How to eliminate wet well maintenance & premature wear of pumps. A key consideration in the operations of facilities such as data centers is energy efficiency. Unplanned downtime requires hours spent diagnosing the issue, ordering parts, conducting the repair, getting the system back online and waiting for operating parameters to normalize. Doing more with less is a necessity going forward while navigating business during a pandemic. The workbook contains the following metrics: Incidents created over time Preventive maintenance does not take into account usage conditions or failure from improper handling. Financially, operational efficiency can be defined as the ratio between the input required to keep the organization going and the output it provides. Document Control - The ability to find necessary documents as easily as possible is a crucial part of operational efficiency. Determining the right manufacturing KPIs for your company helps establish goals that are tracked and monitored over a course of time—weekly, monthly, quarterly, and annually. If a product was produced with any defective parts, the entire product may require substantive rework, which inevitably affects total cycle times within production. I keep seeing the word efficiency in the manufacturing media. Improving operational efficiency begins with measuring it. Planned downtime is one-sixth the cost of unplanned downtime. This varies from traditional maintenance programs, which are limited by intermittent information and a lack of real-time insights. For more information, visit dattus.com. 5 Key Metrics that Affect Operational Efficiency, Pumping Systems: Essential Now & in the New Year, SEEPEX President Mark Jones on State of Industry Entering 2021, How the Pump Industry Is Dealing With COVID-19, Centrifugal Pumps: The Condition Monitoring Comparison Guide, Water@Work: Emerging Technology & The 2020 Impact, Replacing Metallic Wear Components with Composites in Centrifugal Pumps, In-depth articles on pump industry issues, Expert insights into important topics in the field. imbalanced loads, power mismatch, over/under lubrication, etc.). Net Profit Margin 4. Preventive maintenance had its place 20 years ago, but new technological advances allow for more refined and reliable methods of tracking machinery health and avoiding potential failures. Train, train and train again. Based on the business partners’ questions, IT can provide useful business (effectiveness or value) reports–those that are tied to business processes, goals, and impact–that allow the business to make better decisions and recognize the value of IT services. This review looked at productivity and efficiency in English non-specialist acute hospitals, which account for half of the total health budget, using a series of metrics and benchmarks to enable comparison. It unlocks (through data analytics) real-time insights into the slightest changes in operating conditions—changes that directly affect the quality of the products. Free Download: Enabling Operational Excellence with Manufacturing Metrics. Gross Profit Margin 2. The Performance Metrics Series - 5 Metrics for Operational Excellence Published on December 15, 2015 December 15, 2015 • 37 Likes • 6 Comments Operational efficiency is the ability of an organization to reduce waste in time, effort and materials as much as possible, while still producing a high-quality service or product. Online application availability. Idea of KPIs 2. This is critical because these operational metrics give you a closer look at where your people or systems are falling off track and allows you to take action immediately. The article “Achieving Effective Lubrication” in Reliable Plant and Lean Manufacturing Journal reports that contamination causes 70 to 85 percent of hydraulic system failures. Machine Downtime Security Operational Efficiency workbook . Many jobs lost will shift toward renewable energy. We create jobs and drive change by collaborating with manufacturing CEOs, governments, community leaders, and educators to solve problems and build opportunities. If a machine begins to run slower, your capacity utilization percentage and overall operational efficiency will drop. In many cases, facilities have the space for more customers but don't have enough power for them. © Copyright Cahaba Media Group, Inc. All Rights Reserved. An analysis of efficiency and productivity, OEE is globally recognised as a best practice measure and key performance indicator in a range of industries. For s omeone who is a Constraints Management person, this is the equivalent of saying “Ni” to the Knights Who Say Ni (Monty Python reference, okay?) Unexpected downtime causes serious hiccups for operational efficiency. Quite often, company management is measuring primarily on the input side, e.g., the unit production cost or the man hours required to produce one unit. Planning is divided into 2 stages: 1. With increased competition saturating topline revenue growth, businesses are focusing on improving operational efficiencies and managing cost centers to impact their bottom lines. Some Pitfalls to avoid when measuring operational efficiency. In this era of demanding conditions, operational efficiency has never been more vital. Phase One entails a review of Ex‐Im Bank’s metrics for operational efficiency and a comparison of those metrics with other ECA practices based on an OIG survey of twelve ECAs (ECA Survey). Online application performance. Consider utilizing a computerized maintenance management system (CMMS) to schedule maintenance activities in advance. They can save money by scheduling planned maintenance rather than incorporating it in an emergency. It is also important to measure the variability of performance (discussed further in the supplemental operational metrics section). Learn how early adopters are benefitting from emerging technology as well as the impact COVID-19 has had on water management. Continuous data gathering and analytics are key to understanding how assets are functioning in real time. An OEE score presents “an accurate picture of how effectively your manufacturing process is running. International pressures require machine shops to compete at a higher level, doing more with less, and manufacturing facilities have been forced into 24/7 operation. Avoid falling behind by keeping detailed service records and updating your existing machinery as needed. efficiency in our hospitals so they can meet this expectation. Specifically, track unplanned downtime as a topline KPI. This indicator should be measured by a ratio (generally represented by a number) which portrays the progress of the process as a whole or in part. As a result, equipment reliability has become a core industry concern. Few deny that demands from the manufacturing and energy sectors will continue to drive industry growth. Understand what your customer wants 2. In Part 4, we’re getting technical, describing operational metrics: scaling milestones & contraction triggers, sell-through rate & inventory turns, A/R aging & bad debt, and fixed vs. variable operating expenses. If a machine is not running at 100% output capacity—meaning that it could be producing more products at a higher rate—there is an opportunity to scale production and increase efficiencies. Identifying and measuring the right metrics is crucial in effectively evaluating your manufacturing performance and aligning your key assets - people, processes, and technology - to achieve a model of Operational Excellence. Manufacturing companies often measure operational efficiency by percentage yield. The result? 4. Missed your issue of Pumps & Systems because you are not at work? One facility, for example, follows a two-production-shift followed by one-maintenance-shift cycle every day. We report specific metrics of operational efficiency before and after system-based changes that we describe in detail, in an effort to demonstrate and quantify the improvements in efficiency we have realized with a systematic approach to quality improvement. Choosing digital transformation metrics. One of the most important metrics to track to gauge operational success is efficiency. Once you’ve defined and selected the metrics you’ll use, it’s important to find the inflection point of the digital KPI growth trajectory. A simple 3 percent improvement in uptime or operational efficiency can result in a $2 million impact on any continuous manufacturing operation’s bottom line (assuming the cost of unplanned downtime is more than $20,000 an hour). What is a Minimum Viable Product and How Do I Create One? When employees know exactly who to communicate downtime-related issues to and when, they’re able to relay issues faster, lowering risks and increasing productivity. The evaluation consistsof two phases. If one area of the production line is backed up due to an unusable asset, full production may come to a screeching halt—resulting in increased costs, missed customer deadlines, and lags in efficiency. To begin tracking efficiency across your operations, begin with the lifeblood of your manufacturing plant—the machines. If a certain timeline was established with an end-user, it’s up to the manufacturer to efficiently produce that product to meet deadlines and keep customer satisfaction up. Continuous monitoring can make that a reality. If a facility uses a predictive and prescriptive approach via continuous monitoring, it will reduce the amount and cost of downtime. ... And while there are attempts to coordinate metrics and data between departments and functional areas, there is only so much that can be done before the data sets become too unwieldy to allow them to be used at a … OTD measures the amount of finished goods or services delivered to a customer on time and complete. Intermittent maintenance schedules may not catch these inadequate conditions until it is too late. Productivity: Metrics that Matter…Until They Don’t. This knowledge also enables facilities to better learn and understand their equipment and to reduce unplanned downtime. MAGNET is part of the NIST and Ohio Manufacturing Extension Partnership (MEP) program to support small and medium manufacturers across the US. Net Profit 3. Improved operational efficiency across production and fulfilled, happy customers. For example, you may consider prototyping new products or product advancements to identify and fix defects before advancing in the production process. Operational efficiency, also known as operational effectiveness or operational productivity, is a metric used by organizations worldwide. >>>Related Resource: Discover how to break down information silos between departments. Asset efficiency is critical, but, in order to fully thrive, companies must improve their overall operational efficiency. Continuous data gathering and analytics are key to understanding how assets are functioning in real time. MAGNET is a non-profit consulting group. Efficiency can be improved by installing energy efficient computing equipment and cooling systems. Analytics enable engineers to move from an original equipment manufacturer (OEM) specified maintenance regimen to one that is defined by actual usage and observed failure intervals. If plants can predict maintenance, they can diagnose the problem and have parts ready ahead of time. Continuous monitoring offers actionable insights that empower operators to make better decisions. Continuous tracking and quality testing are key to optimizing yields, but monitoring machinery also may help achieve this purpose. With the right implementation, continuous machine monitoring can improve production and increase equipment effectiveness. The return on investment can often be achieved in less than two years. According to downtime consultants, the majority of manufacturers face a 5% loss in efficiency due to downtime—but it can be as high as 20%. Achieve the coveted near-zero downtime, companies must improve their overall operational efficiency and the Limits of Lean Six. Should plan maintenance around load rather than planning load around maintenance is energy efficiency predictive and prescriptive approach continuous... Not all, is it `` available? how a minimum viable will. Asset ratio improving operational efficiencies and managing cost centers to impact their bottom lines drive industry growth ’ operational... 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