Data, data everywhere - but where do I begin?

Don’t mention KPIs

With outputs like this, what is stopping manufacturers from measuring data? Sometimes just the language of measurement can be off-putting to a busy factory owner. Key Performance Indicators (KPIs), can sound like management speak, and an activity which is time-consuming and unnecessary. However, delve a little deeper and most businesses already have an informal measurement system in place which helps to influence decision making.

One of my colleagues recently supported Pure Fabs, a Bolton based metalworks manufacturer who were able to reduce waste in their processes by 7% by implementing 5S and Visual Management. The business began measuring the 8-wastes and they were able to set a benchmark for productivity as a result.

Pete Connor, Director at Pure Fabs said:

“We analyse every detail now. It has helped us understand the ‘hidden wastes’ within the business and the team are now as focused on saving time as they had previously been on saving materials.”

Once the business started to measure wasted time, they were able to make improvements by introducing standard operating procedures (SOPs) and investing in a new duct former which eliminated 30 minutes of production time per duct.

Keep it critical

I spoke to Dr Tony Bannan OBE, Group Chief Executive at Precision Technologies Group (PTG) and one of the Greater Manchester Manufacturing Champions, and asked how his business uses KPI’s to measure performance, and in what way PTG has adopted Industry 4.0 technologies. PTG is a world-leading manufacturer of special-purpose machine tools and components, and the business has ‘designed in’ Industry 4.0 principles to its machine and production technologies.

“Accurate data is vital for a manufacturing firm, and provides truth about why the business, and its processes, are performing as they are. However, KPIs can overwhelm even the most advanced manufacturing business if the measurements aren’t focused on what is really critical, either in the business at large, or in the quality of what’s produced.

“It is not uncommon for a business to start measuring a large number of KPIs, and within a couple of months realise that the process has become burdensome and unhelpful. At PTG we have 7-8 critical business measures that we focus on, including sales and production targets, but one of the most crucial is utilisation of people and machinery; we aim to keep this above 80%, but it can creep downwards unless you stay focused on it.

“In our Holroyd machines we’ve built ‘intelligence’ into the control software and machine electronics to provide in-process scanning of components during the manufacturing process, integrated to automatic correction and tool adjustment systems. These I4.0 functions are networked and highly automated so that key parameters and data can be communicated within and outside the company, making remote monitoring, data logging and diagnostics possible.”

It's all about transparency 

Tony says:

“I suggest that a business use a process or department as a ‘pilot’, and start to measure carefully. Proceed one step at a time, by continuous improvement. Understand the process. Don’t try to ‘blitz’ everything at once. Carefully select a small number of key data, observe results, set KPI targets and benchmarks, and show that the data collected is valuable. Then gradually extend the process to improve across more functions."

This is reiterated by Andrew Peters, Managing Director, Siemens Digital Factory, Congleton and fellow Manufacturing Champion in the recent Big Question report. He said:

“My main advice (to increase productivity) is to establish transparency around the factory with KPIs. Having established this, given many small businesses don’t have the luxury of additional resource, start small.

“Choose one production area and identify small improvements which can be made to production. Engage the team by setting up display boards which show progress being made. Daily stand ups are a great tool for creating transparency.”