Unlocking Manufacturing Success: Exploring the Power of Digital Manufacturing and Key Performance Indicators

Stellium Inc. , in collaboration with SAP , recently hosted the Digital Manufacturing Info Days event in Riyadh, Saudi Arabia. The event aimed to explore the #transformative potential of digital manufacturing for industrial customers and provided a platform for industry leaders to share their insights and experiences.??

The event covered topics including Industry 4.0, digital twins, predictive maintenance, and the role of data analytics in manufacturing. Rajib Kumar Jena Jena, VP Delivery and Innovation at Stellium, spoke on the topic "Measuring the Success of a Digital Transformation", about the importance of digital transformation in the manufacturing industry. He highlighted the need for companies to adopt innovative technologies and strategies to remain competitive in today's rapidly evolving business landscape.??

During the insightful session, Mr. Jena?delved into various objectives manufacturers should strive for on the shop floor, key technologies that can play a role in achieving those goals, and the key performance indicators (KPIs) to track and expect improvement over the course of transformation. These KPIs provide valuable insights into the effectiveness and efficiency of manufacturing operations, have a significant impact at all levels of the manufacturing ecosystem and show the direct effects of a strategic digital transformation.

Business Level Considerations & Impacts:??

?? On-Time Delivery: Ensuring timely delivery of products and services??

?? Schedule Conformance: Adhering to planned schedules and timelines?

?? Profit Margin: Maximizing profitability and maintaining healthy margins?

?? Stakeholder Satisfaction: Meeting the expectations and needs of stakeholders?

Plant Level Considerations & Impacts:??

?? Direct Labor Costs: Optimizing labor utilization and minimizing costs?

?? Lineside Inventory Costs: Managing inventory levels and reducing associated expenses?

?? Operational Equipment Effectiveness: Improving equipment efficiency and productivity?

?? Inventory Turns: Enhancing inventory turnover rates for better cost management?

Line Level Considerations & Impacts:??

?? Throughput: Maximizing production output and capacity utilization?

? Start on Time: Ensuring smooth and timely start of production processes??

?? Build Conformance: Meeting quality standards and specifications during production?

?? First Pass Yield: Achieving high-quality production without the need for rework??

?? Defect Per Unit: Minimizing defects and improving product quality?

? Unplanned Downtime: Reducing unexpected machine breakdowns and downtime?

?? Rework Time: Minimizing time spent on reworking products or processes??

?? Finish on Time: Meeting production deadlines and completion targets?

?? Past Due Orders: Reducing the number of orders that are past the due date?

?? Changeover Time: Optimizing the time taken for equipment changeovers?

???? Scrap: Minimizing waste and reducing scrap generation?

Asset Level Considerations & Impacts:??

? Uptime & Availability: Maximizing the operational time of assets and minimizing downtime?

? Actual Cycle Time: Optimizing the time required for a complete production cycle?

?? Utilization: Maximizing the utilization of assets to improve efficiency and productivity?

These KPIs are critical indicators of business success. A digital manufacturing solution should enable organizations to easily measure and track these KPIs and use this data to identify areas for improvement and optimize their manufacturing processes. By leveraging the right digital manufacturing solutions for their business, industrial customers can enhance their #operationalefficiency , #reducecosts, and achieve #sustainable growth.?

Further, SAP's digital manufacturing solutions showcase demonstrated how companies can leverage technology to optimize their operations and improve their bottom line. Participants had the opportunity to see firsthand how SAP's solutions can help them streamline their processes, reduce costs, and improve their overall efficiency.?

At Stellium Inc, we are committed to driving digital transformation in the manufacturing industry.??

We are dedicated to helping our clients unlock the full potential of digital manufacturing and empowering them to thrive in today's rapidly evolving market.?

Write to us at [email protected] to schedule a free consult with us.