Originally published online by SBW!RE. Link to full article here.
According to John Rattray, of Financial OEE leader, Memex Automation, “Flexibility improves efficiency…Being efficient while responsive to shifting customer demand requires an enterprise-wide manufacturing transformation: moving from Manufacturing-to-Forecast (MTF) to Build-to-Order (BTO) which can create a dramatic payoff. Greater flexibility means allocation for most efficient production across plants, shifts or suppliers, resulting in a faster response to changing conditions and improved overall plant utilization. Greater efficiency reduces Work in Process (WIP), labor, scrap and rework, saving both time and money.
Improving manufacturing efficiency is a pre-requisite to better profitability and corporate success. Enhancing manufacturing performance yields huge advantages – from cost reductions to a stronger competitive position – which can be passed on to shareholders or customers. The trick is to be highly efficient while improving quality, expanding product portfolio, and becoming more demand driven.”
“Success is increasingly tied to improving manufacturing performance, and improving it quickly. Manufacturers are increasing their focus on the bottom line. This scrutiny is leading to renewed attention on manufacturing, where the most significant assets (plant and equipment) and costs are. Manufacturers need to cut costs, increase cash flow and become more responsive to changing market conditions.”
Rattray insists there are rules that will drive profitability to the bottom line.
Culture of Continuous Improvement
Having an enterprise platform for manufacturing operations real-time Key Performance Metrics such as OEE provides global visibility, across your operations. These capabilities let you easily identify and replicate best practices across your global operations while instilling a culture of continuous improvement across production, warehouse, quality, maintenance and labor activities. Standardized best-practices reduce cycle and takt times across your operations, helping to ensure On Time Delivery (OTD). Global, real-time visibility that is actionable on a 24/7 basis enables immediate resolution to operational disruptions.