Situation
A manufacturing company frequently incorporates longer lead-time jobs into their production schedule by completing them in smaller batches as time permits. This approach is initially seen as flexible, allowing the company to utilise downtime effectively. However, it leads to increased tooling time, higher incidence of errors due to frequent setup changes, and inconsistencies in batch quality.
These hidden costs are not immediately apparent, and the company lacks comprehensive data to evaluate the financial impact of this practice.
Action
Detailed Data Collection
DataQI Insights integrates data across all production processes. This includes capturing information on machine setup times, error rates, and quality control checks for each batch of the longer lead-time products.
Performance Metrics Analysis
DataQI Insights analyses performance metrics from these smaller batches versus larger, consolidated production runs. Key metrics include production downtime, error rates by batch, and average setup times. DataQI Insights also assesses quality control records to identify any variations in product quality that arise from batch inconsistencies.
Strategic Reporting and Recommendations
The platform generates reports that highlight the cost inefficiencies and quality issues associated with the current flexible scheduling strategy. These reports recommend optimal batch sizes and scheduling strategies that align better with cost minimisation and quality maximisation principles.
Result
Increased Cost Transparency
The company gains clear visibility into the true costs of fitting longer lead-time jobs in smaller batches, including previously overlooked aspects such as increased setup times and higher error rates.
Reduced Production Costs
By understanding the financial impact, the company restructures its production schedule to favour fewer, larger batches for long lead-time jobs, significantly reducing setup times and machine wear and tear.
Improved Product Quality
Consolidating batch sizes decreases variability in product quality, which in turn reduces rework rates and increases customer satisfaction.
Enhanced Planning Efficiency
With better insights into cost drivers and quality metrics, the production planning team optimises the manufacturing schedule, balancing flexibility with cost-effectiveness and quality assurance.