Optimize manufacturing processes
Optimized manufacturing processes are crucial for competitiveness and productivity. However, getting there requires transparent processes, data structures, and analysis capabilities. In this article, we give you a comprehensive overview of the ideal state of digitalized manufacturing, the current status quo of many companies, the steps to digital process analysis, and the benefits you can expect. Finally, we provide answers to frequently asked questions about manufacturing process optimization.
Status quo: Where do you stand in the digitalization of your production?
Many companies are still in the early stages of digitalizing their manufacturing. As a result, many companies still need more transparency. Our customer Foundation Wellness compares this situation to the game “Whack a Mole.” A problem is solved but then reappears in a different form. Instead of making the proper long-term adjustments, only day-to-day problems are solved.
A good database is crucial for thoroughly analyzing and evaluating your production processes. A detailed process analysis allows you to identify inefficient processes and take targeted measures for improvement.
You need comprehensive and objective information to make informed decisions that will truly optimize your production. Is the available data sufficient to realistically evaluate the efficiency of your systems? Can you filter out which machines and processes have the potential for improvement so that you can take targeted action?
A realistic picture could look like this:
- Data integration: production data is collected but is often organized decentrally and not consistently available in real-time.
- Lack of automation: data evaluations and reports are still created manually, which causes errors and delays.
- Lack of system integration: Different departments use different systems, and complete data transparency is not guaranteed.
These hurdles inhibit efficiency and growth potential. However, switching to digitally supported manufacturing processes is becoming increasingly important as this increases quality and flexibility.
Where do you stand in terms of digitalizing your manufacturing processes?
- Do you need a clearer view of your manufacturing processes that would make identifying bottlenecks or inefficient areas easier?
- Do you have enough in-depth information to make objective decisions about optimizing your production?
- Can you accurately assess how efficiently your manufacturing facilities are operating and where there is room for improvement?
- Do you have the data necessary to determine the causes of problems or quality deviations and take appropriate action to correct them?
- Do you have a basis for evaluating, initiating, tracking, and measuring the success of targeted improvement initiatives?
Efficient data analysis and transparent processes are the keys to modern, competitive production. What steps could you take to take your manufacturing to the next level? Contact us for an initial, no-obligation discussion.
Steps towards the digital analysis of manufacturing processes
To overcome the status quo and to digitally analyze and optimize manufacturing processes in the long term, the following steps are useful:
- Analysis and evaluation of the current level of maturity: The first step is to take stock of the current situation. This includes identifying existing systems, data sources, and digital skills.
- Develop a digitalization plan: With the analysis in mind, specific goals can be set and an implementation plan created. This plan should include short-term measures (e.g., real-time data collection) and long-term steps.
- Training and qualification of employees: Even the best systems are of little use if they are not used efficiently. Training and further education should give employees the necessary data skills and understanding of digital processes.
- Introduction of an MES system and networking of machines: The implementation of an MES system (Manufacturing Execution System) ensures that production data is centralized and available in a network.
- Use of analysis and reporting tools: The use of dashboards, KPIs, and reporting tools enables a quick overview and targeted process adjustments.
- Continuous review and adjustment of the process: Digitization is not a one-time project. Regular reviews are necessary to overcome new challenges and identify further optimization opportunities. It is therefore advisable to integrate the analyses into the CIP process.
The ideal state: digitized data and key figures as the basis for CIP
The ideal state of production that is digitally optimized is characterized by the following features:
- Access to real-time data: All process and machine data is recorded in real-time and is available digitally. This enables bottlenecks and deviations to be identified immediately.
- Key performance indicators (KPIs) for all processes: Important KPIs such as throughput times, reject rates, or capacity utilization rates are clearly defined and recorded automatically. This simplifies continuous process improvement (CIP) and allows precise conclusions to be drawn about optimization potential.
- Automated evaluation and reporting: Analysis and reporting tools provide recommendations for action on an ongoing basis.
Such a state allows production processes to be adapted agilely and flexibly, and to react efficiently to market changes. Companies with this structure can achieve continuous optimization and secure decisive competitive advantages.
Excursus: continuous improvement process (CIP)
The continuous improvement process (CIP) is a philosophy that aims to achieve perfection through continuous, small improvements. The PDCA (Plan-Do-Check-Act) cycle is a central quality control and improvement tool in the CIP.
By implementing the CIP, companies can achieve the following advantages:
- Continuous optimization of production processes
- Increased efficiency
- Higher productivity
- Improved process quality
- Stronger competitiveness
Implementation and benefits of CIP
Implementing CIP offers numerous advantages, including increased productivity, process reliability, and competitiveness. Key performance indicators are essential for monitoring progress and achieving continuous improvement.
The use of production metrics enables effective benchmarking and the identification of improvement opportunities. By continuously monitoring and analyzing the production metric and other key figures in production, companies can optimize their production processes in a targeted manner and increase efficiency.
The key role of MES in the continuous improvement process (CIP)
A Manufacturing Execution System (MES) plays a central role in the continuous improvement process (CIP) by providing comprehensive real-time data on production processes and using this data for continuous optimization. With an MES, companies can collect detailed information on:
- machine utilization,
- production speed,
- quality indicators
- and resource consumption.
These data provide valuable insights for identifying bottlenecks and inefficiencies early and introducing targeted improvement measures. By digitally capturing and analyzing this data, the MES helps to achieve greater efficiency, lower scrap rates, and better resource utilization—essential factors for a successful CIP.
An MES system thus creates the basis for data-based decisions that help the company react flexibly and agilely to market requirements and continuously increase productivity.
How can you evaluate the efficiency of your production?
Measuring the efficiency of production processes is crucial to identifying potential for improvement and developing targeted optimization measures. Key performance indicators (KPIs) play a central role in this. They enable you to monitor and control the performance of your processes and thus continuously improve the efficiency of your production.
These production KPIs provide valuable insights into the efficiency of your production processes:
- Overall Equipment Effectiveness (OEE)
- Net Overall Equipment Effectiveness (NEE)
- Overall Operations Effectiveness (OOE)
- On-time-in-full (OTIF)
- Reject rate
These KPIs help you evaluate your machines and systems’ performance and develop targeted measures for improvement.
Advantages of digital analysis in manufacturing
The digital analysis and optimization of manufacturing processes offers a variety of advantages:
- Improved product quality through real-time monitoring and analysis of production data.
- Cost reduction through minimization of scrap and optimized resource utilization.
- Increased flexibility through faster response to market changes and customer requirements.
- Increased efficiency through automation of repetitive tasks and better time management.
- Data-driven decisions for better strategic planning and more realistic production forecasts.
Digitizing production analysis significantly increases a company’s competitiveness and innovative strength.
Case Study: Foundation Wellness – How to systematically improve production metrics
Overview: Foundation Wellness, a leading manufacturer of foot care products in the USA, faced the challenge of improving transparency and efficiency in manufacturing. The previous manual data recording process made identifying bottlenecks and implementing long-term optimizations difficult. By introducing the Manufacturing Execution System MES FLEX, Foundation Wellness was able to transform to data-based production control and sustainable process optimization.
Approach before introducing MES
Initial situation and challenges: Before introducing MES, Foundation Wellness struggled with a “Whack-a-Mole” strategy – daily problems were solved ad hoc without an in-depth analysis of the causes. Manual data collection and a lack of real-time visibility led to inefficient processes and slow decision-making. Eric Jarvis, Director of Operations, says, “Without data, you often play ‘whack-a-mole’ – you only solve the problem of the day instead of finding long-term solutions.”
Real-time data collection and visualizations
Solution approach: With MES FLEX, which relies on real-time data collection and visualizations, Foundation Wellness improved the overview of production lines and systematically captured the main causes of downtime. The implementation was carried out in stages, building trust and training the team. The MES enabled the teams to:
- use data efficiently,
- ensure rapid responses to problems
- identify weak points with evaluations and KPIs,
- realize optimization potential
- and improve production processes in the long term.
Impact on key production figures
Within the first year of MES implementation, Foundation Wellness saw a remarkable overall equipment effectiveness (OEE) improvement from 77% to 85%. Scrap rates also decreased from 4% to 3%. Real-time data visibility enabled more efficient operations management, as managers and employees could respond to production issues promptly.
Eric Jarvis summarizes the impact: “With the right information, we can manage our production safely and effectively.”
Keys to a successful rollout
The successful implementation of the MES was based on solid team involvement and clear communication of the benefits. By introducing daily and shift-based data analysis, Foundation Wellness created a data-driven culture that sustainably increased efficiency. The system’s step-by-step introduction also ensured broad acceptance and reduced conversion problems.
Conclusion: Foundation Wellness shows how a manufacturing execution system can optimize manufacturing processes by increasing transparency and fostering a data-driven culture. The success story makes it clear that a strategic approach to digitalization and the involvement of employees are essential for successful process optimization. Companies that want to future-proof their production can benefit from the experiences of Foundation Wellness and achieve similar efficiency gains.
Want to learn more?
The full success story, including an interview, can be found here.
Summary
Optimizing manufacturing processes through digital analysis is a crucial success factor for modern companies. The path from the status quo to an ideal state requires clear objectives, qualified employees, and the implementation of digital tools. Foundation Wellness shows that using a manufacturing execution system (MES) enables companies to identify inefficient processes, respond to problems in real-time, and achieve long-term improvements. Companies that address these challenges benefit from efficiency gains, flexibility, and a lasting improvement in product quality.
