Operational Excellence Industry 4.0 Transformation
2-week Diagnostic 20-week Project
Operational Excellence Performance 4.0
Multi-site engagement across two different countries focused on productivity increase, efficiency of machinery and cycle time reduction improvement which were necessary to achieve ambitious business targets. These goals were achieved by reviewing operational performance management routines enabling fact-based real time decision making.
One of the sites needed to optimize resources while the other site focused on increasing capacity with the overall objective of increasing profitability.
There was limited monitoring and control tools for a sound production management at both sites.
The planning and scheduling process was missing few constraint management principles, resulting in multiple production planning changes & low adherence to weekly plans.
The tools used for planning and scheduling were mostly manual, demanding extra time from the analytics team in order to build analytical insights.
Manual data collection and many Excel spreadsheets were mapped also implying the need of Industry 4.0 applications & Digitalization: KPIs, reports, data, collection & automation.
Formal agreements between sales, planning and operations areas were unclear, generating ‘last minute’ changes in the production schedule.
There were cases of activities with overlapping responsibilities between areas.
Overtime was above the company’s benchmark.
APROACH AND OUTCOMES
RACI ACROSS FUNCTIONS
Streamlined Business Processes and Interfaces: Alignment between Sales and Operations through the implementation of Stage Gates, production priority guidelines and scheduling SLAs.
Reviewed process governance and reporting to create and implement an automated workflow for changes on S&OP.
INDUSTRY 4.0 & DIGITALIZATION
Blueprint for Digitalization and Industry 4.0: Integration of different IT systems into a Business Intelligence platform, elimination of Excel.
Spreadsheets as structural management tools and automation of operational reporting and KPIs.
Digitalization of visual management across the shop floor: Making assignments and give instructions with digitalized data; performance follow up and operational daily & weekly reporting.
Integration of Planning & Scheduling to leverage adherence and reducing changes of production programming with faster analytical insights.
Overtime authorization process was fully reviewed and digitalized.
Implementation of an Operational Performance System: Real time performance monitoring empowering managers and supervisors to make impactful real time decisions on the fly.
Implementation of new daily routines on the shop floor, providing thorough monitoring and performance control.
Enabled a responsive decision-making culture which contributed to the increase of operators’ productivity, efficiency of machinery and cycle time reduction in both sites.