1. Operational Excellence
The Digital Way
Milesh Gogad
GE Intelligent Platforms
milesh.gogad@ge.com
CII Conference on
Digital Manufacturing
Chennai, India
January 25, 2012
2. Contents
• Industry Challenges
• Operational Excellence
• Tactical Approach
• About GE Intelligent Platforms
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Operational Excellence – The Digital Way
3. “We monitor OEE (Overall
Equipment Effectiveness) manually
on approx. 400 machines through
spreadsheets. It becomes
extremely difficult to understand
the big picture though, not to
mention it is cumbersome enough
to draw any meaningful trends or
drill down into the individual
factors (Availability, Quality and
Efficiency) of OEE from 400
spreadsheets.”
Manufacturing Head
Major Auto Component OEM, Tamil Nadu
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Operational Excellence – The Digital Way
4. “I need to maintain records of
my process parameters on a
continuous basis for
compliance purpose. Hence, my
staff prints records from 20
PLCs through 11 dot matrix
printers every hour, that I sign
on. The result - precious time
wasted in non-value-added
activity and a room full of
files!”
CEO, Mid-Sized Pharma Company
Gujarat
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Operational Excellence – The Digital Way
5. “We monitor downtime on our
machines, record their causes,
and classify them in industry
standard groups – say material
unavailability, power failure, tool
breakage, etc. However, I am not
sure of the integrity of this data.
How do I base my decisions on this
data?”
Maintenance Head
Mid-Sized Auto Component OEM
Karnataka
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Operational Excellence – The Digital Way
6. “We initiated a corporate lean manufacturing program across all our
plants in India. We piloted it through manual processes and systems at
one plant currently, but have concerns over scaling it up to multiple
plants. More importantly, how do we build an ‘operational excellence’
culture in our staff, that sustains itself in the long run… way beyond the
program?”
- VP-Manufacturing, Large Pharma Company, Gujarat
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Operational Excellence – The Digital Way
7. “A wrong ingredient used at an
incorrect stage in rubber processing
results in a lot of scrap, which is a
huge financial loss given the price of
rubber. Hence I need an error
proofing solution that not just
detects, reports and trends such
occurrences; but also acts swiftly
and prevents such things from
happening directly in the process.”
Head-IT
Major Rubber Products Manufacturer
Tamil Nadu
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Operational Excellence – The Digital Way
8. “My steel products cannot have any engraved identification of my
company, hence there is no way that we can identify if and where
there was an error in its manufacturing when a defect is found later in
the market. Instead if the entire genealogy of the product was known,
we could have easily identified and proven if there was an error – say
during the welding or forming process and the process parameters at
that instance in that particular batch recorded somewhere.”
Technical Leader, Major Steel Products Manufacturer, Tamil Nadu
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Operational Excellence – The Digital Way
9. “I have a wide variety in my export
volumes. The same formulation
could have different tablet dosage,
different language instruction
sheets, different packaging and
different norms to comply to, when
exporting to different countries. In
some cases, my packaging machine
change-over and set-up time could
stretch to a day!”
Head-Operational Excellence
Major Pharma Company, Gujarat
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Operational Excellence – The Digital Way
10. Many Questions One Answer Key Enabler
100011100101010010
001010010001010101
011101001010101010
101001101010101010
Operational Technology
Excellence
0010001001001010
0110111100101010
1101010101010100
1101001110100101
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Operational Excellence – The Digital Way
11. Why the shift?
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Operational Excellence – The Digital Way
12. Business Management Perspective
Improve market responsiveness
Reliable and Predictable Manufacturing Base.
Adaptive Manufacturing.
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Operational Excellence – The Digital Way
13. Business Management Perspective
Integrate Production and Supply Chain
Rely on ‘what we ARE doing’ data
rather than the ‘what we THINK we CAN do’ data.
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Operational Excellence – The Digital Way
14. Business Management Perspective
Brand Protection. Quality Assurance
Transparency and tighter real-time controls in operations
to safeguard processes and prevent quality issues.
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Operational Excellence – The Digital Way
15. Business Management Perspective
Drive Sustainable Manufacturing
Visibility into resource consumption in areas across the enterprise ,
empowering them to drive savings as events occur.
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Operational Excellence – The Digital Way
16. Engineering & Operations Perspective
Empowered Operators Better Decisions
Need for tools to help gather, correlate and contextualize raw data
to truly understand operations for better, faster results.
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Operational Excellence – The Digital Way
17. Engineering & Operations Perspective
Insight and Control to drive savings
Increase in Profit =
Plant Revenue * Gross Margin * OEE * Improvement in OEE
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Operational Excellence – The Digital Way
18. Engineering & Operations Perspective
Reduce Integration Costs and Complexity
A single platform to easily extend and connect to data
from otherwise isolated systems.
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Operational Excellence – The Digital Way
19. Engineering & Operations Perspective
Accelerate Continuous Improvement Initiatives
Adopt Lean - Recover value, lower inventory, maximize capital efficiency,
and eliminate excess variable costs.
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Operational Excellence – The Digital Way
20. Operational Excellence Approaches
Rip & Replace
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Operational Excellence – The Digital Way
Image Courtesy: Flickr.com and Vecto2000.com
21. …or a smarter approach?
• Flexible
• Scalable
• Integrated
• Minimum risk
• Open technology
• Demonstrable ROI
• Hardware independent
• Incrementally expandable
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Operational Excellence – The Digital Way
22. Operational Excellence Roadmap
Predictable
OEE Regimen
• Equipment • Digitized SOP Manufacturing • Enterprise
Level • Line • Clever • Plant Efficiency
Integration Operators! efficiency
• Information
Process Integration Process Enterprise
Visibility Reliability Agility
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Operational Excellence – The Digital Way
23. The Operational Excellence Journey
…Tactically Implemented
Quick Results Application Strategic
Strategy Deployments Roadmap
Rapid Capacity Recovery Maximize Local Cost Savings Structural Cost Savings
6 MONTHS 9-12 MONTHS 15-18 MONTHS
P 1.1 Process Visibility
P 1.2 Structured OEE
P2 Specification Management Real Time Quality
P3 Process Digitization Standardized Work
P4 Genealogy Material Impact / Sustainability
P5 Supply Chain Visibility and Optimization Across Multiple Sites
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Operational Excellence – The Digital Way
24. Step 1: Process Visualization
Identify basic down time issues
• Supervisory Control
• Data Collection,
Archival and
Analysis
Helps develop baseline metrics that provide a starting point for measuring
reductions in downtime by providing superior process visualization, data
acquisition, analytics and supervisory control of your operations.
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Operational Excellence – The Digital Way
25. Step 2: OEE Regimen
Focus on work segments
• Equipment Efficiency
• Process Quality
By contextualizing data from several production dimensions (machine, crew, etc. ),
and performing trending and correlation analysis, a deeper insight of overall
production as well as critical process parameters is gained.
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Operational Excellence – The Digital Way
26. Step 3: Process Reliability
Reliable, Repeatable and Accurate
• Work Process
Management (e-SOP)
• Production
Scheduling
Ensures reliable, repeatable and accurate execution as well as visibility into how
efficiently these tasks are being executed.
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Operational Excellence – The Digital Way
27. Step 4: Predictable Manufacturing
Predictable and Adaptive
• Tracking and
Traceability
• Advanced Analytics
and Reporting
Being able to predict and react to changing materials and process dynamics ensures
first-pass quality every time, and helps determine the ideal conditions from which to
generate maximum yield.
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Operational Excellence – The Digital Way
28. Step 5: Enterprise Agility
Improve enterprise efficiency
• Supply Chain
Integration
• Asset Maintenance
Cost
Refining capacity planning for raw materials and real-time process orders, and
integrating accurate reporting enables manufacturers to fully support business
processes across organizational boundaries.
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Operational Excellence – The Digital Way
29. How does GE help?
Proficy™ for Manufacturing
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Operational Excellence – The Digital Way
30. Typical Plant: Before GE
Inconsistent execution of manual Unplanned downtime
procedures introduces inefficiency consumes up to 40% of
and quality problems available capacity
Unpredictable quality and
throughput lead to over-
and under-stocks of key
Finished goods inventories must be ingredients
held at several weeks anticipated Root causes of quality and yield losses are
orders, in order to be sure of meeting unclear – testing and records
customer delivery demands management is largely manual – and
disconnected from the process 30
Operational Excellence – The Digital Way
31. After GE Solution Implementation
Up to 20% of production
Improved procedural execution
capacity is recovered as
enables agility for high-SKU-mix
equipment is proactively
production
tuned for reliability
Material inventory is
balanced to demand and
production capability
Reliable, predictable production
capacity allows finished goods
buffers to be reduced 30% or more Supplier quality is validated,
reducing operational
variability and product risk 31
Operational Excellence – The Digital Way
32. Summary
• Operational Excellence can address many
of the industry’s recurring challenges
• Digital technologies are key enablers
• Need a technology that is open, modular
and scalable
• GE can help!
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Operational Excellence – The Digital Way
33. About GE Intelligent Platforms
Software Solutions & Services
Sophisticated data collection and visualization
tools for production management.
Control & Communication Solutions
Advanced control systems for manufacturing
processes of all types.
Military & Aerospace Embedded Systems
High tech electronics for aerospace,
communications and industrial equipment.
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Operational Excellence – The Digital Way
34. In the ‘Digital’ spirit…
Connect with GE Intelligent Platforms on
http://twitter.com/GE_IP http://linkd.in/ge-ip-ug
http://bit.ly/ge-iptv http://ge-ip.com
Thank You.
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Operational Excellence – The Digital Way