C-Level Executives Sustain Manufacturing by Reducing Labor Costs According to Memex Automation CEO David McPhail
Burlington, Ontario -- (SBWIRE) -- 07/22/2010 -- When manufacturers benchmark by real-time accurate measurement, the current level of productivity using OEE as the metric, provides an accurate picture of the true efficiency of manufacturing operation(s). Analysis of the data collected allows a company to continuously improve problem areas quickly, which leads to increased productivity in the near and long term.
According to David McPhail, President and CEO of Memex Automation, “Modern manufacturing equipment costs the same (in equivalent currencies) across all manufacturing jurisdictions (North America, Europe, China, India, etc.). Raw materials are priced as commodities in a common currency (usually USD). It is the cost of labor that varies widely between manufacturing zones. The true cost of labor contains all the usual overhead costs that manufacturers are required to pay (taxes, health care costs, insurance, burdens, etc), and is not necessarily limited to what the employee is paid on an hourly basis. These "grey" costs also vary widely between developed and developing manufacturing zones.”
McPhail notes, “When productivity increases, unit labor cost decreases, which in turn reduces the cost of products manufactured in high labor rate based economies such as North America. This leads to increased bottom line profitability, a tremendous competitive advantage, and sustainable operations for the long term.”
The formula to sustain manufacturing into the future, and a C level executive's value proposition is therefore;
Real-time OEE measurement + Analysis and Continuous Improvement = Increased bottom line profitability and sustained operations.
- OEE (Overall Equipment Effectives) can monitor ANY MACHINE in real-time; reporting on cycle time, parts produced, reject analysis, labor tracking and more, all to reduce downtime and improve efficiency for any and all machines.
- DNC can control machines and load programs fast, with special features, all increasing efficiency.
- Component hardware (Memory, Connectivity, File Servers, BTR) make machines perform faster.
Immediate Visibility of production status and comprehensive data collection is vital for a competitive advantage. Rattray insists, “Memex Automation understands the need to be more competitive - by automating the information flow companies can manage productivity.”
While many systems say they automate shop floor data collection Memex Automation does it automatically and directly in real-time. Operator Bar code scanning of work order status and keying in part counts, reject counts, reject classifications, down time reason codes all are inefficient and prone to error.
Memex Automation has a Universal Machine Interface that automatically tracks this information - freeing up the operator to manage the machine. This information is then automatically disseminated from the Shop Floor to the Top Floor for visibility, management, accountability, historical auditability and available for time study analysis.
About Memex Automation Inc.
Memex Automation Inc., http://www.Memex Automation.ca, a unit of Astrix Networks Inc., was created to leverage the research and development of Memex Automation Electronics, which was founded in 1992 and based in Burlington, Ontario. Memex Automation continues its tradition of serving the discrete manufacturing sector, supplying component hardware, memory upgrades, and visionary shop floor communication technology. Memex Automation products allow a manufacturer to “Automate the Automation” to increase productivity and decrease costs. Memex Automation focuses on delivering value with Real-Time Machine Monitoring and Control, which utilizes OEE+DNC solutions that boost efficiency by up to twenty percent with minimal capital investment.