Operational Excellence - The Digital Way

Operational Excellence
The Digital Way
Milesh Gogad
GE Intelligent Platforms
milesh.gogad@ge.com

CII Conference on
Digital Manufacturing
Chennai, India
January 25, 2012

Contents

• Industry Challenges
• Operational Excellence
• Tactical Approach
• About GE Intelligent Platforms

2
Operational Excellence – The Digital Way

“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.”

Manufacturing Head
Major Auto Component OEM, Tamil Nadu

3

“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!”

CEO, Mid-Sized Pharma Company
Gujarat

4

“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?”

Maintenance Head
Mid-Sized Auto Component OEM
Karnataka

5

“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?”

- VP-Manufacturing, Large Pharma Company, Gujarat

6

“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-IT
Major Rubber Products Manufacturer
Tamil Nadu

7

“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.”

Technical Leader, Major Steel Products Manufacturer, Tamil Nadu
8

“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!”

Head-Operational Excellence
Major Pharma Company, Gujarat

9

Many Questions One Answer Key Enabler
100011100101010010
001010010001010101
011101001010101010
101001101010101010

Operational Technology
Excellence
0010001001001010
0110111100101010
1101010101010100
1101001110100101

10

Why the shift?

11

Business Management Perspective
Improve market responsiveness

Reliable and Predictable Manufacturing Base.
Adaptive Manufacturing.

12

Integrate Production and Supply Chain

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

13

Brand Protection. Quality Assurance

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

14

Drive Sustainable Manufacturing

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

15

Engineering & Operations Perspective
Empowered Operators Better Decisions

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

16

Insight and Control to drive savings

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

17

Reduce Integration Costs and Complexity

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

18

Accelerate Continuous Improvement Initiatives

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

19

Operational Excellence Approaches

Rip & Replace

20

Image Courtesy: Flickr.com and Vecto2000.com

…or a smarter approach?

• Flexible
• Scalable
• Integrated
• Minimum risk
• Open technology
• Demonstrable ROI
• Hardware independent
• Incrementally expandable

21

Operational Excellence Roadmap
Predictable
OEE Regimen
• Equipment • Digitized SOP Manufacturing • Enterprise
Level • Line • Clever • Plant Efficiency
Integration Operators! efficiency
• Information
Process Integration Process Enterprise
Visibility Reliability Agility

5
4
3
2
1 22

The Operational Excellence Journey
…Tactically Implemented
Quick Results Application Strategic
Strategy Deployments Roadmap
Rapid Capacity Recovery Maximize Local Cost Savings Structural Cost Savings

6 MONTHS 9-12 MONTHS 15-18 MONTHS

P 1.1 Process Visibility

P 1.2 Structured OEE

P2 Specification Management Real Time Quality

P3 Process Digitization Standardized Work

P4 Genealogy Material Impact / Sustainability

P5 Supply Chain Visibility and Optimization Across Multiple Sites
23

Step 1: Process Visualization
Identify basic down time issues

• Supervisory Control
• Data Collection,
Archival and
Analysis

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.
24

Step 2: OEE Regimen
Focus on work segments

• Equipment Efficiency
• Process Quality

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.
25

Step 3: Process Reliability
Reliable, Repeatable and Accurate

• Work Process
Management (e-SOP)
• Production
Scheduling

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

26

Step 4: Predictable Manufacturing
Predictable and Adaptive

• Tracking and
Traceability
• Advanced Analytics
and Reporting

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.
27

Step 5: Enterprise Agility
Improve enterprise efficiency

• Supply Chain
Integration
• Asset Maintenance
Cost

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.
28

How does GE help?
Proficy™ for Manufacturing

29

Typical Plant: Before GE
Inconsistent execution of manual Unplanned downtime
procedures introduces inefficiency consumes up to 40% of
and quality problems available capacity

Unpredictable quality and
throughput lead to over-
and under-stocks of key
Finished goods inventories must be ingredients
held at several weeks anticipated Root causes of quality and yield losses are
orders, in order to be sure of meeting unclear – testing and records
customer delivery demands management is largely manual – and
disconnected from the process 30

After GE Solution Implementation
Up to 20% of production
Improved procedural execution
capacity is recovered as
enables agility for high-SKU-mix
equipment is proactively
production
tuned for reliability

Material inventory is
balanced to demand and
production capability
Reliable, predictable production
capacity allows finished goods
buffers to be reduced 30% or more Supplier quality is validated,
reducing operational
variability and product risk 31

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!

32

About GE Intelligent Platforms

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

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

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

33

In the ‘Digital’ spirit…
Connect with GE Intelligent Platforms on

http://twitter.com/GE_IP http://linkd.in/ge-ip-ug

http://bit.ly/ge-iptv http://ge-ip.com

Thank You.
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Operational Excellence - The Digital Way

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