rejected part is 4 cents
(variable costs), planned profit of 1 cent,
AND the cost of the raw material, another 5
cents. Total = 10 cents
Value of Scrap
Now 10 good parts must be made to
recover the costs of one bad part.
The Problem
Market: Food preparation
Situation: 123 molding machines
running 24 hours per day, 365 days
per year
Existing software did not contain
features necessary to improve OEE
Actions: Removed the old
(competitive) system and Installed a
Shotscope NX system ten years ago
Analysis: With Shotscope NX an
initial OEE improvement to 83% was
recorded but then plateaued
Shotscope NX Success Stories
The Solution
Solution: Using Shotscope NX the
customer decided on a strategy
where they would publish a Real-
Timeefficiency metric on the floor
for everyone to see and they would
empower the employees by offering
a bonus pay program based on the
efficiency value
The better the efficiency number,
the greater the bonus
Result: The strategy went live in May
2008
As of May 2009, they have seen an
increase in the overall efficiency
of 8 10%. The customer
improved efficiency from 83% to
93%
Our capacity and scheduling model has changed
drastically as a result of the efficiency
improvement. Our schedules became more
accurate and increased our overall capacity. We
now have the capacity for additional jobs
We couldnt have done this
without Shotscope
Shotscope NX Success Stories
Benefits of Process Monitoring
Elimination of scrap and rework
Reduction of inspection and test
Greater customer satisfaction
Move from problem solving to problem
prevention
Increased machine up time and yields
Reduction in cycle times
Reduction in manufacturing cost
Improved profitability & ROI
Plant wide solution (Web enabled)
Automatically capture all process and
production data for permanent record
Data that is viewable in real time, from
anywhere
Improve output from existing capital equipment
Allocate jobs where they will run most efficiently
Track process data to improve quality
Automatically track maintenance of all plant
equipment
Transfer data to and from other IT systems
What Should a Process & Production
Monitoring System Do For You?
What cannot be measured,
cannot be managed
Questions?
Curt Norby (cnorby@husky.ca)

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Improving Your Bottom Line by Using

Production & Process Monitoring

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