From this article you will learn:
- Where to get data on actual resource use
- How to unleash the untapped potential of resources
- What are the benefits of having data on resource use
The current situation in the manufacturing sector strongly influences companies' decisions on new investments. It is becoming increasingly common to hear about "frozen" budgets or the cancellation of planned development projects. This situation particularly affects industries such as the automotive, furniture and clothing sector. When there is a lack of funds for investments and a need to look for additional savings, companies traditionally look for new ways to optimise and improve the efficiency of the use of resources they already have. The potential and need for such an approach is also shown by statistics. In the PSI report Production in Poland and Industry 4.0 , industrial enterprises asked about the areas requiring the greatest improvements indicated production efficiency (67%), followed by the use of resources (63%) and work organisation (63%). In this short article I would like to focus on the topic of better use of resources. In good times, efficiency tends to be a lower priority than growth (driven by investment), but today it is simply a necessity.
Where did the data come from?
In order to identify areas and potential for improvement in the use of resources, it is necessary to start with a thorough analysis of the current situation and look for wastage. Where to get the data for this?
Information on the use of forklift (man-hours) can be collected from the counters installed on them, although the quality of this data and comparability between forklift trucks of different types is often highly unsatisfactory. Data on worker productivity can be analysed on the basis of time and attendance systems (T&A), but these do not cover all activities in the production process (especially manual ones) and usually require the worker to register manually in the system using a card. A very good complement to these data sources are RTLS (Real-Time Location Systems) solutions, which work similarly to GPS, but inside buildings. By attaching a small locator to selected assets, you can obtain very precise data on how and where they move.
About the resource use indicator
The RTLS-based resource utilisation indicator shows not only exactly how much time, e.g. during a shift, resources were in motion, but it is also able to give their actual productivity on the basis of traffic and location characteristics. The data for the indicator is very reliable, as it is collected from the locators automatically and around the clock. If the locators are additionally equipped with an accelerometer, as in the case of Indoorway, they can detect even small vibrations, such as displacement or rotation. This makes it possible to accurately record the movement activity of an object, allowing an indicator to be created that shows the percentage of movement time related to the total time. This can then be used to create monthly, weekly, shift and even hourly reports, allowing trends to be detected and measured.
Unused resource potential
In my experience, actual resource utilisation is usually lower than assumed. Another common problem is also an uneven load, both in the course of shifts, seasons and by individual resources. Below I present an example for a forklift truck, although a similar analysis could also be carried out, for example, for employees in relation to being in a dedicated work zone.
Based on the above data, one could theoretically make an easy decision to abandon one of the trolleys when both together are only used half of the time. However, this could be a mistake without extending the analysis to include information on how often and in what situations both trolleys are used simultaneously. This is because only an accurate contextual analysis makes it possible to determine whether the current amount of resources is optimal, too much or too little.
In one of the operational diagnoses carried out, such a detailed analysis showed that out of six forklift trucks, a maximum of three were being used at any one time. This formed the basis for recommending a reduction in the number of forklifts.
Another benefit of this type of data is the possibility of changing the organisation of work so that a given resource (trolley, tool, specialist) is used more often and, for example, can support several processes. This is usually very difficult today, because it requires accurate real-time data. RTLS technology already makes this possible. This can be compared to the revolution that Uber caused in the transport industry, which enabled the simple sharing of resources thanks to precise knowledge about the use and location of cars.
Verified information = sound decisions in resource management
Conclusions from the analysis of the indicator allow decisions to be made on purchasing, reduction or reallocation of resources. Such operational decisions have very specific and often significant financial consequences, so it is worth making them in a well-considered manner and on the basis of reliable data.
For example: Giving up just one redundant forklift truck is associated with a reduction in operating costs of up to £15,000 per month (rental, operation and operator FTEs) and many times more (Capex) in the case of autonomous forklift trucks (AGVs).
Want to find out more? Visit the Indoorway solution page and see where the technology for asset movement location and process monitoring is performing well, or email us at indoorway@aiut.com.