Digital ID as a possible way to cut off Idle Time in lean manufacturing
Implying Digital ID with other technologies, a company can actively manage all the manufacturing phases and take advantage of new business opportunities.
A successful organization will place their customer at the centre of the value-driving relationships anticipating and acting on customer needs. As the evolution of every field in daily life, it’s no longer the story of which product company wants to produce. It’s about an organization having to deliver personalized products to meet individual customer demand by transforming the design and manufacturing process. In the meantime, manufacturers must confirm that distribution partners have delivered finished products on time. Digital ID, among the rise of emerging technology applications, is becoming an effective way for organizations to manage the manufacturing process, especially cutting idle time in lean manufacturing.
Idle Time in lean manufacturing
What is Idle Time?
Idle Time — or waiting time, allowed time, or downtime — is the non-productive time of a part of an employee or machine due to management or factors beyond their control. Idle time involves employees waiting for the company (while the company still has to pay for them) to have a job to do or a machine part that is operable but not being used in production.
This a detrimental factor for the company’s profits and lead to the decline of overall productivity, especially in enterprises with high fixed costs like manufacturing.
Why does it happen?
There are many reasons (including both normal and abnormal ones) that lead to Idle time, such as:
- Normal reasons (included in manufacturing cycles): worker’s break time, time to fix or maintain machines
- Abnormal reasons (which are non-planned, difficult to predict and control): Ineffective management in workflow due to lack of latest needed information; human errors; waiting for materials; change in customer need…
In this article, we will focus on dealing with abnormal reasons, which heavily affects the companies but it could be avoided and controlled if appropriate precautions are implemented.
How to cut off Idle Time in lean manufacturing with blockchain-based digital ID
More and more technologies are applied to help companies to implement a dynamic workflow, not to mention blockchain-based digital ID. The solution to how a decentralized ID contributes its business value to a manufacturing company is transparency and traceability. The point is to get data for performance evaluation and to monitor scheduling fluently.
- Produce appropriate products: Studying your customer need is the very first step you need to do before really producing a product. Decentralized ID gives manufacturers more valuable customer information so that they can develop a suitable product to meet customer needs.
- Ensure the supply of quality materials: seeking for a reliable supplier is no longer a tough challenge when all information is unchangeably stored and available in a decentralized database.
- Immediately handle non-standard products: combine with IoT, the precise product status information will be recorded in a decentralized database. Once a non-standard product is tracked, it first will be removed from the main production line to re-evaluate whether it should be fixed and re-produced or eliminated. Meanwhile, information about the quantity of added assets will be automatically recalculated and informed to other vendors in the network, ensuring the JIT system.
- Reduce human errors: Human errors caused by low attention, limited memory, situation awareness, stress, fatigue or simply random errors when they record information can be reduced and accelerated by an automatic system.
- Save costs: Reduce errors and non-standards products lead to reduce in communication costs (connect to vendors, handle issues related to reputation), Overtime cost, Transportation costs, Cost of storage/ destruction of goods
Time is money. Bad idle-time management could result in a huge of consequences such as reducing ROI because of high costs, undone orders, and failure in gaining customer trust,… To avoid that fate, leaders should consider thoroughly all the factors and start to apply automatic technologies in their production process.
In order to do that, leaders must understand how digital tools are used widely and effectively so that they can create for themselves an environment with optimal conditions. This assessment should consider: Applicability, Capability, Business risk.
Built on Hyperledger, akaChain offers scalable, secure and customizable blockchain solutions for enterprises to bring in life transparency and traceability which affects more and more to the “survival” of a business.
Contact us for more information:
Phone: +84 962 516 915