What Should a Dashboard Contain to Monitor Overproduction?
For all manufacturers who produce fixed-weight items - sausages, chocolates, cookies, pet food, potting soil and cheeses to name a few - tight control of giveaways is crucial.
Beyond the Losses of Raw Materials
While it goes without saying that a rigorous control of giveaway makes it possible to reduce the loss of raw materials, we sometimes forget all the other costs associated with systematic overruns of fixed weight products on a production line.
Imagine a baker who packages cookies where the final fixed weight package is exceeded by an average of 4%. If the cookies have to weight 100g to respect the weight indicated on the packaging and the production line is adjusted so that all the cookie packages coming out of the line weigh 104g, then it is clear that with each package of wrapped cookies, the giveaway is 4g. By adding the 4g of the thousands of units produced per hour, we are left with many cookies for which we will not be paid. The manufacturer is giving a lot of grams away.
Let's push this even further. With all of the excess 4 grams combined and lost, we must add the lost capacity (4%) and the costs associated with the time the workforce spent to produce this surplus at non-value added (4%).
When the giveaway is out of control, the manufacturer is losing on all fronts.
As everything that you measure improves, it will be possible to reduce the giveaway. Usually, production managers in factories will measure the weight of raw material at the input and the total weight of the finished product at the output. They will then make a summary of the week and will have an idea of their performance but it's too late to make changes. Imagine if they had access to this information in real-time and could act quickly to correct the fit of equipment or the way the workers operate to reduce giveaway at the source.
By connecting the scales and checkweigher or by accessing the database in which data from these devices are stored, it is possible to obtain exact values for each item in real-time. These values, combined by algorithms, give a precise picture of the quantities (in KG) of excess product and the overall rate of overproduction (%). Managers can then set alerts that warn them when fixed weights exceed the standard established by the company and can direct the energies of their team to quickly correct the situation.
Dashboard for Reduced Giveaway
To better control giveaway, it is essential to have the data in real-time and to be able to visualize it in a dashboard that gives an overview of all the key data combined. Several software and applications exist to visualize key performance indicators of a plant. Some software allows manufacturers to broadcast on screens installed directly in the plant some of the key performance indicators. Doing so also makes it more likely to engage teams in achievement objectives.
What would be the key performance indicators to keep an eye on for reducing giveaway?
- The percentage of giveaway of the product
- The target giveaway percentage, set by the management team
- The total weight of overproduction for the product being manufactured
- Evolution over time of the rate and quantity of product given away
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