Tag Archives: Inventory and asset management

Where’d the money go? – How to turn Manufacturing Assets into Profit

If you don’t know where your materials are and how many you have, you don’t know where your money is. The purchase and storing of assets (materials, tools, parts) for manufacturing is one of your largest expenses, so why don’t you have complete control of it?

We see many cases where manufacturers simply don’t know what they have. One shop in particular comes to mind. In walking through a manufacturing shop floor for carbon components in the aerospace industry, we passed the Material Review Board (MRB) area. It was enclosed by a cage to protect the parts from walking off. Inventory in this area was scrap but too valuable to just throw out.

There were shelves upon shelves, and stacks upon stacks, of carbon parts rejected by Quality. Oven times may have fallen short of required minimums or temperatures may not have registered high enough.  Without a fast process for review, these parts were being housed and shelved (literally). They were useless. The manufacturer had an enormous, labor-intensive future job to go through all these parts and create a disposition for each.

The Connection Between Process Control and Manufacturing Scrap

What the team was ignoring was the money that was tied up in these parts. It seems obvious from the outside, yes, but they were focused more on the disposition process and what they were going to do with all those quality rejects. Not to mention how sloppy it looked when upper management came through.  But what they were really missing was the key, hidden issue that this prospect had yet to uncover.

When I see that many pieces of contained scrap [and yes, it happens all the time] I begin looking for the scrap that hasn’t even made it to the cage. The amount of scrap in the screened area signals to me that there is a process problem. Solving process problems are what we are really good at. Control the manufacturing process and you control the scrap. Control scrap and you have a really tight handle on costs, too. That’s where you really start making up lost margin.

When a team is unable to control what is happening on the manufacturing shop floor, especially within the tolerances that their own engineering teams have thought possible, it signals a lack of control in parts and tools. Have you asked for an inventory count of your tools recently? Are you over-ordering or over-stocking in order to make up for “lost” tools [which are inevitably found on the shop floor]?

Ultimately, that same prospect closed manufacturing for a few days to complete a tool inventory. Yikes.

Know where your stuff is, know how much what you build costs you and control the processes that you use to build your parts. These three key concepts are completely linked and fundamental to successful manufacturing, and completely controllable with the right tools. Just ask us how.

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What it Takes to Succeed with Machine Maintenance

Manufacturers invest millions in machines and equipment. These high dollar assets provide the foundation of successful and efficient manufacturing, and yet many companies rely on a spreadsheet, a plastic binder hanging from a hook, and the memory and experience of employees to maintain that critical investment.

If a machine goes down, production stops. Work has to be re-routed, putting ship dates and orders at risk. If work has to be done by a partner company, production costs will skyrocket. Scrap, higher production costs and late shipments are common consequences of machine problems.

Modern shop floors can’t rely on spreadsheets, plastic sleeves, and memory for machine maintenance. Machine upkeep is a critical production process requiring a production control system like Quantum. Successful upkeep and maintenance incorporates process control and conformance, just like every shop floor operation, and should be linked to operations and scheduling to eliminate downtime and increase production velocity.

Control and Conformance for Machine Maintenance

When evaluating your current processes, consider the following critical elements of a successful machine maintenance program managed by a production control system:

  • Schedules and Alerts for Required Maintenance

Machine maintenance is a critical production activity. If you aren’t following maintenance protocol, you risk machine downtime, failed audits, and unsafe work conditions. A scheduled maintenance program eliminates these risks. Support the shop floor with alerts and a system that removes the risk of using a machine due for maintenance – a common occurrence when the shop floor is under pressure to move product and meet deadlines when maintenance is scheduled.

  • Revision-controlled Maintenance Instructions and Records

Machine failure is a risk when you rely on paper-based records or worse, memory, for maintenance instructions. Over time, maintenance requirements can change and employees retire or leave. You need accessible, revision-controlled maintenance and repair instructions that can be accessed when needed. Records, beyond initials on a spreadsheet, should be kept on maintenance activities. A robust maintenance program will protect your investment and significantly reduce machine downtime and production costs.

  • Integrated Maintenance and Production Schedules

When you are investing millions in production machines, maintenance must be a priority. It should be done regularly to optimize machine output and eliminate unscheduled downtime. A successful maintenance schedule that won’t negatively impact production must be integrated with the production schedule. The production supervisor should know when there is work scheduled on a machine to route orders accurately, and ensure shipping and production deadlines are met. With a digital schedule and a production control system, maintenance can be scheduled ahead of time and work optimized to maintain production velocity.

A Program for Optimizing Machine-use

Even though industrial machinery is a critical component of manufacturing, especially make-to-order manufacturing, many companies consider machine maintenance an afterthought until a machine goes down or the shop floor fails an audit. Spreadsheets and plastic sleeves on the machine aren’t an adequate maintenance program, especially when the shop floor comes under pressure to increase output.

Quantum production control system provides seamless support for your machine maintenance program as part of your standard production process, eliminating unscheduled machine downtime, the risk of failed audits, and the stress of upkeep while optimizing scheduling for machines and production. All the benefits are part of the standard product.

Contact CIMx to learn more about Quantum’s integrated machine maintenance in a production control system, and discover how you can optimize machine use while increasing production velocity.