How to Improve Resource Utilization with Real-time Operational Intelligence

In today’s competitive environment, it is imperative that manufacturers utilize resources efficiently and effectively. There are typically three main categories of resources in manufacturing: labor, materials, and equipment – and companies need to track all 3 of these to avoid inefficiencies and minimize production costs.

Robust resource utilization requires a proactive approach and innovative tools that do not rely on outdated data for decision-making. With Industry 4.0, the use of connected equipment and machines is becoming the norm, Real-time Operational Intelligence (RtOI) is the future of manufacturing. Software solutions like Matics manufacturing analytics enable companies to collect and analyze vast volumes of real-time data that is used to improve decision making. This allows manufacturers to reduce the time it takes to see, analyze and react to production events, improving productivity. Access to real-time data enables better tracking and utilization of labor, materials, and equipment along the production line.

?

What is Resource Utilization in Manufacturing?

Resource utilization is simply a calculation of how well a given resource such as personnel, labor, or raw materials is being used. This calculation can be for a specific project, manufacturing line, or even across the entire plant.? Resource utilization metrics are key KPIs for companies as they given insight into various aspects of efficiency and productivity.

Regarding materials utilization, the goal is to ensure materials and components are available where and when needed along the production line, at just the right quantity. For labor, resource utilization gives an understanding of how over- or underutilized personnel are within the facility, with the objective of improving workforce productivity. Similarly, resource utilization for equipment assesses the level of machinery outages and time spent offline with the intent of optimizing equipment usage.

?

Benefits of Robust Resource Utilization

Proper management of resource utilization adds significant value. Actionable insights from RtOI tools, like Matics manufacturing analytics, offer personnel exceptional levels of visibility.? Below are some of the benefits of robust resource utilization.

Reduced Capital Expenditures and Higher ROI: by increasing the utilization of existing machinery and equipment, businesses can often minimize – and even eliminate - new capital purchases because of the capacity that is unlocked. Additionally, optimized resource utilization often results in a higher Return on Investment, ROI.

Optimized Raw Material and Product Inventories:? inventory is often one of the most valuable assets within a company and balancing between the risks of surplus or insufficient inventories is a challenge, especially for complex supply chains. Overstocks and shortages of inventory both have detrimental effects financially as well as on your brand reputation.? Inefficiencies in inventory management lead to waste and extra cost, thus, it is critical for companies to have accurate and timely data regarding materials and inventory. Robust planning and resource utilization results in optimized inventory levels, reducing the costs associated with surplus inventory including warehousing expenses.?

• More Efficient Overhead: when machinery, materials, and personnel utilization are optimized, operations are streamlined and there is less time spent expediting and checking on the status of various steps along the supply chain. Thus, the overhead function performs more efficiently and can focus on more value-added tasks.
• Increased Efficiency and Product Quality: in a competitive market, even a small increase in productivity can offer a huge advantage to your company. With proper resource utilization, machinery and personnel schedules are optimized, enabling operations run more smoothly. When production is running seamlessly, there is less opportunity for error or product that does not meet specification. Fewer bottlenecks and outages result in higher product quality.
• Faster Speed to Market: robust resource utilization minimizes “waiting” between each step of the supply chain. This approach shortens the overall supply chain duration, ensuring products arrive to the customer on or before the desired delivery date. A faster speed to market can often result in an advantage over the competition when time is of the essence.
• Higher Satisfaction Levels:? customers that consistently receive on-time deliveries of high-quality products make for more satisfied customers.? As is true for most sectors, happy customers are repeat customers. Additionally, personnel that are utilized optimally – and are not under or overworked - are often more satisfied.

?

Why Companies Rely on Matics Manufacturing Analytics

As manufacturers worldwide adopt industry 4.0 best practices, having real-time insights, optimizing data collection, and streamlining remote production floor communication and management is becoming more critical. The key advantage of integrating RtOI solutions in manufacturing plants is the ability to waste less time manually looking for and managing what technology can instantly identify and do. This enables manufacturers to reduce the time it takes for them to see, analyze and react to events, improving efficiency and productivity.? The Matics RtOI solution enhances manufacturing processes, improving communication and visibility, and providing a user-friendly and effective way to aggregate, analyze and act on the shop-floor – leading to improved resource utilization. Below is a bit more about Matics manufacturing analytics.

• RtOI platforms provide alerts in real-time of potential outliers or shifts in performance levels. However, what managers can do once informed of a situation is the key differentiator of RtOI solutions; RtOI platforms have built-in management controls, enabling managers to react to triggers and alerts directly from their dashboard, internally communicating with relevant personal, assigning tasks, and overseeing the entire process from their dedicated dashboard. Some RtOI solutions also have a persona-based personal assistant application, making it easier for each stakeholder to see the precise information they need in the way they need it to enable them to perform their job in the best way possible.
• In addition to providing actionable insights that enhance shop-floor visibility by analyzing real-time data, RtOI platforms can also provide predictive insights by aggregating and analyzing data and learning unique shop-floor behavioral trends within a factory or production process. This enables RtOI solutions to accurately predict the likelihood of events, such as maintenance or quality issues and alerts, before they impact operations, further enhancing operations and OEE.
• RtOI solutions also enhance knowledge capture and retention by organizing communication per job, enhancing the ability to view insight in a contextually relevant way alongside historical correspondences, improving transparency within the entire shop floor.

About Matics

Matics is a Real-Time Operational Intelligence solution that was designed to enable rapid Industry 4.0 best practice adoption via a user-friendly non-disruptive digitalization platform. Matics manufacturing analytics instantly improve visibility and shop-floor management, reducing response time to critical events, and increasing OEE and profitability.

Matics manufacturing analytics solution continually aggregates data in real-time, transforming it into knowledge manufacturers can use to optimize key metrics on their shop floor. Matics provides manufacturers with powerful work management tools that deliver notifications when attention is needed and enable remote tasks management, process automation, and more.?

Over 80% of manufacturers do not have real-time solutions on their shop-floor. Below are a few leading manufacturers who choose to digitize their facilities with Matics manufacturing analytics solutions:

???

Ready to upgrade your shop floor to Industry 4.0? Visit our website to learn more about Matics manufacturing analytics or to book a demo .