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Activplant's Throughput Analyzer gives plant managers a clear path to dramatic increases in productivity
By interpreting proven manufacturing theories in a new way, the Throughput Analyzer automates the identification of true constraints and – most importantly – gives you the means to use this data to make significant improvements in plant performance.
As a pre-configured, pre-validated solution, Throughput Analyzer is designed for efficient roll-out and rapid ROI. This solution greatly reduces risk and speeds time-to-results over custom-built tools. Plus it has been developed for repeatable and consistent roll out for multi-plant enterprises.
Activplant customers have experienced increases in throughput of 10% to 25%
Dchieving optimal manufacturing performance sounds relatively uncomplicated: plant management and operators must simply improve actual production rates and quality of output to meet production targets. But sorting through the complexity of data that explains the gap between reality and the goal can be anything but simple.
As the first ActivApplication in the Activplant Performance Management System (APMS), the Throughput Analyzer is the solution to improving manufacturing productivity through a focus on constraints. By identifying and prioritizing your true constraints, it empowers plant personnel to attack the issues that will result in the largest gains in throughput – and enables management to make informed decisions that will positively impact the bottom line.
Defining True Constraints
Constraints come in varying degrees. By prioritizing the constraints which – when eliminated or reduced – will provide the greatest return on productivity, Activplant's Throughput Analyzer clearly identifies your true and chronic constraints. And just as importantly, it gives you the tools to correct them.
Conversely, the elimination of a non-constraint – any low-priority issue which is not affecting actual throughput – does not result in quantifiable gains.
What is the Cost of a True Constraint?
Because correcting them will positively impact throughput, identifying true constraints is crucial to improving manufacturing performance.
Consider this – your operating costs are the same, regardless of fluctuations in throughput (and therefore your profits). So every hour of production lost due to a true constraint is equal to the cost of an hour of running the entire plant. And every hour gained is a true contribution to your bottom line.
The Value of improving production throughput
The value of improving production throughput is astounding. For example, in a plant with 100 employees, a 5% improvement in production efficiency equals 2,100 minutes in recovered labor over the entire plant or a savings of $437,500 a year. And that’s just one of your facilities. Applying the same logic over the entire enterprise unlocks an unimaginable amount of lost time. Imagine multiple facilities totaling 20,000 employees. By recovering that 5% or 21 minutes per shift, you would realize a recovered labor total of 420,000 minutes per shift or a savings of $87,500,000 a year. Now, the question is where to invest this new found productivity.
- Labor Reduction?
- Cap-ex Reduction?
- More CI Projects?
- Overtime Cost Reduction?
- Increased Revenue (Product Launch)?
- Improved Quality (In-line Quality Projects)?
Striving for the ideal, applying proven theory
Activplant starts with an ideal vision of the manufacturing enterprise: plants running one-piece flow at takt time for 100% throughput and ultimate productivity. To bring that vision as close to reality as possible, we apply established theories as well as advanced technology and years of relevant experience.
First, when associated with manufacturing, the Theory of Constraints (The Goldratt Institute) suggests that the throughput of an assembly process is constrained by its slowest asset. The challenge, then, is to isolate that constraint.
To do it, Activplant also applies the lean tenets of the Toyota Production System (TPS), including the measurement of every asset in the operation against one-piece flow to takt time.
The result is the identification of constraints through our patented Throughput Capability Metric. The movement of every material through each asset in the plant is automatically tracked and processed by the Activplant logic engine to reveal the true and chronic constraints of the operation.
With this powerful information, the Throughput Analyzer provides a clear indication of your plant processes and a new way to analyze and improve throughput.
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