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Manufacturing Data
- Its accuracy, collection and use
During the past several • Most corporations spend enormous
decades, managers have expended amounts of money finding and
great effort to stay abreast of the fixing bad data. Inventory write
latest information technologies (IT). downs, invoicing errors, improper
Despite this effort, managers still do costing and sales information,
not have the accurate, timely, and incorrectly manufactured products,
useful data they need to be effective. late shipments and delayed
Data failures are embarrassing and financial reports. Accurate profits
costly. No industry--communications, every month permits more
financial services, manufacturing, intelligent management decision-
health care or government is immune. making during the year rather than
The garbage-in, garbage-out crisis actions at the end of the year
syndrome is more pervasive than ever. to recover from serious "surprise''
, even generally tolerant ones, write-offs
are especially angered by poor quality • Poor quality data sabotages
data that affect them personally (like strategy, tactics and operations.
billing mistakes); the employees who
must interact with those customers Identify Poor Quality Data
feel the impact.
There is a natural human According to a recent survey by
tendency to assume that "if it's in the ComputerWorld, almost 67% medium
computer, it must be right." This is and large companies admitted to
especially true for people who do not problems resulting from inaccurate,
know how the original data was outdated, or missing data. Companies
collected. Thus, less experienced users who are committed to data quality are
are more easily victimized by bad in a strong position to tackle the
data. problem.
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electronically to payroll, costing,
scheduling and quality.
What data is collected from the
floor? We are now dealing with a single
database and have much more control
In order to analyze and improve over data integrity, flexible reporting
data collection it is useful to review etc.
what data is commonly collected from
the shop floor. Time and attendance,
scheduling, inventory movement, Data Quality
costing and quality information (SPC,
ISO900) among others are routinely There is no debate, if
collected by small and large manufacturing is to be planned and
manufacturers alike. controlled effectively there must be
accurate data. There is also no debate
Typically companies have not that in most companies the data in the
integrated any of these systems. This key manufacturing records contains a
extends collections efforts, duplicates high percentage of errors. Therefore
data and is the source of many errors. manufacturing cannot be planned and
controlled effectively in most
Integration is the Key companies.
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• High expectations must rely on shop floor data and they
• Data Ownership clearly assigned cannot validate each piece of
• Measuring accuracy information.
• Fixing root causes of data errors
• Data Collection Tools Many crises on the factory floor
can be traced back to data errors in
Reviewing each of the five steps reporting the wrong quantities, in-
required to achieve high levels of correct part numbers or improper
record accuracy will soon show orders. There are others, of course,
convincingly that the out-of-pocket who pay a high price for record errors;
costs can be very small. All of the principal among these are customers
requirements represent simply sound who don't get deliveries when they
management and involve very little want and need them and companies
expenditure of money. Eliminating which support excess inventories they
errors can be done quickly, incur little don't even know they have.
cost and generate very real savings.
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dependent upon an item's value, Scheduling
availability and method of handling
and counting. For expensive electric You will be able to display
motors, chemicals, machine frame dynamic information regarding
castings, air conditioning units and the production, idle time, machine
like an error of one will be downtime, auto mode active, if you
unacceptable; the tolerance range is need to send a message to a specific
plus or minus zero. machine tool operator, it's no problem.
For mass-produced items
measured with counting scales, a Time and Attendance
range of plus or minus 2% is
adequate. For low value packaging Time cards make accurate cost
materials, fasteners, commercial allocation difficult.
hardware and similar items a tolerance For example, when a worker
range of plus or minus 5 % is probably received a shop order, they are
acceptable. supposed to report the time the
product was being worked on.
Data Collection Tools Traditionally employees complete their
time cars at the end of the shift. It is
The proper data collection tools almost impossible to accurately record
minimize activities that people do not all of their activities that day and this
do well such as transcription, format data is frequently inaccurate.
changes, data entry, and so forth. The Statistics show that the average time
necessary tools for accuracy include card requires 12 minutes of time for
bar code readers, EDI, software the operator to complete and office
validation and eliminating duplicate personnel to enter the information into
data entry wherever possible. the payroll system. This amounts to
Key characteristics of data one hour per week or 50 hours per
collection tools include: year per employee.
(1) Collecting data as efficiently,
accurately and be cost effective by Additional expense is often
avoiding time-consuming keying and spent entering this data into job
rekeying of data. costing or routing data bases.
(2) Be simple to use require minimal
operator training and support If we can collect his
(3) All manufacturing information, electronically it will be accurate and we
wherever generated, will reside in a can use the same data to feed not only
single industry standard multi user payroll but costing and scheduling. All
relational database. this at a cost of only several hundred
dollars per employee. The payback on
Benefits these systems is frequently measured
in weeks.
To reach world class
manufacturing data must be analyzed Job, WIP and Inventory Costing
and acted upon. During this process,
data must be shared by the shop floor, This data is also required for SPC,
engineering, quality control, and Scheduling, Job Costing and Inventory.
management. The faster data is Other data that will be tracked by the
circulated, the sooner it can be acted system will include:
on. • No. of Scrap Tickets
• Dollars Scrapped
• No. of High Priority Work
Orders
Emergency Breakdowns
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Factor Scheduling Costing Payroll MRP SPC ISO9000
Real Time Information Reduce Cycle Time On line WIP On line Real time on Don’t make more Record that a operation
On line status reports Payroll hand defective parts was performed
Where is the order? inventory waiting for results
When will it be complete?
Instantly communicate schedule
changes to entire company
Accuracy Accurate set up and run times Ensure labor and Eliminate Accurate
Accurate Routings material standards payroll BOM’s
are accurate errors Accurate on
hand
inventory
Customers Improve on time deliveries Eliminate
delays from
missing parts
Audit Trail Monitor labor productivity against Dollars and reasons Lot and serial number
standards for scrap by tracking
employee, work
center and operation
Decision Support - What should be worked on next
Shop Floor
Supervisors Reduce unplanned overtime Eliminate waste Automat
Employee productivity is measured e time
and
attendan
ce
Management Accurate real time data for Pricing
feedback Product Mix
Generate accurate reports on Customer Profitability
demand Product Design
Capacity info. for capital budgets Production Operations
Evaluate savings from set up improvement
reduction priorities
Evaluate plant layouts
Analyze labor & equipment
efficiency
Reduced data entry
time
Eliminate paperwork
Reduced data entry
cost
Benefits Data for Activity Items don’t view auto cad drawings
Based Costing get “lost” in ensure correct
Machine downtime warehouse materials are used
Monitor yields Engineering change
notices
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MRP SPC
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an approval/editing step by a manager • Assist with ISO requirements that
or supervisor and the creation of an operators are aware of latest
audit trail a final “update” to the real revisions
data base takes place. For transactional • Allow operators to attach comments
type data - hours worked against a job, to a drawing suggesting
scrap tickets etc. an extra validation improvements or tips for other
step is warranted. operators.
Drawing Files
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