Modern Machine Shop

DEC 2016

Modern Machine Shop is focused on all aspects of metalworking technology - Providing the new product technologies; process solutions; supplier listings; business management; networking; and event information that companies need to be competitive.

Issue link:

Contents of this Issue


Page 40 of 164

38 MMS December 2016 DECIDING FACTORS A Focus on Data-Driven Manufacturing the FOEE concept shows the power of data-driven manufacturing and the Industrial Internet of Things to transform decision-making not only on the shop floor, but also in the front office. Tempus EE automatically collects the event details necessary to compute OEE. The first phase of FOEE applies to stand-alone machines making a finished product. FOEE requires three key finan- cial input values for each product and the machine. These inputs are unit sales price, unit material cost and the hourly operational expense (OPEX) of the machine. This information can be derived from the ERP product standard and the income statement. FOEE is the current-state hourly profit divided by a value representing a world-class level of profit. This ratio tells a company what profit it made compared to what profit could have been made at world-class levels. With this information, a company can see the financial value of improving the machine's performance. In the figure on page 40, a product called P0006 is analyzed over 180 days. The product-run OEE data is correlated with the three inputs necessary for FOEE. It also associates important actionable data such as profit contribution per hour and current FOEE based on the machine's best FOEE percent- age, as well as how much more profit would accrue by running the machine at its best OEE rate. With FOEE, managers can look at jobs scheduled for a machine and make decisions based not just on utilization, but also on utilization and profit. This enables managers to compare a list of machines capable of running a certain job, and to determine which machine would yield the highest hourly profit. Just as the OEE figure related to each project or job is a key tool in prioritizing and evaluating continuous improvement projects, FOEE provides a quick view of the profitability opportunity for these projects. FOEE is a tool to make better business decisions for scheduling products, guiding con- tinuous improvement efforts and giving important feedback to sales and marketing teams. Visit to request your Speroni MAGIS no-risk trial today. THE MOST REPEATABLE BENCHTOP TOOL PRESETTER AND WE'LL PROVE IT. The construction characteristics of the Speroni MAGIS make it the most robust, accurate and repeatable benchtop model on the market. Gauge R & R tests prove the precision during length measurements, but even more impressively in diameter. Don't believe us? Test the Speroni MAGIS in your shop to see the proof. 1 2 3 4 5 6 7 8 9 10 .0020 .0025 .0015 .0010 .0005 0 Gauge Repeatability and Reproducibility Measurement No. Brand A test Brand B test Speroni test Diameter (in.)

Articles in this issue

Links on this page

Archives of this issue

view archives of Modern Machine Shop - DEC 2016