operational excellence - the digital way

Operational ExcellenceThe Digital Way

Milesh GogadGE Intelligent [email protected]

CII Conference onDigital ManufacturingChennai, IndiaJanuary 25, 2012

2Operational Excellence – The Digital Way

Contents

• Industry Challenges

• Operational Excellence

• Tactical Approach

• About GE Intelligent Platforms


Manufacturing HeadMajor Auto Component OEM, Tamil Nadu

“We monitor OEE (Overall Equipment Effectiveness) manually on approx. 400 machines through spreadsheets. It becomes extremely difficult to understand the big picture though, not to mention it is cumbersome enough to draw any meaningful trends or drill down into the individual factors (Availability, Quality and Efficiency) of OEE from 400 spreadsheets.”



CEO, Mid-Sized Pharma CompanyGujarat

“I need to maintain records of my process parameters on a continuous basis for compliance purpose. Hence, my staff prints records from 20 PLCs through 11 dot matrix printers every hour, that I sign on. The result - precious time wasted in non-value-added activity and a room full of files!”


Maintenance HeadMid-Sized Auto Component OEM Karnataka

“We monitor downtime on our machines, record their causes, and classify them in industry standard groups – say material unavailability, power failure, tool breakage, etc. However, I am not sure of the integrity of this data. How do I base my decisions on this data?”



- VP-Manufacturing, Large Pharma Company, Gujarat

“We initiated a corporate lean manufacturing program across all our plants in India. We piloted it through manual processes and systems at one plant currently, but have concerns over scaling it up to multiple plants. More importantly, how do we build an ‘operational excellence’ culture in our staff, that sustains itself in the long run… way beyond the program?”



“A wrong ingredient used at an incorrect stage in rubber processing results in a lot of scrap, which is a huge financial loss given the price of rubber. Hence I need an error proofing solution that not just detects, reports and trends such occurrences; but also acts swiftly and prevents such things from happening directly in the process.”

Head-ITMajor Rubber Products ManufacturerTamil Nadu


Technical Leader, Major Steel Products Manufacturer, Tamil Nadu

“My steel products cannot have any engraved identification of my company, hence there is no way that we can identify if and where there was an error in its manufacturing when a defect is found later in the market. Instead if the entire genealogy of the product was known, we could have easily identified and proven if there was an error – say during the welding or forming process and the process parameters at that instance in that particular batch recorded somewhere.”



Head-Operational ExcellenceMajor Pharma Company, Gujarat

“I have a wide variety in my export volumes. The same formulation could have different tablet dosage, different language instruction sheets, different packaging and different norms to comply to, when exporting to different countries. In some cases, my packaging machine change-over and set-up time could stretch to a day!”



Operational Excellence

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Technology

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Many Questions One Answer Key Enabler


Why the shift?


Business Management Perspective

Improve market responsiveness

Reliable and Predictable Manufacturing Base.Adaptive Manufacturing.



Integrate Production and Supply Chain

Rely on ‘what we ARE doing’ datarather than the ‘what we THINK we CAN do’ data.



Brand Protection. Quality Assurance

Transparency and tighter real-time controls in operationsto safeguard processes and prevent quality issues.



Drive Sustainable Manufacturing

Visibility into resource consumption in areas across the enterprise , empowering them to drive savings as events occur.


Engineering & Operations Perspective

Empowered Operators �� Better Decisions

Need for tools to help gather, correlate and contextualize raw datato truly understand operations for better, faster results.



Insight and Control to drive savings

Increase in Profit = Plant Revenue * Gross Margin * OEE * Improvement in OEE



Reduce Integration Costs and Complexity

A single platform to easily extend and connect to datafrom otherwise isolated systems.



Accelerate Continuous Improvement Initiatives

Adopt Lean - Recover value, lower inventory, maximize capital efficiency,and eliminate excess variable costs.


Operational Excellence Approaches

Rip & Replace

Image Courtesy: Flickr.com and Vecto2000.com


…or a smarter approach?

• Flexible

• Scalable

• Integrated

• Minimum risk

• Open technology

• Demonstrable ROI

• Hardware independent

• Incrementally expandable


Operational Excellence Roadmap

• Equipment Level

Process Visibility

• Line Integration

• Information Integration

OEE Regimen• Digitized SOP

• Clever Operators!

Process Reliability

• Plant efficiency

Predictable Manufacturing • Enterprise

Efficiency

Enterprise Agility

1

2

34

5

The Operational Excellence Journey…Tactically ImplementedQuick Results StrategyRapid Capacity Recovery

Process VisibilityP 1.1

Structured OEEP 1.2

Application DeploymentsMaximize Local Cost Savings

StrategicRoadmapStructural Cost Savings

6 MONTHS 9-12 MONTHS 15-18 MONTHS

Real Time QualitySpecification ManagementP 2

Material Impact / SustainabilityGenealogyP 4

Standardized WorkProcess DigitizationP 3

Supply Chain Visibility and Optimization Across Multiple Sites P 5



Step 1: Process Visualization

• Supervisory Control

• Data Collection,

Archival and

Analysis

Identify basic down time issues

Helps develop baseline metrics that provide a starting point for measuring reductions in downtime by providing superior process visualization, data

acquisition, analytics and supervisory control of your operations.


Step 2: OEE Regimen

• Equipment Efficiency

• Process Quality

Focus on work segments

By contextualizing data from several production dimensions (machine, crew, etc. ), and performing trending and correlation analysis, a deeper insight of overall

production as well as critical process parameters is gained.


Step 3: Process Reliability

• Work Process

Management (e-SOP)

• Production

Scheduling

Reliable, Repeatable and Accurate

Ensures reliable, repeatable and accurate execution as well as visibility into how efficiently these tasks are being executed.


Step 4: Predictable Manufacturing

• Tracking and

Traceability

• Advanced Analytics

and Reporting

Predictable and Adaptive

Being able to predict and react to changing materials and process dynamics ensures first-pass quality every time, and helps determine the ideal conditions from which to

generate maximum yield.


Step 5: Enterprise Agility

• Supply Chain

Integration

• Asset Maintenance

Cost

Improve enterprise efficiency

Refining capacity planning for raw materials and real-time process orders, and integrating accurate reporting enables manufacturers to fully support business

processes across organizational boundaries.


How does GE help?

Proficy™ for Manufacturing


Typical Plant: Before GE

Finished goods inventories must be held at several weeks anticipated orders, in order to be sure of meeting customer delivery demands

Inconsistent execution of manual procedures introduces inefficiency and quality problems

Unplanned downtime consumes up to 40% of available capacity

Unpredictable quality and throughput lead to over-and under-stocks of key ingredients

Root causes of quality and yield losses are unclear – testing and records management is largely manual – and disconnected from the process 30

Operational Excellence – The Digital Way


After GE Solution Implementation

Reliable, predictable production capacity allows finished goods buffers to be reduced 30% or more

Improved procedural execution enables agility for high-SKU-mix production

Up to 20% of production capacity is recovered as equipment is proactively tuned for reliability

Material inventory is balanced to demand and production capability

Supplier quality is validated, reducing operational variability and product risk



Summary

• Operational Excellence can address many of the industry’s recurring challenges

• Digital technologies are key enablers

• Need a technology that is open, modular and scalable

• GE can help!


About GE Intelligent Platforms

Software Solutions & ServicesSophisticated data collection and visualization tools for production management.

Control & Communication SolutionsAdvanced control systems for manufacturing processes of all types.

Military & Aerospace Embedded SystemsHigh tech electronics for aerospace, communications and industrial equipment.


In the ‘Digital’ spirit…

Connect with GE Intelligent Platforms on

http://twitter.com/GE_IP

http://bit.ly/ge-iptv

Thank You.

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operational excellence - the digital way

Technology

operational excellenceculture

oee17operational excellence

long run way

adaptive manufacturing

predictable manufacturing

raw data

different countries

quality andefficiency