by Steve Adams, CEO at LineView
In the intricate and fast-paced world of modern industry, the concept of equipment effectiveness is a linchpin of operational success. Yet, the question that often looms large is how this seemingly technical measure translates into tangible business impact.
The answer, it turns out, is a tale of two perspectives: that of the shopfloor, where uptime reigns supreme, and that of the c-suite, where the bottom line and ESG (Environmental, Social, and Governance) targets hold sway. While these two viewpoints might initially seem disparate, the notion permeates every layer of an organisation, making it imperative to bridge the gap in understanding what talks to both the shopfloor and the boardroom.
Enter LineView, a company that not only recognises the pivotal role of measuring a broad range of key performance indicators (KPIs), including overall equipment effectiveness, but also comprehends its potential when scaled effectively. Crucially, it understands that to engage its customers, which often comprise the entire buying committee, it must convey this importance in a manner that resonates with each stakeholder’s unique priorities. The strategy is clear: show, don’t just tell.
LineView’s software has demonstrated its ability to deliver an average 10% improvement in Overall Equipment Effectiveness (OEE). Yet, what does this seemingly modest percentage truly signify? The heart of the matter lies in translating this technical achievement into language that speaks to both operational leaders on the factory floor and decision-makers in the boardroom.
Efficiency begins on the shopfloor
First, we must get to the crux of the problem. Efficiency serves as the cornerstone of any thriving enterprise, particularly within food and beverage packaging. What is causing inefficiency? Machine downtime, inadequate maintenance, changeovers, quality control, human error, waste, the list has the potential to be endless, and much of it stems from the shopfloor.
But all is not lost. Software has served as the key to bolstering OEE for major food and beverage companies, such as Coca Cola, PepsiCo and Britvic. OEE is a metric that transcends the technicalities of production and carries significant implications for the bottom line. It’s important to point out that OEE might not be the correct measurement or KPI for every business or every line. That being said, creating efficiencies in OEE can result in improvements across the production and packaging line while helping to optimise existing assets without the need to acquire expensive new production lines to meet demand – allowing companies to redirect CAPEX to other areas of their business.
How do we calculate OEE? Measuring or calculating OEE is only possible through real-time monitoring of availability, performance, and quality across production lines. Software solutions can capture unplanned downtime, for example, by allowing manufacturers to swiftly detect and address inefficiencies and maintenance issues, leading to increased equipment utilisation and minimised production interruptions.
The performance metric optimises machine efficiency, while the quality metric ensures adherence to stringent quality standards. The result is a substantial improvement in OEE, directly translating into higher output – and, when margins are low, this can result in drastic improvements to overall profitability.
LineView understands the importance of efficiency and offers innovative solutions tailored to streamline operations. By implementing LineView’s solution, companies can gain real-time insights into their production processes, identify bottlenecks, and optimise workflows. This leads to productivity, reduced production costs, and faster time-to-market. These outcomes are nothing short of essential in the whirlwind world of food and beverage packaging, where speed and precision is critical to maximise output.
The boardroom; where sustainability and profitability matter
Increasing output, reducing production costs, making additional CAPEX available, and ultimately making more money is a language that the boardroom speaks. Sustainability has become not just a buzzword but a moral and operational imperative and ESG considerations loom large in the corporate world. So, it’s important that when considering improvements to operations, that the broader business impact is at the forefront of those discussions, to translate the “on the shopfloor benefits” to the boardroom.
By adopting software that essentially removes the burden of thought, and improves OEE and other KPIs across lines, manufacturers can tap into a goldmine of data. Data, which can facilitate transparent reporting on sustainability initiatives.
Software, like LineView’s, empowers companies to monitor and reduce energy consumption, optimise resource and water utilisation, and minimise waste. This approach extends to the identification of areas for improvement and the implementation of sustainable practices, culminating in a reduction on environmental impact. This dual achievement of operational efficiency and environmental responsibility paints a compelling picture for the shopfloor and the boardroom alike.
But, LineView isn’t merely about short-term gains; it equips businesses with the tools needed for long-term sustainability and profitability. By seamlessly integrating efficiency and sustainability into their operations, food and beverage packaging operators can reduce costs, minimise risk, and ensure their businesses thrive in a constantly evolving marketplace.
In a world where boardroom decisions impact the shopfloor, it is vital that businesses ensure clear visibility of the efficiency, profitability, and sustainability of its lines. Enabled by technology, in which LineView proves itself to be a catalyst for transformative change, this holistic approach not only drives operational excellence but also allows companies to elevate their competitive edge by aligning business goals with broader societal and ecological imperatives.
