IOT in Activity Based Costing
Two of the key performance indicators (KPI) in the manufacturing industry are MTBF (Mean Time Between Failures) and MTTR (Mean Time To Repair). MTBF is a performance metric that measures the time elapsed between when a failure occurs and the next time it happens. MTTR is the time spent to conduct repairs once a failure occurs. Both these KPIs are calculated by dividing the total time taken respectively by the number of failures. While these are good indicators of performance, they are flawed. Failures cannot be foreseen as they are not uniform and can occur at any point in time. In the case of repairs, it may take longer for some than others. That is why these metrics lack real-life accuracy
Shop floor workflow in electronics manufacturing for higher ROI
Activity Based Costing is widely used in the manufacturing industry. However, it comes with its fair share of criticism because it is difficult to correctly estimate the number of resources required to perform a production task efficiently
IOT in management controls – Workflow monitoring
Using shop floor workflow monitoring solutions, it is possible to successfully obtain operational information from machines that are variable in nature. The actual operational times of the production processes can be analyzed and resources can be allocated accurately. Maintenance can be scheduled based on the number of hours used. This eliminates the need to estimate KPIs like Mean Time Between Failures and Mean Time To Repair by providing us actual figures of usage. No excess resources will need to be allocated. This will, in turn, improve operational efficiency and ultimately lead to a higher Return on Investment (ROI).
Shop floor workflow monitoring solutions can help to improve the audit and schedule of proactive maintenance schedules by gathering operational data such as hours used, operating environment, the time spent by the workforce in production zones, time to repair a piece of equipment, abnormal handling of equipment by users, running hours, etc. Helps to ascertain Mean Time Between Failures (MTBF) and Meantime Between Repairs (MTBR)
Most of factories and warehouses employ technical staff to conduct periodic check and repairs to ensure the asset equipment are up and running all the time. Unexpected breakdowns can lead to a loss in revenue, opportunity costs, unsatisfied customer, etc. Using our shop floor workflow monitoring solutions, your own technicians will be able to remotely monitor the fixed assets to help prevent breakdowns.
IOT industrial shop floor workflow monitoring
Implementing a retrofit IOT solutions with noninvasive sensors and integrating data visualization tools can help businesses to improve equipment uptime, track & trace of critical plant and machinery in factories, shipyards, mines, supply chain environments, warehouses, etc, which otherwise takes many man-hours of unproductive work.
Condition monitoring, anomaly detection solutions for industrial automation can help businesses improve operational excellence by proactive maintenance, optimizing spares inventory, and reducing the energy consumption of various heavy industry equipment.
Call us at the following numbers to more on how IOT in management control system will assist in implementing shop floor Activity Based Costing