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Industrial performance in the digital age

Introduction

In the era of Industry 4.0 , where advanced technologies such as automation , artificial intelligence and the Internet of Things (IoT) are transforming manufacturing processes, optimizing industrial performance is becoming a major challenge to reduce costs , improve product quality, and stimulate innovation to meet ever-increasing consumer expectations.

Businesses must take a proactive approach to remain competitive. Productivity and operational efficiency are now linked to the ability to integrate Lean practices and digital tools effectively .

The main KPIs for measuring industrial performance

To optimize industrial performance, it is essential to monitor key performance indicators (KPIs) that measure process efficiency and identify areas for improvement. Here are the major KPIs to monitor:

Here are the main KPIs to monitor:

TRS (Synthetic Rate of Return)

The Overall Equipment Effectiveness (OEE) is a global indicator for monitoring production . It measures the operational efficiency of production equipment. It takes into account three essential factors: availability, performance and quality.

  • Availability : Percentage of time equipment is operational compared to planned time. High availability means equipment is rarely down or undergoing unplanned maintenance, which promotes continuous and efficient production.
  • Performance : Actual production speed compared to nominal speed. Good performance indicates that the equipment is operating at full capacity, without micro-stops or slowdowns, and is meeting the theoretical rate.
  • Quality : Percentage of conforming products compared to the total produced. A low reject rate is essential to reduce waste costs, improve customer satisfaction and increase profitability.

Production time management table showing categories of total time, opening, operation, breakdowns, and scheduled shutdowns.

TRS calculation formula:

TRS = Availability × Performance × Quality

A high TRS indicates efficient use of equipment, and that downtime and production losses are reduced. and therefore optimize operational costs.

Pie chart showing the TRS synthetic yield loss categories by category, and highlights the 3 factors related to TRS calculation: availability, quality and performance

Energy Consumption per Unit Produced (EnPIs)

Energy Consumption per Unit Produced is an indicator that measures the energy efficiency of the production process. It allows to track the amount of energy consumed to produce a unit of product.

Formula:

EnPI = Total Consumption of Energy / Number of Units Produced

Reducing energy consumption per unit produced helps reduce operational costs and environmental impact.

example of dashboards to use to analyze energy consumption

Number of Operators by Turnover (Number of Operators / Turnover)

This indicator measures workforce efficiency by comparing the number of operators required to the turnover generated.

Formula:

KPI MO = Number of Operators / Turnover

An optimal ratio indicates efficient use of human resources, which contributes to the productivity and competitiveness of the company.

Pareto chart showing the ranking of costs for companies: first comes labor costs

Lead Time (Production Time)

Lead Time is the total time it takes for a product to go from order to delivery. It includes all stages of the process, including production, assembly, quality control and logistics.

Factors influencing Lead Time:

  • Inventory management : Availability of raw materials and components.
  • Process efficiency : Speed ​​and fluidity of internal operations.
  • Logistics capabilities : Speed ​​and reliability of transportation and delivery.

A reduced lead time allows you to respond more quickly to customer requests, thus increasing customer satisfaction and providing a competitive advantage.

How to Improve Industrial Performance?

Improving industrial performance requires a combination of methodologies, technological investments and human resource involvement. Here are the main approaches to optimizing industrial performance:

1. Analysis and Monitoring of KPIs

Continuous data analysis and tracking of key performance indicators (KPIs) is the first step to identify inefficiencies and opportunities for improvement. KPIs such as OEE, scrap rate, or energy consumption should be analyzed to:

  • Identify bottlenecks in production.
  • Detect sources of waste (time, energy, materials).
  • Implement action plans adapted to the issues identified.
Pareto chart illustration shows that 20% of causes cause 80% of effects

    2. Optimize Equipment Use

    Equipment reliability plays a key role in industrial performance. To achieve this:

    • Implement preventive maintenance: Identify and resolve problems before they cause breakdowns.
    • Invest in supervision tools (SCADA, IoT) and maintenance management (CMMS) : Monitor the status of machines in real time and optimize their operation.
    CMMS maintenance planning and monitoring application made using power apps, allows monitoring of notices, planning of OTs and reporting via power BI dashboard

    3. Reduce Energy Consumption

    Optimizing energy efficiency helps reduce consumption costs and limit environmental impact:

    • Analyze energy consumption (EnPIs): Identify energy-intensive processes, deploy connected sensors and IoT platforms and invest in less consuming technologies.
    • Use clean energy

    4. Digitize Production Processes

    Digitalization is a major lever for increasing operational efficiency. Integrating digital solutions allows you to:

    screenshot of a power Bi dashboard connected to a GPAO software, which shows the major production KPIs with trend curves

    5. Adopt Continuous Improvement Methods for processes and quality

    Continuous improvement is a pillar to optimize production and quality processes. Several methodologies can be implemented:

    • Lean Manufacturing : Elimination of waste (time, resources) to maximize added value and reduce scrap.
    • Kaizen : Implementation of progressive and constant improvements at lower costs thanks to the involvement of teams.
    • Six Sigma : Reducing variation in processes to improve quality and reliability.
    Involvement of a company's staff in a Kaizen approach, showing employees collaborating to identify continuous improvements. The image illustrates discussions around an idea board, with suggestions for optimizing processes

    6. Reduce Lead Time

    Reducing production times improves the company's responsiveness. To do this:

    • Optimize inventory management to avoid stockouts or overstocks.
    • Identify unnecessary steps in processes and eliminate them.
    • Improve coordination between different departments (production, logistics, quality).

    7. Train and Mobilize Human Resources

    Employees are at the heart of any industrial improvement. It is important to:

    • Train teams to enable them to master tools and methodologies.
    • Encourage the participation of operators in continuous improvement processes.
    • Create a culture of innovation so that every employee feels involved in optimizing processes.

      8. Rely on Partners and Experts

      Working with specialist consultants or suppliers can provide expertise to improve performance:

      • Conduct Industrial Performance Audits to assess process strengths and weaknesses.
      • Engage operational excellence consultants to lead improvement and innovation projects
      • Consult with innovative technology suppliers to modernize equipment.

      FAQs

      Quelle est la différence entre le Kaizen et d'autres méthodes d'amélioration continue comme Six Sigma ?

      Le Kaizen se concentre sur de petites améliorations régulières et impliquant tous les niveaux de l'entreprise, tandis que Six Sigma est plus axée sur la réduction des variations et des défauts en utilisant une approche méthodique et basée sur les données. Les deux méthodes peuvent être complémentaires.

      Qu'est-ce que la méthode PDCA ?

      La méthode PDCA (Plan-Do-Check-Act), également connue sous le nom de Roue de Deming, est un cycle d'amélioration continue qui vise à optimiser les processus en quatre étapes : Planifier, Réaliser, Vérifier et Agir. Elle est largement utilisée pour améliorer la qualité et la productivité dans divers domaines.

      What is the 5S method?

      The 5S method is a work organization tool that aims to improve efficiency and productivity by structuring and standardizing workspaces. It is based on five Japanese principles: Sort, Tidy, Clean, Standardize, and Support.

      What is a OEE?

      Overall Equipement Effectiveness (OEE) is a performance indicator widely used in industry to measure the efficiency of machines and production lines. It calculates the percentage of actually productive production time compared to available time, taking into account losses linked to breakdowns, adjustments, and unplanned stoppages.

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