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Elimination of downtime at shift change

Customer

Automobile Parts Manufacturer

Problem

Production capacity waste of 12% due to machine downtime at shift change.

Outcome

Enhanced production capacity and savings of Rs. 15,60,000 per month, by reducing this downtime by 98%.

About the Customer

An automobile parts manufacturer faced a significant challenge—persistent downtime during shift changes. The user operates 39 CNC machines, including turning centers, VMCs, and HMCs. These machines run in three work shifts of 8 hours each: 6 AM-2 PM, 2 PM-10 PM, and 10 PM-6 AM. Downtime issues across all shifts were causing reduced production and economic losses.

Before Leanworx

Prior to the implementation of the Leanworx CNC machine monitoring system, production inefficiencies plagued each shift. Late starts and early stops were the norm, with the highest downtimes occurring at the beginning and end of the third shift. On average, downtime per shift amounted to a staggering one hour, reducing production capacity by a factor of 1/8. Late starts and early stops combined led to 3 hours of downtime per day, equating to 14% of available time.

The Leanworx Impact

Within just two days of Leanworx deployment across all machines, downtime decreased by an impressive 25% without any additional interventions. Over the subsequent three weeks, downtime further plummeted to less than 5 minutes per shift, resulting in a remarkable 12% increase in production quantity.
Leanworx’s specialized feature for CNC machine downtime monitoring at shift changes played a pivotal role. Daily reports detailing downtime during shift transitions were promptly emailed to the shop head each morning. After a period of observation, these reports were openly displayed on the shop notice board daily, exposing the shift change downtime for all machines. This transparency had a profound impact on work ethics, prompting positive changes.
An illustrative report from a machine monitored by Leanworx shows significant shift change downtime. Operating in three shifts with meal and tea breaks totaling 50 minutes per shift, the report showed a total downtime of 18 hours over 6 days, translating to 3 hours per day. Notably, 80% of this downtime was concentrated in shifts 2 and 3.

The Leanworx Benefit

Leanworx highlighted the big problem areas, and the organization acted upon the data. The detailed monitoring and corrective actions led to a monthly savings of Rs. 40,000 per machine. Across all 39 machines, this translated to an impressive monthly saving of Rs. 15,60,000.

Driving Employee Retention and Efficiency Gains

Customer

Automobile Parts Manufacturer

Problem

Challenges in setting operator incentive schemes due to lack of accurate production and efficiency data.

Outcome

42% reduction in Operator attrition and 19% OEE improvement in 3 months.

About Leanworx user:

An automobile parts manufacturer with 130 CNC lathes and machining centers connected to Leanworx, with an average machine hour rate of Rs. 350.

Before Leanworx:

Operators were paid fixed salaries regardless of their actual production or efficiency. Production tracking relied on manual entries, resulting in inaccurate reporting. Use of Feedrate override led to overproduction in day shifts and underproduction in night shifts. Skilled operators and motivated individuals received the same wages as their less efficient counterparts, impacting overall factory efficiency negatively.

The Leanworx Impact

Leanworx’s automated machine operator efficiency monitoring transformed operations by providing precise, operator-specific reports for HR to shape the incentive system. This shift from fixed salaries to performance-based incentives significantly curbed employee turnover, motivating operators of all skill levels. Leanworx’s production monitoring system ensured 24/7 tracking of production and downtime, extracting accurate data directly from the machines’ electronics to eliminate manual errors. The HR department leveraged the following reports to effectively structure salaries and incentives:

● Real-time Production Monitoring: Accurate tracking of production quantities and downtimes.

● Machine Operator Efficiency Report: HR’s tool for salary and incentive determination.

The Leanworx Benefit

In just three months, the implementation of Leanworx resulted in a remarkable 42% reduction in operator attrition, a significant improvement in employee retention. Simultaneously, the Overall Equipment Efficiency (OEE) saw an impressive enhancement, achieving an 19% increase. These swift and substantial improvements underscore the impactful and transformative nature of Leanworx’s solutions in driving operational excellence.

2 year postponement of acquisition of new machines

Customer

Manufacturer of machined castings for export – railway parts, off-road vehicles.

Problem

Inefficient machine utilization, that would have necessitated a massive CapEx (capital expenditure) on 18 new machines.

Outcome

Saving of Rs. 5.6 Cr. CapEx by freezing all new machine purchases, owing to improvement in OEE

About Leanworx user

Operates 56 machines, including CNC lathes, machining centers, and foundry equipment. Runs two 12-hour shifts with 1-hour breaks.

Before Leanworx

Faced the challenge of underutilized machines. A 15% growth in orders required additional capacity, and a significant CapEx on new machines.

The Leanworx Impact

Leanworx efficiently tackled downtime challenges by categorizing issues into two types: low-hanging fruit, quickly addressed through work ethics improvement, and high-hanging fruit, requiring more extensive system changes. The organization’s team swiftly eliminated low-hanging fruit downtime in a month with a pragmatic mix of incentives. The high-hanging fruit required more time and system adjustments, but Leanworx’s systematic approach and insightful reports, including Pareto charts, enabled a targeted reduction in machine downtime.

The Leanworx Benefit

The company successfully reduced downtime to 22% within a short span of 5 months, with sustained improvements in the subsequent 2 years. This achievement led to the postponement of a significant Rs. 5.6 Cr. capital expenditure for new machines by 2 years, by a freeze on all new machine purchases. They were able to cater to the steady 15% annual growth in orders in spite of not buying any new machines..

The end of the 3rd shift

Customer

Aerospace Parts Manufacturer

Problem

Machines ran 24 hours but the productivity was poor. CNC machine spindles ran just 30% of the time.

Outcome

Stopped working 3rd shift with a saving of Rs 14,00,000 per month.

About Leanworx user

Aerospace parts manufacturer with 40 machines connected to Leanworx machine monitoring system. Average machine hour rate Rs. 650.

Before Leanworx

The Machines ran 24 hours, with 3 shifts of 8 hours each. The average spindle run time was just 30% which suggested severe underutilisation of machines.

The Leanworx Impact

By closely analyzing the downtime data and acting to reduce the downtimes, the spindle run time was increased from 30 to 64%. The target production quantities were achieved in 2 shifts instead of the earlier 3 shifts.

The Leanworx Benefit

This transformative shift occurred over a span of seven months, resulting in substantial monthly savings amounting to Rs. 14,00,000. These savings are attributed to a reduction in various costs associated with the third shift, including personnel expenses, power bills, and canteen facilities, among others.

One small fix, a GIANT leap in profits

Customer

Pumps Manufacturer

Problem

One hour downtime every day on every machine led to a loss of Rs 26,000 per machine per month.

Outcome

Downtime that accounted for 4% of total time was eliminated in 24 hours

About Leanworx user

Hydraulic pumps manufacturer with a total of 57 CNC VMCs and HMCs, connected to Leanworx machine monitoring system. Shop works 3 shifts of 8 hours each.

Before Leanworx

In a bay with 8 HMCs, there was a one hour downtime per day on every machine, for the reason ‘Waiting for tool’. Each machine hourly rate was Rs. 1000 per hour, so this was a loss of about Rs. 24,000 per machine per month.

The Leanworx Impact

The introduction of Leanworx downtime monitoring software resulted in the complete elimination of downtime across all 8 machines. This reduction translated to zero downtime, effectively providing a capacity increase of approximately 4% without additional capital investment.

The Leanworx Benefit

Leanworx’s machine monitoring software offers continuous and automatic downtime tracking, providing essential reports for analysis and reduction.

● Reports on late starts and early stoppages, hourly production, produced vs. planned quantities, and cycle details.

● Pareto and pie charts for machine downtime analysis, pinpointing key causes.

● Long-term trends to correlate corrective actions with downtime changes.

● Detailed breakdowns of individual machine downtimes, including start and end times, duration, and reasons.

The firm achieved substantial revenue growth with Leanworx, increasing Rs. 24,000 per machine per month, totaling Rs. 2,00,000 per month for all machines. Leanworx not only enhanced operational efficiency but also delivered significant financial gains for the company.

 

How knowing the production quantity leads to profitability

Customer

Springs manufacturer

Problem

Overproduction due to inaccurate production quantity tracking resulting in excess inventory and increase in inventory holding cost.

Outcome

Improved OEE leading to elimination of production inconsistencies.

About Leanworx user

Springs manufacturer with 45 machines connected to Leanworx, spring making machines and presses. Part cycles time vary from 3 seconds to 20 seconds, with production quantity approximately 1300 to 9000 parts in each shift.

Before Leanworx

Inaccurate production tracking led to significant challenges, including over-production and subsequent excess inventory, leading to increased holding costs. Simultaneously, under-production created delivery delays and hindered effective scheduling. The lack of precise production monitoring adversely impacted the overall operational efficiency and profitability of the organization.

The Leanworx Impact

The implementation of a robust production monitoring system marked a transformative shift in operational efficiency. Leanworx meticulously recorded the actual number of parts produced at any given moment, offering detailed insights through hourly and shift-wise production reports.

The Leanworx Benefit

The elimination of over-production and under-production challenges helped the organisation align production closely with demand. There was a notable reduction in inventory costs contributing to a significant improvement in overall profitability.

OEE improvement by 23% in 5 months

Customer

Automobile Parts Manufacturer

Problem

Reduced production capacity by a factor of ⅛ due to machine downtime

Outcome

Savings of Rs. 15,60,000 per month by using leanworx system

About the Leanworx user

Automobile parts manufacturer. 72 machines connected to Leanworx machine monitoring system – CNC lathes, VMCs, HMCs, sand moulding machines, core shooters, fettling machines. Average machine hour rate Rs. 350.

Before Leanworx

OEE varied from 32 % to 65 %, depending on the type of machine. CNC machines were the lowest.

The Leanworx Impact

Through use of the OEE monitoring system in Leanworx, OEE improved by 23 % on CNC machines, 15 % on foundry machines. This resulted in higher profits because of higher production quantities with the same number of machines, lower cost of production per part, lower rejections, reduced raw material cost.

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