Integrating Equipment Data with ERP for Bigger Business Benefits

Maintenance, particularly on the shop floor, involves expensive machinery – which translates into high costs for actions like repair work. These costs can represent anywhere from 15-70% of expenses, says IEEE. But maintenance costs may not even be the biggest liability.

 

Equipment monitoring ERP - Scytec DataXchange

Inefficient maintenance processes, like manual data collection, contribute to unplanned downtime and costs, according to Forbes.

For companies with strict quality standards and challenging customer expectations, the cost of a nonconformance, rework or even rejection can be enough to draw the attention of executives due to the shipping, additional labor, materials and reallocated machine time required to correct the defective product. This says nothing of the damage to the customer relationship and the impact on their own tight schedule. It behooves manufacturers, then, to ensure shop floor equipment is always performing optimally with minimal downtime.

The Move Past Manual Downtime Tracking

To do so effectively, manufacturing machinery must be continuously monitored. Today’s smart factory showcases plants with modern machine monitoring software, like Scytec DataXchange, which replaces previous steps of manually tracking, handwriting or physically keying in cycle times, set up times, downtimes, costs and reason codes, and then piecing this data together to understand trends, performance and opportunities for improved efficiency. While these manual processes were time- and labor-intensive to compile, report and analyze, they were also often riddled with inaccuracies, in addition to the time delays that further hinder a company’s ability to react quickly. In fact, Forbes specifically cites these types of inefficient maintenance processes as bad attributes that contribute to unplanned downtime and costs.

Bigger Business Benefits

The utilization of equipment monitoring software becomes crucial, therefore, for businesses working towards the goal “to prolong production performance until it reaches a point that the machine requires complete replacement due to wear and tear or technology change, if justified,” writes Salman Taghizadegan in Essentials of Lean Six Sigma. But the benefits of equipment monitoring systems extend past precise predictive maintenance. Through Enterprise Resource Planning (ERP) integration, ideal machine monitoring software can capture and populate data, like these, for an even bigger business-wide impact:

  • Actual set-up and run times. By comparing your estimates to your actuals, you’ll increase the accuracy of your job costing to give you a better handle on your margins and overall profitability. The visibility afforded by these actual times will allow for easier and more reliable planning and scheduling, as staffing requirements become predictable.
  • Machine statuses. Uptime and downtime records and notifications to maintenance, production and management can ensure service is planned for and executed when – and exactly – as needed.
  • Completed quantity. Inventory of raw materials, intermediates and finished goods can be affected in real-time by machine processing, as it occurs.
  • Scrap quantity. Material requirements may be altered based on the volume of actual scrap produced, adding to the dependability of planning and scheduling.
  • Scrap codes. Opportunities to reduce waste may be presented through reason code analysis.

Integrate Machine Monitoring with ERP

While machine monitoring software offers a lot towards optimal maintenance management, its integration with ERP is the lift that expands the effect of equipment data across the enterprise to grant clearer visibility into production, inventory, accounting, lean, planning, scheduling – and yes, maintenance – to help drive greater consistency into each process for more effective decision-making. Learn more about connecting your ERP with machine monitoring software by contacting a Shop Floor Automations representative today.

The Equipment Monitoring Impact on Process

For many companies, monitoring machines can be limited to simply tracking planned and unplanned downtime for maintenance operations. The real-time capture of downtime data can produce valuable trends to help prioritize and implement corrective action to prevent additional equipment failures, as an example shared by Reliable Plant magazine.

Others may include monitoring for production purposes, such as tracking cycle times. There is plenty of intelligence to be gleaned in these areas from equipment monitoring solutions, such as Scytec DataXchange, like machine utilization to determine if there is greater capacity available to take advantage of increased demand. But one manufacturer took its usage of DataXchange a step further to impact process.

The QC impact from equipment monitoring

One manufacturer of structural parts for jet OEMs sought to take their machine monitoring instance beyond downtime and production purposes to better understand what work offset was delivering low-quality parts.

A Use Case For Work Offset Monitoring

With FANUC CNCs, the external work offset (work coordinate system number zero) lets you shift the point of reference for fixture offset entries from the machine’s home position to a more logical position, writes Modern Machine Shop. Senior Aerospace AMT, a manufacturer of structural parts for jet Original Equipment Manufacturers (OEMs), sought to understand what work offset was delivering low-quality parts. Leveraging the power of DataXchange, the company started tracking probing adjustments made to work offsets to begin building a historical reference. This way, they reasoned, engineers can check what change to the offset may have had on a nonconforming part.

The Quality Effect

Even more so, by pulling in tool numbers, tool life, maximum tool life, the maximum load, average load and average and maximum vibration – and applying custom variables to know how far and how long that tool is running – the team can better understand the result if something was changed to see if it made the output better, or if the machine is running less or more. The company even integrates manufacturing data from machinery that provides load percentage of spindle monitoring data from DataXchange. And the manufacturer continues to expand its usage of the system, including setting a monthly cadence to verify part standards in ERP to actual cycle times, to meet the needs of its C-suite. “When it comes to responding to customer feedback for feature enhancements and fixes, I’ve not worked with a software company that is easier to work with than Scytec,” says Tom Anderson, Senior Process Engineer at Senior Aerospace AMT.

Free SFA Needs Assessment

Find out how you can monitor downtime, production and work offsets for maximum impact on your manufacturing operations with DataXchange and Shop Floor Automations (SFA). Reach out to an SFA equipment monitoring expert today for a free needs assessment to compare your current state to what Overall Equipment Effectiveness (OEE) and other KPIs you’d like your organization to achieve in the near term.

Legacy Blog – Edition XVI

shop floor automations blog Here are some SFA pieces of product news and MFG Day coverage. Manufacturing Tomorrow especially shared a few of our pieces.

For product news, we thank Manufacturing Tomorrow for covering the news of our latest hardware release, the LAN-USB Connect, which adds USB and ethernet abilities to your machine. MFG Talk Radio also published this piece from us – a top 3 reasons list of why moldmakers need to embrace the IIoT.

Moldmaking Technology also published an article talking about how machine data collection software helps combat downtime.

Finally, it’s never too early to start talking about MFG Day (also known as “manufacturing day”). Fabricating and Metalworking shared our piece last year on shaping the Made in America movement, where we highlighted three organizations helping to make manufacturing great again.

Our newest article from Manufacturing Tomorrow on this holiday highlights three manufacturing companies SFA has worked with and how they are helping to close the skills gap.

SFA has been helping manufacturing companies increase productivity for 20 years now. Call us at (877) 611-5825 or fill out a contact form!

Legacy Blog – Edition XV

shop floor automations blog In this Legacy Blog, Shop Floor Automations thanks these digital publications for sharing our recent news about DNC software, machine monitoring, hardware, and more:

Manufacturing Tomorrow posted a piece we wrote about return on investment (ROI) for shop floor automation solutions. “A great example of actually showing your ROI comes from one of our customers who had an ROI sheet showing that their company had 30 machines, they ran two programs per day, and they loaded 300 programs per week…they then showed how expensive this older process was where they were using outdated shop floor media to transfer programs and estimated how much time/money would be saved by upgrading to DNC.”

MFG Talk Radio published quite a few of our pieces lately. They shared news of our new technology, the LAN-USB Connect. They also shared a piece where we shared with manufacturers how to approach decision makers with ways to prove automation ROI.

FabShop Magazine hosted SFA in the MFG ETC section once again. OSHA’s Top 10 safety violations in 2017 that apply to the shop floor were explored and how some automation solutions can help address some of these issues for 2018 onward.

In a throwback, Manufacturing Engineering published a blog about managing and collecting shop floor machine data. Within this piece, SFA owner Greg Mercurio was interviewed.

For our latest appearances in manufacturing trade magazines, check out our press page. Otherwise, we would love to start the conversation with you about automation! Call (877) 611-5825 or fill out a contact form.  

Legacy Blogs – Edition XIII

shop floor automations blog Document control. Gcode editing. OEE calculation. Documentation of any variety is important to us at Shop Floor Automations, and not just for our customers. We welcome you back to our Legacy Blog series, where we archive past press coverage.

We appeared in the October 2017 issue of MFG News, with a piece reviewing the top three benefits to machine monitoring appearing from us. Updates to DataXchange and an overview of Touch HMI features were also in the issue. We were also in the August 2017 issue of MFG News.

The benefits of cloud-based machine monitoring are reviewed in this piece from us, published in Modern Machine Shop this past January, plus we were mentioned in this piece on R&D Manco. Speaking of Modern Machine Shop, we were also in the February issue with an ad and an article. We have photos of our appearances in this issue on Instagram, too, so be sure to network with us and the #instamachinist movement!

Finally, in the January 2018 Production Machining Magazine issue, we were part of the annual product directory. You can find us under Software>CAD/CAM, Software>ERP & Other Shop Management, Software>Data Collection Devices, and the general directory.

For more information, we would love to start a conversation with you for your productivity needs. Call (877) 611-5825 or fill out a contact form so we can get back to you on your time. 

MTConnect vs OPC UA

mtconnect In the January issue of Modern Machine Shop, Josh Davids of DataXchange discusses the difference between two different, popular protocols. MTConnect and OPC UA are compared.

“Although OPC UA and MTConnect are both http-based protocols (which makes them usable on internet-enabled networks), the question why MTConnect exists often arises since OPC UA has been around for a while and has wide support throughout industry,” Davids said.

“If we view machine monitoring at a high level, it’s apparent that MTConnect is best-suited for equipment with standardized functions, such as CNC controls or other equipment that has known capability. OPC UA is generally best-suited for one-off integration projects that use programmable logic controllers (PLCs),” Davids continued. “Another difference is that OPC UA can be a read-write protocol, whereas MTConnect is read-only. Nothing can be written back to the machine.”

There is much more insight on why MTConnect and OPC UA are different in Davids’ contribution piece.

MTConnect versus Fanuc FOCAS

MTConnect versus other protocols 

For more information on machine monitoring, DataXchange or MTConnect, please contact us! We are the #1 reseller of DataXchange and we have the distinction of being an MTConnect Institute Roster Member. Call (877) 611-5825 or fill out a contact form.

Machinists Are Not The Problem

cnc machinists When working production on a manufacturing shop floor, productivity issues happen. Nothing is perfect – this includes your employees and equipment.

Some leaders may automatically assume that machinists are to blame for productivity decreases. They think they are not doing their job since they are directly handling the machines.

Before we jump to this conclusion, we need to ask if we are being fair. Especially to skilled workers who are the backbone of the manufacturing industry.

According to a study shared by Harvard Business Review, “when leaders are fair to the members of their team, the team members display more citizenship behavior and are more productive, both individually and as a team.”

With this in mind, here are three productivity problems and the tools you can use to combat each of them. Read on for more! 

Read more

Shop Floor Newsletter – November 2017 – Lights Out Manufacturing

lights out manufacturingThe following is an archived copy of our Shop Floor Automations newsletter from November 2017 focusing on lights-out manufacturing:

2018 is coming up fast. What are your main concerns with your manufacturing production? If productivity is a major focus, then getting started with lights out manufacturing is a good goal to reach for.

We previously focused on lights-out manufacturing (AKA lights out manufacturing) in regards to battling rising electricity costs for 2016. However, the power bill for your shop floor is only one of many concerns.

Does the manufacturing skills gap limit what you can manufacture and get out the door to customers? Do you perhaps want to aim for fewer injuries in the workplace, or want better quality of products? Taking advantage of lights-out manufacturing can help with all of these issues.

One crucial part of adopting lights-out manufacturing in your shop helps to minimize labor costs for each part you make, which in turn helps you compete on a global level. This helps the Made in America movement grow stronger while increasing your profits and customer base.

How can Shop Floor Automations help you begin the path to lights-out manufacturing? Production Machining states that machine monitoring is a pivotal part of the process, since “there is always the possibility of machine failure, cutting tool breakage, power outages, and other unexpected issues.”

Put in a request for more info on lights-out manufacturing by calling (877) 611-5825! You can also fill out a request for info form here. Link to original newsletter here

Manufacturing ROI & Manufacturing Integrators

A monkey wrench style ruler grips several US coins on top of ROI paperwork. As a manufacturer, you have a lot of daily concerns, such as downtime and productivity. Is your manufacturing ROI an issue that is falling to the wayside?

With a new year coming up fast, your ROI (or return on investment) should be bumped up to one of your largest concerns, if it is not already. You may remember when we did a previous blog explaining different types of costs for a manufacturer. For this blog post, we wanted to take the time to explain the top 3 ways that working with a manufacturing integrator like Shop Floor Automations will help you with ROI!

#1 Reduce procurement costs:

The only time you ever want the amount of money you are spending on raw materials to go up is because your productivity is at sky-high levels. Unfortunately, you may be spending a lot on raw materials due to downtime on the machine interfering with the quality of products. You may even be spending a lot on paper for spreadsheets and other shop floor documents. Using tools such as machine monitoring software can help you increase utilization of machines, and combining products like job scheduling software and PDM software can help you go paperless. Do you still use floppy disks or constantly invest in CAT-5 cable that needs to be replaced and restrung once a year? Invest in new hardware that will replace these processes and old media sources. These solutions should help bring down some significant procurement costs.

#2 Time-sensitive efficiencies:

Manufacturing is one of the most time-sensitive processes in the world. Certain quantities need to be done perfectly and they need to be on time. What happens when downtime takes down one of your machines? Or you have to spend time manually updating spreadsheets for your production schedule? Or your CNC’s have communication failures on a regular basis? Using the tools of DNC software for CNC communications, machine monitoring for combatting downtime, and graphical job scheduling to be able to see production changes in real time, all make for the perfect trinity to help jobs get out to customers on time.

#3 Marketplace advantage:

American manufacturing is coming back to a place of significant prominence. While the industry deals with a skills gap combined with reshoring, you need to make sure you can take on as many jobs as possible to stay ahead of the competition. If you spent less time updating spreadsheets, invested in less overtime to fix human error and were able to prevent more downtime on your shop floor, imagine how many more jobs you can take on. Implementing any of the tools mentioned above can help with productivity and cement your place in this industry as a top manufacturer.

If you are interested in these solutions, please fill out a contact form or call us at (877) 611-5825 

MFG Costs, Budgets & Integration ROI

mfg costs mfg budget mfg integrator Manufacturing costs are a pain.

MFG costs and budget comes into play whenever productivity improvements are considered. Costs are sadly not predictable.

There are four variables of expenses when running a manufacturing company. We have broken it down into a driving analogy for our readers:

Fixed Costs: You get in your car, you set up your GPS and map out the trip to avoid tolls. You know how much time it will take to get there and how many miles.

Fixed costs are part of the routine in manufacturing. These cover utility bills, taxes, property costs, and salaries (not counting commission). This also includes office supplies, too.

Variable Costs: When you plan to take your trip, you account for normal traffic patterns that will add a likely delay. It’s an annoyance we have come to both accept and expect for road trips.

Variable costs can best be described as costs directly in relation to production. For example – when you produce more, you ultimately need more raw materials. These patterns are predictable –  remember the old saying “you gotta spend money to make money”?

Semi-Variable & Step-Variable Costs: When you’re on your trip, let’s say a horrific accident happens, or you hit an unexpected detour. These unforeseen but likely scenarios can add time to your trip.

Semi-variable costs account for costs that can vary. This includes commissions for salespeople or production-based bonuses.

Step-variable costs, however, are costs that remain fixed for a period of time, and can suddenly spike up. Unexpected machine downtime, for example, costs money due to stopped production. You may even have to hire a specialist to come out or replace it with another machine.

What is the common factor in all of these examples, though?

If you invested in the GPS, it will reroute you, or add time to your route when you hit traffic or unexpected snags in the road. It is monitoring conditions for you to give you expectations and suggestions on how to improve your route.

How does this relate to manufacturing integration solutions & ROI?

Investing in manufacturing integration solutions is the best ROI when taking into account situations that lead to step-variable costs in your production. It’s essentially giving yourself a GPS to help meet and exceed production goals.

If your machines are consistently having communication errors that cause thousands of dollars in stopped production time, then DNC software or hardware is a drop in the bucket to help prevent this from happening. If there are other issues with machines causing downtime that are not relative to CNC communication failures, then machine monitoring can help for better OEE and for machinists to better communicate issues for proper solutions.

Get in touch with Shop Floor Automations for more insight! You can fill out a form here, or call us at (877) 611-5825.