Transforming manufacturing operations to boost production and reduce overtime

Within a span of just four months, Shoplogix played a pivotal role in helping a global supplier of automotive technology accomplish a 5% increase in its production ratio. Other achievements included a 64% reduction in overtime hours, overtime savings of more than $75,000, as well as $100,400 in labor savings. Here’s how this was accomplished through #smartfactory technology.

Overcoming the main challenges

One of the main challenges faced by the company was data accuracy. Manual tracking and reporting processes were both inefficient and prone to errors, leading to poor performance across the manufacturing plant. Meanwhile, another challenge was the lack of real-time employee engagement and communication. This led to costly miscommunications and reduced productivity. Additionally, inaccurate cycle time data compromised visibility on the plant floor, resulting in missed opportunities to address issues promptly.

• Manual tracking and reporting

• Lack of real-time engagement

• Missed opportunities

The Shoplogix solution

Shoplogix provided real-time visibility, continuous improvement, resource prioritization, and IoT connectivity solutions to target these challenges. Since real-time visibility allowed for automated data collection, this gave employees information about performance metrics while fostering a collaborative environment. Next, employees were engaged through continuous improvement efforts championed through accessible visual displays.

As for resource prioritization, the real-time data helped employees solve issues related to production ratios, downtimes, scrap and cycle times. Additionally, seamless IoT connectivity gave these employees a true representation of key efficiency metrics.

• Real-time visibility

• Continuous improvement

• Resource prioritization

• IoT connectivity

By implementing these measures, the company achieved a significant 64% reduction in overtime hours, resulting in savings exceeding $77,000 that was previously spent on additional labor costs to compensate for safety stock recovery.

Shoplogix also helped the company reduce cycle time by 10%, specifically targeting labor costs. For example, cycle time on the HVAC molding line was minimized to about 3.5 seconds. As a result, the company was able to achieve further cost reductions in labor that exceeded $100,000 annually since fewer employers were needed to produce the same quantity of products.

Moreover, the HVAC molding line operated at significantly higher levels of efficiency. In a span of a few months, the company achieved a 5% increase in the production ratio, showcasing the positive impact of Shoplogix’s effect on overall performance and productivity.

Ready to turn your factory into a smart factory? Get started today by visiting https://shoplogix.com/. 

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