Reduce Lead Time in Make-to-Order Production using RTLS
Convenience, responsiveness, and personalization are nowadays the three key attributes of customer expectations. Customers want tailor-made, custom-built products in the shortest time possible. A company that can meet these expectations wins with customer experience, creates company advocates and increases customer retention. For a manufacturer, to meet this increased customer expectations, the the make-to-order (MTO) production approach must be adopted. However, it also comes with strict performance objectives. If you identify with any of the following, read on:
• Is your production’s efficiency affected by HUMAN ERRORS?
• Are you missing REAL-TIME DATA on the production process?
• Could you benefit from lowering the MANPOWER COSTS?
• Is managing your audits TIME-CONSUMING?
MTO vs MTO using Digital Work Orders
Make-to-order (MTO) Production Objectives
|Short lead time: Customized orders must be quickly satisfied requiring the shortest lead time possible and precise synchronization between processes to avoid loss of sales.|
|Real-time delivery: Delivery on-time needed as each step is dependent on the previous and no gaps are permissible as inventory safety is absent.|
|Quality control: Increased quality control as each defect comes at a high cost with small batches and non-inventory items.|
|Costs: Decreasing the costs by reducing the wasteful activities.|
|Audits: Shortening audit times while increasing available details, including GMP audits.|
Benefits of MTO with RTLS
|Shortened lead time – the overall lead time is shortened thanks to the absence of waste and gaps in production.|
|Elimination of wasteful activities – employees no longer spend time searching for components.|
|Gain full real-time visibility of processes – management can achieve greater control by being notified immediately if the flow is not following the momentum. Improved transparency across all departments and facilities.|
|Streamlined audits – full real-time traceability of assets which minimizes additional queries in both customer and legal audits.|
|Increased quality of products – real-time location makes it easier and quicker to find defective parts and prevent them from reaching the next step in production.|
|Streamlining production process – gaps in consequent operations are eliminated.|
|The ability for continuous improvement (Kaizen) – having real-time and correct data management can continuously optimize processes.|
Real-life Case Study of Improving MTO
The following results were obtained using Sewio RTLS for improving the make-to-order process in Siemens Industrial Turbomachinery to reduce the time needed to search among 2,000 components within an 18,000 m2 hall. Please see the full case study on Siemens.
20% reduced wastage of unproductive time
The ability to immediately locate the components needed for production eliminated non-productive time wasting and shortened the overall lead time by 20%.
66% shorter average searching time
The actual time for searching, nicknamed within the company “mushrooming”, went down from an average 45 minutes to 15 minutes – a 66% drop.
Streamlined and faster audits
The customer auditing process has also been streamlined as auditors have a quick and easy way to access details about the production and its processes.
Higher visibility gained and an increased ability to plan
As the managers planning the production now know where all of the needed components are located, they can also better plan the operation and estimate the timeneeded to finish the operation, thus, improving the effectivity of the planning.
Higher quality of production
If a part is identified as defective, it is quick and easy to find it, preventing it reaching the next step in production and resulting in a higher quality of products.
Benefits of Using Sewio RTLS
30 cm accuracy that allows the full flexibility and variability of virtual zones without any changes of infrastructures.
Unlike RFID and Bluetooth, Sewio’s UWB-based technology works with higher precision and reliably in harsh metallic and variable
The ability to scale the system easily and quickly to track more objects and expand the system to more halls.
Open and well-documented API.
Short deployment time.
Have any questions?
“The used Sewio RTLS brought the accuracy needed, reliability with low maintenance costs and easy scalability for future location-based projects. Thanks to the outcome of the project, we have become a leader in digital innovation for other PG divisions of Siemens.”
Production Systems Manager at Siemens Industrial Turbomachinery