Earlier this year, TilliT CEO James Balzary pointed out the biggest myth in the manufacturing industry—that you must be an industry giant to fully digitalize operations. Though you don’t have to be an industry giant to succeed at digital transformation, we do know that having a more connected frontline workforce increases business value and, in speaking with manufacturers around the world, it’s apparent there’s a real trap in perceiving OEE (overall equipment effectiveness) as the sole solution leading to operational excellence. Focusing on OEE as your key metric means you know about your machines, but it doesn’t give a complete picture of your operators and the processes they are responsible for.
To better explain this, let’s look at two manufacturers we work with who at differing levels of digital transformation maturity.
Maturity level 1: Machine metrics
John is in the second year of his company’s digital transformation journey, which has involved the integration of production lines and implementation of a sophisticated digital system to track them. With these updates, the company has brought real-time visibility into asset performance and OEE, along with insight into the specific reasons behind any downtime events.
Installing IoT devices helped John’s team increase OEE figures dramatically, with a 22% improvement within nine months. While this surpassed initial business expectations, it has now plateaued.
An examination of John’s action plans showed a recurring theme—with a turnover rate of 30%-40%, operator training has been an ongoing challenge. His need for re-training is as frequent as efforts to onboard staff, posing a continuous hurdle in sustaining and advancing operational efficiency.
John’s major challenge in this regard is retaining domain knowledge and ensuring an adequate number of trained staff to successfully manage a shift. He has been particularly frustrated by the limitations of his current processes and production accounting systems, which are primarily focused on historical data. These systems fall short in providing real-time directives or proactive measures to prevent mistakes before they occur. As a result, John struggles to manage ongoing operations effectively and mitigate costly errors.
In reviewing his situation, John has realized he doesn't need to add another reporting system, manufacturing intelligence system (MIS) or manufacturing execution system (MES). What he needs is a manufacturing digital operations (DO) approach—a holistic system that goes beyond monitoring and reporting to manage and optimize the entirety of his manufacturing operations.
While MIS and MES excel in offering insights and control over the manufacturing process, John's primary challenge lies in managing the knowledge and performance of his staff. This is where DO comes into play. Unlike traditional systems, DO places the frontline worker at the center of its approach. It revolves around the perspective of the operator, aiding them throughout the end-to-end manufacturing process.
Crucial steps covered in DO include:
- loading raw materials,
- configuring machine parameters,
- conducting quality checks,
- performing maintenance activities and
- cleaning.
By focusing on the operator's perspective, DO enhances efficiency and effectiveness at every stage of production, addressing John's critical need for staff knowledge and performance improvement.
Maturity level 2: Process management
As a manager of a wine-making facility, Emily plays a pivotal role in ensuring that shipped products undergo rigorous quality assurance steps.
In a bold move, Emily's business opted to kickstart their digital journey by starting at level 2 (process management in the accompanying graphic). This strategic decision focused on implementing the DO platform, with the understanding that OEE would naturally emerge as a byproduct of this digital transformation.
Her rationale was clear—by setting up the manufacturing workflow and connecting the machinery, OEE would be automatically calculated as part of the process. Recording of downtime reasons were seamlessly integrated into the system and treated as just another operator activity. This approach allowed Emily's team to harness the power of OEE without it being the primary focus, streamlining their journey towards digital excellence.
With the DO platform implemented, Emily can confidently scrutinize a specific work order, ensuring that every crucial step has been executed. In wine production, a standard batch involves approximately 200 intricate steps, each reliant on the operator's precision.
Now, Emily’s team ensures meticulous execution of work orders using intelligent digital forms. These forms guide operators and act as a double-check mechanism to verify the accuracy of the operator’s work. The system also orchestrates activities across silos, prioritizing frontline worker experience for sustained operational excellence. One way this is achieved is by using the DO system to orchestrate activities across different silos through digital messages.
Emily’s journey highlights the broader potential of DO systems in fostering a holistic approach to digital operations. As businesses navigate the complexities of modern manufacturing, it becomes evident that prioritizing the frontline worker's experience can resolve immediate challenges and pave the way for sustained operational excellence.
Rafael Amaral is the chief technical officer at TilliT, a SAGE Group company. SAGE is a certified member of the Control System Integrators Association (CSIA). For more information about SAGE Group, visit its profile on the Industrial Automation Exchange.
