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 main KPIs to monitor:
OEE (Overall Equipment Effectiveness)
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.
OEE calculation formula:
OEE = Availability × Performance × Quality
A high OEE indicates efficient use of equipment, and that downtime and production losses are reduced. and therefore optimize operational costs.
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.
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.
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.
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.
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:
- Automate repetitive tasks and reduce human error.
- Collect and analyze data in real time for faster decision making.
- Optimize production planning using tools such as ERP (Enterprise Resource Planning) and production management (CAPM) .
- Use low-code tools easily integrated into your production system and easily connected, in particular with BI data analysis tools
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.
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.
