I recently heard a story about “unlinked coils”. These are coils that are produced but that are not assigned to a production order in the ERP. This means the are not assigned to a sales order either. As a result they just lie around until someone notices them after half a year or a year. Usually they are either scrapped or sold at a low price, resulting in a five-digit financial loss.

Production is top priority. In order to keep OEE high, the Operations team is going to always produce - no matter what’s in the ERP.

Here’s the thing…

In Digital Transformation or Industry 4.0 we keep talking about AI and Digital Twins. However, I believe a substantial benefit can already be gained by picking low hanging fruit, such as having complete insight into what’s going on on the shop floor. This doesn’t require advanced analytics - just a mature approach to data management.