John Mitchell, business development manager at CP Automation, examines the essence of lean manufacturing
European manufacturers are estimated to spend over €400 billion every year on maintenance activities. Studies show that about 30 per cent of failed machinery can be repaired at half the cost of buying replacements, which suggests a potential 15 per cent saving. John Mitchell, business development manager at CP Automation, discusses the issues that stop manufacturers cutting costs and improving productivity – the essence of lean manufacturing.
Perhaps the first thing manufacturers should consider when addressing efficiency is keeping assets low.Manufacturers can easily eliminate excess inventory from their books, and thus get better return on net assets,simply by not purchasing the inventory until it’s needed. Methods of achieving this include Just in Time (JIT) inventory management, which is also sometimes called the Toyota Production System. Figures suggest thiscould result in a 60 billion saving in plants across Europe.
As a service and commissioning engineer, I’ve often turned up on site to help a customer with a breakdown, onlyto find a host of spares out of their antistatic packaging and a confused client, not knowing whether or not the spares were functional. [Read more…] about The delicate balance of costs versus productivity in industrial automation