Increase your Manufacturing Plant Profits Exponentially :Industry 4.0, Minimum basic level industry 4.0 to start with good ROI with minimum Investment

#Linkedin : There is confusion among the manufacturers about building an industry 4.0 road map & implementing the same. The reason for this is lack of leadership which can bring all separate islands of IT, OT, Sales Marketing, Business, Production, customer experience, feedback & market dynamics together on single handy dashboard and have easy strategic decision making to get value proposition, handle business dynamics, maintain competitive advantage with the help of AI. This need to be complemented by plant level & corporate level war room process to achieve short term, long term KPI focusing on business value. Some companies initiate with migration of OT platform to single OT OEM which may be very costly, time consuming and not always prerequisite for industry 4.0

Factors that affects Per Unit Manufacturing Cost:

Multiple factors that affect your plant profits including Raw Material cost, Fixed processing cost, material waste, time loss during processing.

Time is also important parameter. Some factors listed below contribute to unproductive or less productive time and finally to increase per unit manufacturing cost. These parameters need to be measured and controlled within target range.

1] Working time   2] Machine Basic Speed 3] Downtimes 4] Engineering downtime 5]Quality control downtime 6] Break-times 7] Facilities stoppages 8] No schedule 9] Meeting time 10] Material shortage time 11] Waiting for Lots    12] Setup & Conversion times  13] Housekeeping time 14] Rework time   15] Machine Breakdown times 16] Logistics related losses such as waiting for Parts 17] Waiting for Personnel 18] Waiting for Instructions 19] Waiting for quality confirmation 20] Waiting for Tools 21] Poor skills resulting in longer time taken to execute tasks/jobs, etc.

Some high level action items to improve profits:

1. Launch high value (high value to end user) innovative products.
2. Start measuring the factors contributing to per unit product cost.
3. Set high priority short term KPI targets to reduce heavily contributing factors & track on daily basis.
4. Link High performance KPI achievement results with related employee variable pay(Increase Monthly variable by +10 % if KPI achieved is >90%. Do not reduce variable in any case).
5. Cost bench-marking for existing products.
6. New product cost estimation & fitment with market competition.
7. Implement predictive analytics for critical equipment to improve production up time.
8. Optimize inventory, monitor & reduce scrap.

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