Unlocking the Secrets of Machine Efficiency:
How UK Manufacturers are Harnessing Real-Time Monitoring

Current State of Machine Utilisation in UK Manufacturing

Machine utilisation rates in manufacturing have been declining in recent years. According to the UK Manufacturing Productivity Index, the total value of goods produced by manufacturers fell by 0.8% in the first quarter of 2024 compared to the previous year. This indicates that manufacturing output is not keeping pace with previous years.

Overall equipment effectiveness (OEE) is a common metric used to measure machine utilisation. OEE takes into account availability, performance, and quality rate of machines. Studies have found that the average OEE rate for UK manufacturers is only around 60-65%. This suggests that machines are sitting idle or underperforming for 35-40% of scheduled production time.

There are also differences in utilisation rates depending on industry sector. Automotive and electronics manufacturing tend to have higher machine utilisation rates of 75-85%. However, sectors like food and beverage and consumer goods often have OEE rates less than 60% [Machine Metrics Data].

Clearly, there is significant room for improvement when it comes to how efficiently machines are being leveraged in UK factories. Boosting utilisation rates can translate into increased output and competitiveness for manufacturers.

Costs of Low Machine Utilisation

Low machine utilisation leads to increased costs for manufacturers in several ways. With machines sitting idle, manufacturers are not fully leveraging their capital investments in equipment. This unused capacity represents wasted potential revenue. As a Powers Company report notes, "While it might appear logical that lower production volume leads to lower costs, the reality within large-scale manufacturing is more nuanced."

In addition to wasted capacity, low utilisation causes bottlenecks and downtime that further reduce productivity. When some machines are overburdened while others sit idle, manufacturers cannot smoothly flow production through their facility. This imbalance leads to work-in-progress buildup, delays, and disruptions. Downtime alone costs UK manufacturers over £40 billion annually. [Deloitte]

By improving machine utilisation, manufacturers can spread fixed costs over a greater production volume. For example, costs for labour, facilities, and overhead remain relatively constant whether a machine is idle or active. Increased utilisation allows manufacturers to leverage these fixed expenses more efficiently. Poor utilisation means "labour and overhead costs rise." Boosting utilisation is key to reducing unit costs and improving profitability.

Causes of Low Machine Utilisation

Low machine utilisation in manufacturing facilities is often caused by a lack of visibility into equipment performance and inefficient production planning. Common causes include unplanned downtime, changeovers, minor stops, and quality issues that go undetected. Without real-time data on equipment effectiveness, manufacturers struggle to identify and address utilisation barriers.

Unplanned downtime can severely impact utilisation if equipment failures are not quickly detected and resolved. Small stops and slow cycles also chip away at utilisation but are harder to identify without live production monitoring. Excessive planned downtime for changeovers and maintenance can likewise limit available runtime. Ultimately, lack of visibility into all forms of downtime and performance losses makes it challenging to maximise utilisation.

Benefits of Improving Machine Utilisation

Improving machine utilisation provides significant benefits for manufacturers including increased throughput, lower costs, and higher revenue.

Higher machine utilisation means that equipment produces more output over a given time period. This increased throughput allows manufacturers to meet rising demand without investing in additional machines. Running machines for longer periods at maximum output also spreads fixed costs like maintenance and depreciation over a larger volume of production, reducing per unit costs.

With higher throughput and lower per unit costs, manufacturers can increase profits. Each additional unit produced above breakeven contributes directly to the bottom line. In a market with rising demand, higher utilisation allows companies to boost revenues. This creates a multiplier effect where the marginal costs of producing additional output are low, but the marginal revenue from selling these extra units is high.

In summary, increasing machine utilisation leads to greater throughput and lower fixed costs per unit. This translates into higher revenues and profit margins for manufacturers.

Role of Real-Time Machine Monitoring

Real-time machine monitoring provides manufacturers with live visibility into what is happening on the shop floor. By collecting data directly from machines and production lines, real-time monitoring systems can track key metrics like overall equipment effectiveness (OEE), cycle times, downtime causes, and more. This granular, live data enables manufacturers to identify issues as they occur and understand the root causes of production inefficiencies.

Whereas traditional monitoring methods rely on incomplete data or manual tracking, real-time systems like FactoryIQ generate comprehensive insights into machine performance. Dashboards and automated alerts notify production managers when machines encounter problems or experience abnormal downtime. By shining a light on underperforming assets, real-time monitoring enables targeted improvement efforts.

In addition to optimising individual machines, real-time data helps balance workloads across equipment and production lines. Managers gain visibility into bottlenecks and constraints that limit overall utilisation. This system-wide perspective is critical for aligning capacity with demand and smoothing workflow.

Overall, real-time machine monitoring empowers manufacturers to maximise uptime, boost throughput, improve quality, and better utilise existing assets. The granular insights generated by these systems are foundational for driving the continuous improvement needed to reach world-class OEE levels.

Real-Time Monitoring Solutions

Real-time monitoring solutions refer to software systems that enable manufacturers to track production metrics in real time on the factory floor. This is where FactoryIQ comes into play.

- FactoryIQ offers a production monitoring system that tracks OEE, machine utilisation, downtime, and other insights. It connects to machines through plug-and-play non-intrusive sensors that will work on any electrically powered machine regardless of make, model or age.

- FactoryIQ Edge Essentials provides real-time production monitoring as part of its manufacturing platform. It measures machine utilisation, energy consumption, downtime, and more.

The key benefit of real-time monitoring is gaining visibility into production efficiency and issues as they occur. This allows manufacturers to rapidly identify and address problems, ideally before they impact output. Instead of waiting for daily or weekly reports, issues can be detected immediately.

Case Study Demonstrating Results

Real-time machine monitoring has enabled manufacturers to significantly increase utilisation and productivity. Here’s an example from FactoryIQ:

Boneham and Turner Leverages FactoryIQ for Augmented Operational Performance and Production Transparency

Overcoming Barriers to Adoption

Getting organisational buy-in and successfully implementing real-time machine monitoring solutions can seem daunting at first. However, manufacturers can overcome common barriers through education, starting small, and choosing flexible software options.

The biggest barriers often come down to lack of IT infrastructure, cyber physical systems integration, and communication protocols. By starting with a pilot program on a small number of machines, manufacturers can demonstrate the value and ease of real-time monitoring before committing to a large-scale rollout.

Manufacturers should also educate leadership and operators on the benefits of machine monitoring to get buy-in. Operators may view monitoring as threatening at first, but showing how it improves productivity and reduces downtime can alleviate concerns. For additional information check out “Navigating Employee Concerns with Machine Monitoring”. Celebrating quick wins from initial pilots builds further support. With persistence and flexibility, manufacturers can implement solutions that deliver the full value of real-time machine insights.

Key Takeaways

In summary, low machine utilisation is a common and costly issue for UK manufacturers. In implementing real-time monitoring systems, manufacturers can gain valuable insights into machine performance and quickly identify areas for improvement. The benefits are clear - from increased throughput and lower costs to reduced downtime and better asset utilisation.

As we've discussed, real-time monitoring provides the data needed to optimise processes and make informed decisions. With the ability to track OEE and other key metrics in real-time, issues can be identified and addressed rapidly. Case studies show the power of this approach, with manufacturers achieving 10-20%+ OEE improvements.

The time for action is now. FactoryIQ monitoring solutions are affordable, quick to implement, and deliver a fast ROI. With FactoryIQ’s intuitive interface overcoming organisational resistance to new technology in a breeze, and the long-term benefits far outweigh any temporary growing pains. Adopting these systems can transform manufacturing operations, taking them to new levels of efficiency and profitability.

The choice is yours - either continue running inefficiently and losing money, or leverage FactoryIQ real-time monitoring solutions to maximise your assets. Don't let this opportunity pass you by.