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Optimizing efficiency and reducing expenses with standards, process controls, and AI

11.11.2024 | Operational Excellence | 0 comments

KEY TAKEAWAYS
  • Standards and process controls, as components of a successful OPEX program, enable the systematic identification of inefficiencies and long-term cost reduction.
  • By securing knowledge and standardizing workflows, higher productivity and product quality are achieved.
    Variations in production, such as performance differences between shifts, can be specifically reduced.
  • The integration of Artificial Intelligence supports process monitoring and maintenance by analyzing patterns, which can minimize production downtime and material losses, while uncovering additional efficiency potentials.

In times of high energy costs, geopolitical uncertainties, and constant market changes, many companies face significant cost pressure. Often, the potential for savings that can be achieved through the implementation of standards and process controls is overlooked. Particularly in production, but also in administration, insufficient standards and the lack of process controls can lead to a long-term unstructured way of working, reduced efficiency, and quality losses. This directly impacts costs.

Standards and process controls in the OPEX approach

Standards and process controls are key tools in Operational Excellence (OPEX). The primary goal of this approach is to identify, minimize, and, where possible, eliminate waste, losses, and inefficiencies across the entire organizational structure and workflow. At the same time, it aims to create a working environment that allows employees to continuously improve. Integrated into the OPEX approach, standards and process controls play a crucial role in enhancing efficiency and reducing costs. Through the ongoing application and adjustment of these methods, the organization evolves, ultimately leading to greater resilience and security, even in future crises.

Read in our OPEX whitepaper how a comprehensive OPEX program is structured. Learn more about success factors, targeted implementation, and which building blocks are essential for transforming your organization.

METHODS OF STANDARDIZATION AND PROCESS CONTROL

Prozesskontrolle<br />
Standardisierung

Objective of Standards and Process controls

Knowledge retention and efficiency enhancement

By implementing standards and process controls, companies can safeguard their knowledge and significantly improve the efficiency of their workflows. When knowledge is stored in documented and standardized processes, the loss of this knowledge due to turnover is minimized. New employees can be onboarded more quickly and effectively because clear instructions and documentation are available. Combined with trained instructors, this facilitates the efficient utilization of potential. Training Within Industry is one method for trainers to effectively and precisely teach standards.

Avoiding wastage & losses

Standardized processes minimize errors and rework, resulting in higher product quality and lower production costs. Clearly defined workflows reduce the likelihood of deviations and ensure that products and services are consistently delivered at a high level. This not only leads to cost savings but also enhances customer satisfaction and loyalty.
A simple practical example from production:  
A production site operates on a 4-shift system. The output of the shifts varies significantly, primarily because individual top performers make the difference. Their extensive experience and advanced working methods enable them to achieve higher output and quickly resolve problems.

Homogenizing performance across shifts

To address the performance disparities between shifts, the knowledge and best practices of high-performing individuals are documented in the first step and incorporated into the work standard—such as in a Standard Operating Sheet (SOP). This documentation can then be used as the training and education foundation for all shifts, allowing the knowledge to be shared and the new standard to be implemented. To ensure the sustainable application of these standards, an excellent qualification system is essential. In this way, standards and process controls can prevent unforeseen losses.

The standardization of the best work methods and the consistent training of these practices minimize performance differences across shifts and enhance your flexibility.

Success  factors in the implementation of standards and process controls

The following table outlines the key success factors and explains them using an example:
Standardisierung<br />
Qualifizierung<br />
Prozesskontrolle<br />
Prozessbestätigung

To successfully implement and sustainably secure standards, all four success factors are needed. We often observe that companies do not consistently follow through with process control and confirmation.

Often, there is simply not enough time to keep the standards alive over the long term. It is crucial to make process controls as simple as possible through visual management and excellent shopfloor management, so that leaders do not lose time during process confirmation. Additional success factors include:

Involvement of operational leaders
Employees who work directly in the process must be actively involved. They know the details and challenges of their workflows and provide valuable insights and suggestions for improvement.

Pilot areas for testing and learning
Start in small, manageable areas, such as using the 5S method at individual workstations. These pilot projects help gather experiences and refine the approach before expanding it to the entire company. Begin with focus areas where a noticeable improvement for the workforce can be achieved. Quick, visible successes are key to the change process.

Consistency in application
Standards and process controls must be consistently applied, even during periods of high workload. Creating documentation or visualizations, as well as maintaining the continuity of training, should not be neglected, even when it seems to be of lower priority at times.

Learn more about the systematic approach of Operational Excellence, what to consider during implementation, and how you can successfully improve your efficiency and reduce costs.

Integration of Artificial Intelligence in standards and process controls

The integration of Artificial Intelligence (AI) offers additional potential to further optimize standards and process controls:

Process Monitoring and Optimization
Through real-time analysis of patterns in production data, AI can identify inefficiencies and provide suggestions for process optimization. These analyses are based on large datasets that would be difficult to manage manually. AI can perform statistical tasks and correlations, such as correlation analysis. By detecting patterns and trends that indicate possible improvements, AI can help identify opportunities for continuous efficiency gains early on.

Predictive Maintenance
In the area of predictive maintenance, AI enables the prediction of maintenance needs, helping to avoid unplanned downtime and extend the lifespan of machinery. Statistical tasks, such as correlation analysis with pattern recognition, can be carried out here as well. By using precise sensors and analyzing the collected data, AI can detect potential issues early and recommend preventive actions. This results in higher machine availability and reduces maintenance costs.

Conclusion

The implementation of standards and process controls within the framework of Operational Excellence offers companies significant potential for improving efficiency and reducing costs. By integrating AI, these effects can be further enhanced, fostering a more sustainable and resilient organizational structure.

Our whitepaper explores the key elements of a comprehensive transformation toward Operational Excellence.

FAQ
How can consistent adherence to standards be ensured?
Ensuring the consistent adherence to standards requires clear communication, regular training, and continuous process monitoring. Leaders play a central role by modeling the standards and reinforcing them through shopfloor and visual management practices. Additionally, involving employees in the development and improvement of standards promotes stronger acceptance and long-term implementation.
How can performance differences between shifts be reduced?
Performance differences between shifts can be minimized by documenting the best possible working methods and establishing them as standards for all shifts. Targeted training and onboarding based on these standards, such as through the Training Within Industry method, enable employees to perform uniform workflows. Regular training, process monitoring, and feedback sessions ensure consistent performance across all shifts and maintain efficiency.
How does the integration of AI support process control?
AI can monitor processes in real-time, detect patterns in production data, and provide optimization suggestions. In areas like predictive maintenance, AI can identify maintenance needs early, preventing unplanned downtimes. This correlation-based support enables continuous process improvements and achieves additional cost savings.