Manufacturing Guide to Demonstrating Your Value
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Manufacturing Guide to Demonstrating Your Value Reports to Show Your Work & Justify Resources Whether you’re new to reporting on your daily operations or you’ve been doing it for years, there are always new things to learn, new reports to try and new ways to share this critical information about your team’s work. And today, there are even more capabilities within a CMMS (computerized maintenance management system) to make reporting quick and specific — not to mention highly visual and easier for everyone to understand. In a world where the work you do for your manufacturing operations may go overlooked or underappreciated, reporting is the key to HERE ARE SIX WAYS THAT THE demonstrating your value and sharing your needs. RIGHT REPORTING CAN HELP Data can tell the story of what you do, what DEMONSTRATE YOUR VALUE: you would like to do and how you can improve efficiency and uptime through resources, staffing, 1. Improving uptime communication and more. It can also help you answer any questions that are thrown your way. 2. Justifying repair vs. replace 3. Analyzing your equipment 4. Justifying your budget 5. Increasing productivity 6. Optimizing spare parts 2 Improving Uptime Uptime, or more likely downtime, is on everyone’s or “bad actors” in your plant or plants. Start with mind. You know you want to maximize and increase what is causing downtime and why, so you can then your uptime, but how do you find ways to decrease formulate a plan to fix them and improve the quality downtime to get there? After all, downtime is a of your uptime. profit killer that you really need to avoid. You need a system that can help you report on: How can you improve uptime and show the results? Ǡ When and why you have downtime Whether you’re being asked to provide data and Ǡ What is the root cause of downtime reporting around your uptime statistics or you’re Ǡ What is the impact of downtime (and what expected to contribute to an increase in profits, could the potential positive impact of you need to be able to visualize the problem areas uptime be) > WHAT IT SHOWS This report shows the bad actors or specific causes of downtime, their percentage of total downtime Downtime and work orders associated with each. Analysis Report > WHY IT MATTERS Pinpoint what’s causing most of your downtime and map out the most effective way to eliminate it. DOWNTIME ANALYSIS 21 18 20 15 12 hours 9 10 6 3 5 5 0 Part Failure Wear and Tear Lack of Lubrication Short Circuit Cause Downtime hours % of All Downtime Asc WOs Asc WO Cost Part Failure 10 23.5% 11 $1,200 Wear and Tear 5 11.8% 2 $250 Lack of Lubrication 20 47.1% 3 $621 Short Circuit 5 5.9% 23 $329 3 KPI: Downtime 40.0 60.0 Impact Hours > WHAT IT SHOWS 20.0 80.0 A scale of your downtime in hours in a given day, week or month. > WHY IT MATTERS Use this KPI to measure progress on 0.0 100.0 specific goals around downtime and make sure you stay inside your target. > WHAT IT SHOWS The downtime total for each piece of your Equipment equipment. Downtime > WHY IT MATTERS See if there is a specific piece of equipment that is Summary costing you more in downtime. 24 21 18 15 12 9 6 3 0 Forklift 1 Press Press Brake Lathe 2 Forklift 2 Conveyor - Lathe 1 Cutter Hydraulic Crimper Brake 2 1 Pallet Press Handler 4 Justifying Repair vs. Replace You need a system with data and extensive forecasting tools to be able to justify the repair vs. Some assets and equipment around your facility replace argument (and not just based on age) to are starting to show a lot of wear and tear, requiring find the best use of your precious dollar resources. more of your team’s attention and threatening Reporting can help you predict your needs when it downtime. They may have even undergone comes to: multiple repairs and could be starting to become a money pit. How do you know whether you should Ǡ Asset lifecycle and cost repair or replace the equipment, and how do you Ǡ Trend analysis get the budget approved for either? Ǡ Your story around fixing or replacing assets Can you justify your asset needs? “ Whether it’s a daily, weekly or monthly task, We know that your plant running smoothly depends on your assets and equipment working it is captured in the system. This program is well and keeping your employees safe and productive. Since so much is riding on your invaluable in helping us track all our work.” production, it can cause costly problems when assets break down or need to be fixed. -Barry Dean, Aprilaire READ MORE > WHAT IT SHOWS A grade for each asset based on age, historical work, cost and event trends. Asset Life > WHY IT MATTERS Get a macro view of which assets have a good or Cycle Analysis bad grade based on various factors to make repair and replace decisions. Name Category Grade Event Trend Cost Trend Years Left Asset Life Purchase Replacement (Year(s)) Date Cost $ Press Brake 1 Press Brakes B good good -5.69 10.00 03/13/2002 45000.00 Press Brake 2 Press Brakes D bad bad 3.38 8.00 04/03/2013 138000.00 5 > WHAT IT SHOWS The trend of an asset’s cost based on the Trend Analysis frequency of failure. > WHY IT MATTERS Use this data to see if an asset is on the uptick or if it’s wasting resources and make decisions based on that. PRESS BRAKE 1 Cost by Log Entry Date: 700.00 $600.00 415.00 $400.00 280.00 $200.00 130.50 20.83 0.62 $0.00 ($200.00) July 2017 October 2017 January 2018 April 2018 # of Days Between Events: 120 107.00 91.00 90 59.00 60 44.00 30 20.00 0 July 2017 September 2017 November 2017 January 2018 March 2018 PRESS BRAKE 2 Cost by Log Entry Date: $1,000.00 892.97 $800.00 624.00 $600.00 $400.00 309.00 120.00 175.00 $200.00 75.00 $0.00 April 2017 July 2017 October 2017 January 2018 # of Days Between Events: 121.00 120 90 65.00 58.00 54.00 60 30 25.00 0 6 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 Analyzing Your Equipment How do you analyze your equipment and make improvements? What equipment is on your mind day-to-day or what decisions are you having to make around You can’t improve what you can’t measure. That’s pieces of equipment? Whether your boss is asking why you should be analyzing your equipment for an equipment analysis report or you need constantly to monitor any changes or concerns guidance on what pieces are costing the most, it’s that could cost you in the long run. When you track all important to keep a close eye on. work orders, you can do this much easier with the following data right at your fingertips: Ǡ Asset lifecycle and cost Ǡ Trend analysis Ǡ Your story around fixing or replacing assets Asset Cost Summary > WHAT IT SHOWS > WHY IT MATTERS A detailed look at work order, labor, part and other This data can provide a full analysis of your costs associated with each piece of equipment. equipment and how it’s affecting costs. Name # of WOs WO $ Avg $ Part Cost $ Labor Cost $ Other Cost $ Non-inv $ Labor Hrs Avg Hrs Downtime Hydraulic Press 11 380.00 34.55 280.00 100.00 0.00 0.00 5.0 .45 3.0 Forklift 1 51 6128.10 120.16 891.42 1232.25 3910.00 94.43 71.50 1.40 23.50 Forklift 2 32 2061.85 64.43 602.67 1168.50 0.00 290.68 60.50 1.89 11.25 Press Brake 1 3 40.00 13.33 0.00 40.00 0.00 0.00 2.00 0.67 2.00 Mean Time to Repair Analysis > WHAT IT SHOWS > WHY IT MATTERS See how long on average it takes to repair each Report on how quickly the team is jumping on issues. piece of equipment. Asset Originated to Assigned Avg Assigned to Completed Avg Originated to Completed Avg Forklift 1 1 hr(s) 58.00 minute(s) 2 hr(s) 1.00 minute(s) 3 hr(s) 59.00 minute(s) Lathe 1 2 hr(s) 35.00 minute(s) 2 hr(s) 52.00 minute(s) 5 hr(s) 27.00 minute(s) Press Brake 1 1 hr(s) 12 minute(s) 2 hr(s) 18 minute(s) 3 hr(s) 30 minute(s) 7 Justifying Your Budget Find a system with reporting tools to help you show instead of guess: It’s your favorite time of the year: budget season. You have to gather data on staffing, assets, Ǡ Where your budget dollars are going additional resources needed and anything else of Ǡ Actual vs. budgeted dollars importance to convince your boss to give you the same or an increased budget for the year. Ǡ What additional resources you may need Can you justify your budget? Whether you’re under the gun about your INCREASE ASSET departmental budget or you see a need for hiring LIFECYCLE BY additional employees or replacing expensive assets, you’ll have to justify your decisions with some strong data.