5 Steps to Turn Data Into Profits

5 Steps To Turn Data Into Profits

1. Turn the Data into Key Performance Indicators (KPIs)

The first step in the process is to define what should be measured to make the greatest impact for your organization.  These become KPIs to measure and drive results with increased profits. KPIs should be identified for each major operational pillar including Safety, Quality, Yield and Productivity. KPIs can include attributes like OEE (Overall Equipment Effectiveness) efficiencies, yields, availability, downtime, first pass quality, production throughput, incident rates and so many more. It is recommended to identify a minimum of 5 and a maximum of 10 KPIs for each respective pillar. As the old saying goes, you treasure what you measure! We need to make sure we are measuring the right things for maximum impact.

2. Integrate it into a Digital Manufacturing Platform

The next step is to define a process for operational excellence. At BluWave Technologies, we promote this in a system we call POEMSÔ for Performance Operational Excellence Management System. POEMS is based on the 4 pillars of Operational Excellence mentioned in Step 1 but also includes a defined culture that promotes Teamwork, Service, Behaviors and Commitment. In addition, we define three levels to achieve operational excellence. The first level is the foundation of customer and regulatory compliance. The second level is the definition of the performance management system with the KPIs for the four pillars with 5-10 KPIs identified for each. For each KPI established, baseline performance is assessed, and a target goal or control limits are set for monitoring and improvement. Then each KPI is measured on a regular cadence to engage management and employees to drive success. The third level and peak of the structure is the Operational Excellence level that fuels continuous improvements. This is achieved when the first two levels are firmly established and KPI targets are routinely raised to higher, attainable levels. Operational excellence can be an ambiguous term and goal. However, an integrated and quantified approach can turn operational excellence into a reality for any sized company that translates into profits and success.

3. Establish Effective Data Collection Methods

Once you have defined what data and KPIs can make the greatest impact, the next step is to decide how to collect the data. Paper-based systems are so last century and the absolute worst way to collect data. Information on paper cannot be used or managed effectively to optimize operations. In addition, paper-based systems take significant time to collect and report information while being prone to frequent human errors. It is highly recommended to digitize electronic record keeping systems that collect and aggregate data into a centralized database that can be used for reports and analytics. Any type of form can be digitized. BluWave Forms is one software solution available to digitize records. IoT sensors can be used to automatically collect information from equipment. Then, software parameters can be established to assure the accuracy of the information collected. Upper and lower target levels can be set for Statistical Process Control (SPC) capabilities. With this, targets can be defined and exceeded. Digitized records can be collected much faster with greater accuracy and infinite capabilities.

4. Automate Reports and Manage the Results

Once the data is collected in a software system like BluWave Reports or other platforms, it can be reported in a wide variety of ways. The reactive days of the big white board in the production departments with yesterday’s results should be long gone by now. These should be replaced with monitors in production, management and break areas that provide real time results with brilliant data visualization on easy to read KPI performance dashboards. Every employee should be able to instantly see how you are doing and make real time adjustments to correct issues and assure targets are met throughout each day. The other key advantage of BluWave Dashboards solution is the ability to overlay results from multiple production lines or plants to see performance on a single dashboard that facilitates a healthy competition and positive reinforcement. Last, results can be reviewed and managed at regular intervals with trend analysis over defined periods to serve as inputs during management review meetings.

5. Drive Continuous Improvements

Continuous improvement is the peak of operational excellence systems. Operational excellence is achieved when all four pillars of Safety, Quality, Yield and Productivity run consistently on all four cylinders while optimizing performance in a culture that fuels continuous improvement. KPI targets are reset to higher levels when prior ones are consistently achieved. Success is celebrated. Employees and managers are engaged and empowered. Morale is higher. Employees stay longer where they feel involved and appreciated. And in the end, data turns into profits that allow the company to grow, reinvest, reward and retain good people.