1. Customer Summary Card
Chengdu Baishite Tool Co., Ltd. was established on October 17, 2019, and is a wholly-owned subsidiary of Chengdu Baishite Diamond Drill Bit Co., Ltd. It is a nationally recognized "high-tech enterprise" and was selected as a national-level specialized and innovative "little giant" enterprise in 2020, designated by the Chengdu High-tech Zone as a strategically supportive enterprise for promoting "three times of entrepreneurship" and an "high-end equipment manufacturing" enterprise.
Baishite is a multinational enterprise with both domestic and international operations. The company has factories in Houston, USA, and Dammam, Saudi Arabia, and has branches in the Middle East, Russia, and the USA, with several offices in major large oil fields overseas. Currently, it owns the most complete CNC machining center production line in the industry, achieving fully intelligent and digitalized production, with an annual output of over 8,000 various drill bits.
In 2018, Baishite signed a cooperation agreement with Schlumberger, the world's largest oil service company, whereby Schlumberger transferred its globally leading Dyna-Drill high-performance drill tool production line to Baishite. Following this, Chengdu Baishite Tool Co., Ltd. was established specifically to manufacture Dyna-Drill high-performance drill tools and other special drilling tools.
Personnel Scale: About 300 people
Production Value: About 600 million
Industry Position: A domestic technology leader and a producer and service provider of drill bits and drilling tools with strong influence internationally, being the largest provider of diamond drill bit drilling technology services for oil exploration in Asia.
Main Products: Drill rods, hydraulic expansion tools
Application Industries: Oil and natural gas extraction
Main Markets: Middle East, Russia, USA, and domestic
Downstream Customers: Baishite Diamond Drill Bit Co., Ltd.
Production Process: Machining/glue injection vulcanization/assembly
2. Project Background Introduction
Industry Characteristics
Baishite is in the oil and natural gas extraction tool manufacturing industry, a technology-intensive field, where products need to operate stably in extreme underground mining environments like high temperature, high pressure, and high corrosion. Thus, there are very high demands for product quality and reliability. Moreover, oil and gas extraction projects have a high degree of continuity, and any delay or quality issue with drilling tools could lead to work stoppages, resulting in massive economic losses and potential safety hazards, making the timeliness of delivery critically important.
As a multinational enterprise with both domestic and overseas operations, Baishite works closely with large global oil service companies and must adhere to internationally high standards of quality and respond to complex and changing order demands. Its flagship products, drill rods and hydraulic expansion tools, involve complex and intricate processes covering machining, glue injection vulcanization, assembly, etc. Each link is closely interconnected, requiring high precision, stability, and coordination in the production process to ensure the products play a key role in oil and gas extraction operations.
🤔 Risks
Customer Loss: If focusing solely on product supply, it may not meet the growing rental and after-sales needs of customers. In the face of complex and changing extraction projects, customers may likely turn to competitors that can provide comprehensive service. For example, if tools malfunction at the extraction site, if Baishite cannot respond promptly for repairs, customers will inevitably choose other suppliers with better service to maintain project progress, leading to a gradual loss of customer resources.
Market Share Shrinkage: There is intense competition with product homogeneity, and relying solely on product performance is insufficient to stand out. Competitors are expanding their service boundaries, and if Baishite remains stagnant, its unique selling points will continue to diminish. As new companies impact the market with innovative service models, the existing market share will gradually be eroded, tightening survival space.
Profit Growth Constraints: On one hand, fluctuations in raw material prices and rising production costs squeeze product profit margins; on the other hand, missing out on new profit channels such as rentals and after-sales results in sluggish revenue growth and long-term developmental constraints, making it difficult to cope with financial pressures brought about by market changes.
Decreased Industry Adaptability Risk: The industry is moving towards service-oriented manufacturing and places increasing emphasis on the integration of technology and services, such as the digital operation and maintenance of equipment. If it does not transform, Baishite will become disconnected from industry trends, lagging in technology Application and service innovation, losing market voice, and eventually becoming marginalized.
💪 Transformation Decision
Given the severe situation and potential risks in the industry, Baishite has resolutely decided to transition from a **product-oriented to a service-oriented** manufacturing industry. The aim is to deeply embed rental and after-sales services based on quality products in the next 3-5 years, comprehensively align with customer needs, increase customer satisfaction and loyalty, reshape the competitive advantage of the enterprise, broaden profit channels, and achieve sustainable development.
🚀 Introduction of MES
The traditional management model has numerous problems, planning and material processes lack MRP operation, communication is chaotic, and daily accounts are unclear, leading to invalid production plans; production plans and progress management rely on manual work, which is inefficient and difficult to track; management modules such as tools and equipment, parts and traceability, standard working hours and performance, engineering changes and BOM are all fraught with issues.
To break the information silos, achieve production visualization, transparency, and intelligence, Baishite is determined to introduce the MES system, accurately optimize business processes, and collaborate efficiently among all links to lay a solid foundation for transformation.
3. Current Situation and Challenges
Current Situation of Customer Business and Its Impact
Planning and Material Management
Current Situation: Baishite has not been able to effectively run material requirements planning (MRP) in the U9 system, with the engineering manager doubling as the PMC position, sales demands conveyed sporadically via phone and WeChat, and no daily accounts being settled.
Impact: Unable to accurately formulate production plans, prone to material backlog or shortages, increasing inventory costs and capital occupation costs, affecting delivery times, ultimately leading to breach of contract risks.
Production Planning and Progress Management
Current Situation: Relies on manual tables to arrange production plans and record progress, manually inputting data after onsite supervision, and tracking ongoing production relies solely on process cards, lacking a systematic ledger management.
Impact: The efficiency of manual scheduling and progress recording is low, difficult to respond swiftly to order changes and market demands, leading to production delays, increasing the likelihood of overdue product deliveries, decreasing customer satisfaction, and damaging the company's reputation.
Tool and Equipment Management
Current Situation: Tools, measuring instruments, and molds remain at the basic inventory management level, and equipment in the U9 system only maintains basic ledgers without covering all lifecycle management stages for procurement requests, maintenance, repairs, etc.
Impact: The absence of lifecycle management means that equipment failures and tool wear cannot be prevented or addressed in a timely manner, impacting production efficiency and product quality, increasing production costs and quality risks, potentially leading to a rise in non-compliance rates.
Parts and Traceability Management
Current Situation: Relies on serial number management for parts traceability, and efficiency regarding completion report submission in the production process is low, making it difficult to trace.
Impact: Unable to effectively trace across the entire process, making it impossible to quickly locate the root cause when quality issues arise, increasing quality risks and customer complaint rates, affecting the company's market competitiveness, and potentially leading to customer loss.
Standard Working Hour and Performance Management
A standard working hours system has not been established, and management cannot accurately assess worker performance and conduct capacity analysis.
It is difficult to scientifically assess employee performance and capacity, challenging to motivate employees to improve production efficiency, detrimental to production process optimization and cost control, leading to increased labor costs and low production efficiency.
Engineering Changes and BOM Management
Assembly processes frequently require BOM changes due to changing demands, and the engineering department faces a complex and cumbersome process to remake the BOM.
The BOM change process is complicated, easily leading to production chaos, increased material waste, and prolonged production cycles, affecting product quality stability, increasing production costs, and the possibility of delivery delays.
🤯 The root of these problems lies in the inefficiency of the traditional management model and the lack of digital technology application.
Traditional management methods overly rely on manual operations and paper records, making information transmission slow, inaccurate, and difficult to achieve real-time data sharing and analysis.
Only by leveraging digital means, such as introducing advanced MES systems, can the information silos be broken, achieving visualization, transparency, and smart management of the production process, precisely optimizing and coordinating various business links, effectively resolving the aforementioned issues, enhancing Baishite’s core competitiveness, meeting the industry's stringent requirements, and ensuring the company’s continued development amidst fierce market competition.
4. Project Blueprint (Goals)
Customer Strategic Goals:
Complete the transformation from a product-oriented to a service-oriented manufacturing industry within the next 3 to 5 years, providing rental and after-sales services based on products to improve customer satisfaction and, in turn, enhance customer loyalty.
Customer Operational Goals:
Cost Goals:
Achieve dual cost accounting, namely: actual cost (for accounting purposes), standard cost (for management purposes), cost optimization and management
Quality Goals:
Achieve SN-level inspection of the production process to achieve full-process traceability of quality
Delivery Goals:
Achieve transparent production in the workshop, real-time display of production progress and abnormal situations, enhance internal coordination efficiency, and shorten the product production cycle
Project Goals:
Cost Goals:
By achieving coordinated production, supply, and sales while ensuring visible and transparent production and full-process traceability, improve operational optimization, increase production efficiency, and reduce costs to improve the management level of each workshop and department of Baishite Tool Factory.
Quality Goals:
From the single task issued to inventory to product shipment, establish monitoring of product quality and production efficiency, implement lean production, and realize refined management of the workshop.
Delivery Goals:
Resolve issues of mutual independence and lack of data sharing between production planning, BOM manufacturing, process route, production process management, production progress management, quality management, and material management, enhance inter-departmental coordination, and solidify the business foundation.
System Architecture:
The first phase of the project went live in September 2023, focusing on urgent issues such as Baishite's production planning management, process management, quality management, barcode management, and full-process traceability of products.
For example, by leveraging U9 integrated production orders and schedule optimization, the production process is ensured through assembly code binding, production process inspection and external inspections guarantee quality, utilizing material batches/serial numbers for traceability, and automatically generating daily production reports to assist decision-making—all aimed at laying the digital management foundation for the enterprise.
The second phase of the project is planned based on the results of the first phase and the continuous development needs of the enterprise.
The introduction of the equipment management module is due to the shortcomings in tool and equipment management exposed in the first phase; the lack of lifecycle management impacts production efficiency and quality. This module can improve the operational status of equipment.
The cost management module addresses rising costs due to production issues in the early stages and can provide accurate accounting and analysis of cost components, helping the enterprise to reduce costs and increase efficiency.
The supply chain management module addresses collaborative issues across multinational business supply chains and can optimize processes from procurement to delivery, enhancing the enterprise's market responsiveness.
Integrating this foundational data with Baishite's PLM system and the U9 system will achieve data consistency and eliminate data silos.
Providing light consulting solutions will help Baishite enhance its new factory planning management capabilities, thereby improving production, supply, and sales coordination efficiency as well as company operational management capabilities.
5. Specific Solutions
No. | Core Business Process | Decomposed Process | New Cloud Solution |
|---|---|---|---|
1 | Cost | Work hour data collection | Process timing professional version |
2 | Work hour data application | ||
3 | After-sales management | After-sales management solution | |
4 | Quality | SN management | SN management professional version |
5 | Non-conformity control | Production process inspection professional version | |
6 | Pending inspection list | ||
7 | Quality inspection report file management | ||
8 | Delivery | Workshop-level scheduling | Workshop planning professional version |
9 | Production reporting | Production management professional version | |
10 | One code to the end | One code to the end |
5.1 Cost Management Solution
5.1.1 Actual Work Hour Statistics
Pain Point Analysis:
Standard work hours are entirely roughly estimated by the process personnel, lacking actual work hour data to support standard work hour updates; each month the work hour reports provided to the finance and HR departments require a large amount of time, and data accuracy is questionable.
Solution Details:
Solution Summary:
Automatic Work Hour Statistics: The system will automatically start the timer when the production task begins, pausing the timer synchronously when the task is paused and resuming it when the task continues until the work report for completion is automatically stopped.
Flexible Multi-person Start Mode: The system supports single or multiple person collaboration in processing the same product. At the start of the production task, it can choose to have either one or multiple people participate depending on production needs, and the system will record each one's timing data separately.
Equipment Selection and Timing: To adapt to a situation where one person operates multiple devices, during the start, the production personnel first select themselves, then choose the equipment to be used, and finally select the starting SN. Once the required operating SN is confirmed, the system will automatically begin timing for that device and allow switching to other devices within the production task as needed, recording the usage time for each equipment separately.
Continuity and Flexibility of Shifts: The system allows personnel from the next shift to choose to continue working on products not finished from the previous shift, or to start a new processing flow with another device under the same task based on the real situation.
One-click Report Export Function: The system provides a one-click export function to enable management personnel to quickly obtain detailed reports of actual work hour data, facilitating production monitoring, cost accounting, and performance evaluation.
Value of the Solution:
Collecting the genuine processing time during the production process provides data support for cost management and performance management.
Advantages of the Solution:
Covers various scenarios in Baishite's daily production reporting and timing, reducing the difficulty of operations for production personnel and ensuring the ease and completeness of work hour data collection.
How to Implement the Solution:
What data needs to be collected:
Each product's actual processing time for each self-made process, as well as the work hour proportion of each participant.
How to collect data:
1. Specify the personnel involved in processing at each start or continuation, and automatically generate actual processing times for each work report upon completion;
2. For a single start, if multiple SNs are reported in bulk upon completion, it will generate multiple work report records, and the processing time for each SN work report record = total processing time / total number of reports.
Solution Implementation Results:
Qualitative Description:
Through the collection and application of actual work hour data for all production tasks, data support is provided for finance personnel to calculate labor costs and analyze capacity, serving as a basis for performance management and assessment by HR personnel and providing a foundation for the accuracy of standard work hours and process improvement.
Quantitative Description:
1. The MES system mandates standardized procedures for production task work hour data collection, avoiding over 95% of erroneous operations leading to abnormal data collection, achieving a data collection accuracy of 90%;
2. Monthly statistical workings for work hours see efficiency improvements of 300%.
Work Reporting Records
Work Reporting Record Details
Work Hour Record Table
5.2 Quality Management Solution
5.2.1 End-to-End Traceability of SN
Pain Point Analysis:
Baishite operates in the oil and natural gas extraction tool manufacturing industry and the need for efficient production under large-scale orders requires "batch reporting" to increase production data entry efficiency;
Due to the complexity of its product processes and customer customization demands, cost control and ensuring timely delivery require addressing the difficulties in modifying SN products in production;
SN products refer to products identified by unique serial numbers for precise tracking management, and once an SN is generated, allowing deletion is necessary; otherwise, it will result in data discrepancies across production management, quality traceability, inventory statistics, and impact the accuracy of subsequent plans.
To maintain quality control over outsourced products within international dealings and collaborate with international partners without disrupting production pace, once SN products are used, they need to be supported for re-inventory; otherwise, obstacles in process continuity and quality traceability could arise during rework or additional processing.
Solution Details:
Solution Summary:
Further development based on the original SN serial number management solution:
Batch Reporting:
Develop a function allowing users to input serial numbers in batch and report them all at once to improve production data entry efficiency.
In-process Inventory:
Establish a serial number management process for in-process items so semi-finished goods during the production process can also be tracked and managed by the system.
Production Outsourcing and Receipt Inspection:
Enhance serial number management for production outsourcing to ensure outsourced products are accurately tracked.
Integrate outsourced receipt inspection processes to ensure received outsourced products meet quality standards and correctly record serial number information.
Serial Number Deletion:
Provide a secure and validated serial number deletion function to handle exceptional situations during production, such as product scrapping.
Serial Number Re-inventory:
If a serial number is consumed in a production order, and the product needs to be re-inventoried (e.g., rework or additional processing), the system should allow these serial numbers to be recorded again through other inventory processes.
Value of the Solution:
Closely managing daily serial number production tasks ensures basis for full-process traceability and subsequent after-sales management.
Advantages of the Solution:
The main process is connected, and the SN functionality is complete.
How to Implement the Solution:
What data needs to be collected:
1. Rapid positioning of SN states from production preparation to production storage;
2. Full-process traceability of SN.
How to collect data:
SN-related task handling or cancellation updates the SN material number, material name, current process, status, and other information in real time.
Solution Implementation Results:
Qualitative Description:
The MES system’s closed-loop management of SN production tasks has laid the groundwork for the development of interfaces connecting SN material disassembly and inventory processes with the U9 system.
Quantitative Description:
Completeness of data regarding SN, inventory, production, and inspection has increased by 90%.
In-process SN Inventory
Unused SN Deletion
Multiple uses of the same SN from production orders
5.2.2 Production Process Inspection
Pain Point Analysis:
1. Inspectors are unclear about how many pending inspection tasks are in production, making it impossible to prepare reasonably in advance. Often they receive several inspection tasks unexpectedly just before the end of their shifts, leading to task backlog;
2. Production personnel communicate with inspectors offline for inspection task handling and cannot assess the efficiency of those tasks;
3. Inspection records and non-conformity handling records are managed offline and later entered manually into Excel, making data statistical analysis and traceability difficult;
4. After inspection tasks for flaw detection and final inspection are completed, inspectors manually input inspection data into report templates, then print flaw detection and final inspection reports, leading to inefficiency and making traceability difficult.
Solution Details:
Solution Summary:
Develop upon the existing 'Production Process Inspection' functions:
1. Create a 'Pending Inspection List' form; when designated inspection personnel start working, the system automatically generates a pending inspection list. Upon completion, they can update the status of pending inspection tasks, allowing inspectors to jump directly to production inspection tasks for handling;
2. The system will automatically generate and push inspection tasks to inspectors, reducing communication costs and enabling analysis of inspection task performance;
3. Once inspection tasks are completed, the system will create inspection records and non-conformity handling records automatically, providing references for quality traceability, problem analysis, and improvement;
4. Pre-set templates for various reports in the system. Once inspection tasks are completed, quality inspectors can print flaw detection or final inspection reports with one click.
Value of the Solution:
Standardized processes streamline the daily operations of production and inspection personnel, with detailed recording of self-inspections, special inspections, non-conformity handling, flaw detection reports, and final inspection reports, ensuring complete traceability of quality.
Advantages of the Solution:
The 'Pending Inspection List' functionality enables inspectors to plan and arrange work in advance, avoiding unallocated early tasks and deposit situations later; simultaneously using the one-click printing function for 'Flaw Detection Report' and 'Final Inspection Report' reduces duplicated data entry, improving efficiency.
How to Implement the Solution:
What data needs to be collected:
Production inspection records, receipt inspection records (outsourced), production non-conformity handling forms, receipt inspection non-conforming product handling forms (outsourced), flaw detection reports, and final inspection reports.
How to collect data:
1. The system records automatically after inspectors handle production inspection tasks;
2. The system records automatically after inspectors handle receipt inspection tasks;
3. The system records automatically after completing non-conformity processing forms;
4. The system records automatically after receipt of handling forms for non-conforming products;
5. Inspectors can quickly create and save reports upon completion of production inspection forms, generating report data.
Solution Implementation Results:
Qualitative Description:
Through the development of the pending inspection list and flaw detection reports, the implementation achieved a closed-loop management system for production process inspections before, during, and after tasks, saving substantial communication costs and preventing repetitive manual data entry, greatly improving inspectors’ work efficiency and providing data foundations for quality traceability and process improvement.
Quantitative Description:
The efficiency of generating flaw detection and final inspection reports has improved by 50%, with completeness and accuracy of inspection data increasing by 20%.
Pending Inspection List
5.2.3 Non-conforming Product Management
Pain Point Analysis:
1. Non-conforming product handling forms circulate in paper format, leading to delayed information feedback and untimely abnormal handling;
2. Non-conforming handling requires offline verification involving the process department, manufacturing department, and quality department, consuming extensive time.
Solution Details:
Solution Summary:
1. During production reporting, if there are any non-conforming products, a second confirmation will occur to avoid inaccurate non-conforming data due to erroneous production personnel operations;
2. After generating pending non-conforming product tasks, quality inspectors will assess non-conformance based on drawings and factory conditions, making preliminary determinations, which include concession acceptance, scrapping, rework, and repair methods, initiating a sign-off process for re-working non-conforming products;
3. Reviewers or department heads from the process department, manufacturing department, and quality department will conduct sign-off reviews via WEB or APP, and once all approvals are granted, the resolution for non-conforming products will take effect.
Value of the Solution:
1. Optimizes information transmission methods: realizes electronic transfer of non-conforming product handling, production orders, blueprints, and other information, ensuring accuracy and timeliness of information delivery, improving efficiency in determining non-conformance;
2. Continuous improvement: details regarding the reasons for non-conforming handling, judgments, processing methods will be recorded in the MES system, supporting periodic quality analysis for in-depth discussion and improvement of quality management systems.
Advantages of the Solution:
1. Through standardized operational interfaces and processes, employees can operate and inspect according to unified standards, reducing the impact of human intervention and subjective judgment, improving the normativity and consistency of work;
2. The MES system has traceability capabilities, enabling swift identification of root causes for quality issues, helping the enterprise implement targeted measures, aiding in lowering non-conforming rates, reducing waste, and decreasing costs.
How to Implement the Solution:
What data needs to be collected:
Production inspection records, receipt inspection records (outsourced), pending non-conforming products, production non-conformity handling forms, receipt inspection non-conformity handling forms (outsourced)
How to collect data:
1. The system auto-records post self-inspection reports by production personnel;
2. The system auto-records post-handling of production inspection tasks by inspectors;
3. The system auto-records after the completion of outsourced receipt inspection tasks;
4. The system auto-records after initiating preliminary examination sign-off processes for pending non-conforming products;
5. The system auto-records once personnel from process/manufacturing/quality have concluded the handling forms for non-conforming products.
Solution Implementation Results:
Qualitative Description:
Achieving secondary quality assurance through sign-off processes prevents erroneous handling due to individual inspector judgment errors. The approval process supports professional advice for the quality results and personnel handling non-conforming products, effectively improving handling efficiency and product quality.
The MES system keys in all non-conforming product activities into a secure database, supporting rapid searches, benefiting in problem analysis, responsibility traceability, and continuous improvement.
Quantitative Description:
Efficiency in handling non-conforming products improved by 40%, with completeness and accuracy of non-conforming handling data increased by 30%.
Solution-associated items (attach data package link)
Non-conforming Reporting Prompt
Pending Non-conforming Products
Non-conforming Product Handling Form
5.3 Delivery Solution
5.3.1 Workshop Planning
Pain Point Analysis:
1. Using Excel for offline scheduling, the process is complex and lacks change logs;
2. The feasibility of the schedule is low, creating a disconnect with offline production leading to low plan fulfillment rates;
3. It is difficult to trace real-time production site statuses, with challenges in adjustments for insertion or urgent orders.
Solution Details:
Solution Summary:
1. By comprehensively considering production orders and the availability of equipment resources, realize reasonable arrangement and optimization of production tasks;
2. Connect scheduling data and production execution data to view execution status in real-time, allowing quick effective adjustments for abnormal work orders;
3. Provide various functions to assist planners with efficiently completing urgent or insertion tasks.
Value of the Solution:
Increases equipment utilization and production scheduling efficiency, saving time and labor costs; improving the feasibility of the production plan will enhance plan fulfillment rates and reduce order delays.
Advantages of the Solution:
1. System scheduling reduces dependence on planners' capabilities to a degree;
2. Real-time tracking of production site execution improves the response efficiency for abnormal tasks or urgent insertion cases.
How to Implement the Solution:
What data needs to be collected:
Material resource capacity comparison table, planned production quantities and delivery dates for production orders, scheduling parameters
How to collect data:
1. Manually maintain or import the material resource capacity comparison table based on technical data;
2. Synchronize MES production orders upon approving U9 production orders;
3. Configure default scheduling parameters based on Baishite's actual situation.
Solution Implementation Results:
Qualitative Description:
Greatly reduces the workload of planners and increases equipment utilization; the feasibility of production plans has significantly improved, with a marked decrease in overdue production orders.
Quantitative Description:
The production cycle of finished products decreases by 15%; inventory accuracy improves by 20%.
Solution-associated items (attach data package link)
Pending Scheduling - Start Scheduling
Current Scheduling - Resource Adjustment/Scheduling Dispatch
5.3.2 Production Management
Pain Point Analysis:
1. Using paper-based production records to manage production processes requires each SN to print a separate production record form, which may be damaged or lost, undermining the integrity and accuracy of production process data collection;
2. The production cycles of components are generally lengthy, making real-time monitoring of ongoing production tasks difficult, with slow response to abnormal production tasks;
3. All production process data is recorded offline, making capacity statistics and responsibility traceability relatively challenging.
Solution Details:
Solution Summary:
1. Production reporting via APP supports automatic validation of self-inspection aims;
2. In-process management updates material numbers, material names, current processes, and statuses of in-process items in real time to promptly locate the current processing status of each SN;
3. Utilize employee capacity tables and overdue statistics to quickly analyze capacity and overdue production information.
Value of the Solution:
Enables real-time data collection of production processes via production task reporting, allowing management to quickly monitor and address abnormal situations;
Completeness and accuracy in capturing production process data provide data support for analyzing production anomalies and improving the production process.
Advantages of the Solution:
Replacing paper-based record forms with APP-based reporting standardizes the operations of production personnel, enhancing reporting efficiency and data completeness;
Enables planners to see production task execution status themselves, reducing communication costs.
How to Implement the Solution:
What data needs to be collected:
Reporting records, overall progress and overdue statuses of production orders
How to collect data:
1. Automatically generates reporting records post-production task reporting;
2. The system will automatically update the 'overall progress' and 'planned completion time' of the production order list;
3. Each overdue production task is updated for each overdue reason in the tracking statistics reports.
Solution Implementation Results:
Qualitative Description:
By integrating data with the U9 system, achieving coordinated production and sales, along with refined management of workshops.
Quantitative Description:
All data from the production process now has informational management, with data integrity increased by 90%, and departmental collaboration efficiency improved by 30%.
Solution-associated items (attach data package link)
Production Order List
Employee Capacity Table
5.3.3 One Code to the End
Pain Point Analysis:
1. Baishite's process coding generation rule is 'number + process', for example, 020 turning, 030 turning, resulting in each production staff receiving multiple production tasks, requiring them more time to locate production tasks when reporting;
2. Daily material issue, production task, production inspection task, inventory tasks consume significant amounts of time for business personnel.
Solution Details:
Solution Summary:
1. Print material labels recognizable by the MES system during batch material or SN material inventory in the U9 system;
2. After MES workshop planning dispatch, warehouse personnel can quickly handle material issue tasks by scanning production order one code to the end labels and material issue labels in sequence using a PDA;
3. Production personnel can quickly locate production tasks by scanning production order one code to the end labels to begin, pause, continue, and complete operations;
4. Quality inspectors can quickly locate inspection tasks and pending non-conforming products for handling by scanning the production order one code to the end labels;
5. Warehouse personnel can quickly locate outsourced material issue tasks, outsourced inventory tasks, pending inspection tasks, outsourced inspection inventory tasks, and return tasks to be processed by scanning production order one code to the end labels;
6. Quality inspectors can quickly locate outsourced receipt inspection tasks for handling by scanning production order one code to the end labels;
7. Warehouse personnel can quickly locate production inventory and scrapping processes via scanning production order one code to the end labels;
8. Print material labels during production inventory simultaneously, along with the physical goods;
9. Query and reprint material labels for goods already in stock;
10. Management personnel can scan to query the current progress of production tasks.
Value of the Solution:
Complete traceability management via scanning throughout the production process, enabling production personnel to quickly carry out current tasks with one scan, while giving management personnel a quick overview of the current production progress.
Advantages of the Solution:
Increases efficiency in task handling of business personnel and reduces erroneous data.
How to Implement the Solution:
What data needs to be collected:
Material labels, production order one code to the end labels (SN labels, transfer card labels)
How to collect data:
1. Print material labels during U9 raw materials procurement or other inventory;
2. Print material labels during U9 parts disassembly inventory;
3. Print production order one code to the end labels when MES planning is dispatched; that is, SN production orders print SN labels, while batch production orders print transfer card labels;
4. Print material labels during the last production process or outsourced inventory.
Solution Implementation Results:
Qualitative Description:
Increases efficiency in inventory task handling by warehouse personnel, production task handling by production personnel, and quality inspection task handling by quality inspectors, thereby improving the accuracy of inventory data.
Quantitative Description:
1. Efficiency of handling inventory, production, and inspection tasks increased by 50%;
2. Accuracy of inventory data improved by 20%.
U9 Procurement Inventory Material Label
MES Production Inventory Material Label
Batch Production Order One Code to the End Label
Serial Number Production Order One Code to the End Label
6. Project Effect Summary
Project Effect Introduction:
Cost:
Through the work hour statistics feature capturing actual work hours, supporting the HR department for performance management evaluations, average performance of production personnel has improved by 40%.
Quality:
1. The quality department has achieved fully digitalized management of comprehensive data, including quality plans, pending inspection lists, inspection records, non-conformity handling forms, flaw detection reports, and final inspection reports, with daily work efficiency for quality inspectors increasing by more than 40%;
2. Real-time tracking of the latest dynamics and comprehensive inventory, production, and inspection historical records of SN components.
Delivery:
The MES system provides real-time and accurate production process data, enables refined management of workshop production, reduces the production cycle of components by 15%, and significantly decreases overdue order situations.
1. Customer Summary Card
Chengdu Baishite Tool Co., Ltd. was established on October 17, 2019, and is a wholly-owned subsidiary of Chengdu Baishite Diamond Drill Bit Co., Ltd. It is a nationally recognized "high-tech enterprise" and was selected as a national-level specialized and innovative "little giant" enterprise in 2020, designated by the Chengdu High-tech Zone as a strategically supportive enterprise for promoting "three times of entrepreneurship" and an "high-end equipment manufacturing" enterprise.
Baishite is a multinational enterprise with both domestic and international operations. The company has factories in Houston, USA, and Dammam, Saudi Arabia, and has branches in the Middle East, Russia, and the USA, with several offices in major large oil fields overseas. Currently, it owns the most complete CNC machining center production line in the industry, achieving fully intelligent and digitalized production, with an annual output of over 8,000 various drill bits.
In 2018, Baishite signed a cooperation agreement with Schlumberger, the world's largest oil service company, whereby Schlumberger transferred its globally leading Dyna-Drill high-performance drill tool production line to Baishite. Following this, Chengdu Baishite Tool Co., Ltd. was established specifically to manufacture Dyna-Drill high-performance drill tools and other special drilling tools.
Personnel Scale: About 300 people
Production Value: About 600 million
Industry Position: A domestic technology leader and a producer and service provider of drill bits and drilling tools with strong influence internationally, being the largest provider of diamond drill bit drilling technology services for oil exploration in Asia.
Main Products: Drill rods, hydraulic expansion tools
Application Industries: Oil and natural gas extraction
Main Markets: Middle East, Russia, USA, and domestic
Downstream Customers: Baishite Diamond Drill Bit Co., Ltd.
Production Process: Machining/glue injection vulcanization/assembly
2. Project Background Introduction
Industry Characteristics
Baishite is in the oil and natural gas extraction tool manufacturing industry, a technology-intensive field, where products need to operate stably in extreme underground mining environments like high temperature, high pressure, and high corrosion. Thus, there are very high demands for product quality and reliability. Moreover, oil and gas extraction projects have a high degree of continuity, and any delay or quality issue with drilling tools could lead to work stoppages, resulting in massive economic losses and potential safety hazards, making the timeliness of delivery critically important.
As a multinational enterprise with both domestic and overseas operations, Baishite works closely with large global oil service companies and must adhere to internationally high standards of quality and respond to complex and changing order demands. Its flagship products, drill rods and hydraulic expansion tools, involve complex and intricate processes covering machining, glue injection vulcanization, assembly, etc. Each link is closely interconnected, requiring high precision, stability, and coordination in the production process to ensure the products play a key role in oil and gas extraction operations.
🤔 Risks
Customer Loss: If focusing solely on product supply, it may not meet the growing rental and after-sales needs of customers. In the face of complex and changing extraction projects, customers may likely turn to competitors that can provide comprehensive service. For example, if tools malfunction at the extraction site, if Baishite cannot respond promptly for repairs, customers will inevitably choose other suppliers with better service to maintain project progress, leading to a gradual loss of customer resources.
Market Share Shrinkage: There is intense competition with product homogeneity, and relying solely on product performance is insufficient to stand out. Competitors are expanding their service boundaries, and if Baishite remains stagnant, its unique selling points will continue to diminish. As new companies impact the market with innovative service models, the existing market share will gradually be eroded, tightening survival space.
Profit Growth Constraints: On one hand, fluctuations in raw material prices and rising production costs squeeze product profit margins; on the other hand, missing out on new profit channels such as rentals and after-sales results in sluggish revenue growth and long-term developmental constraints, making it difficult to cope with financial pressures brought about by market changes.
Decreased Industry Adaptability Risk: The industry is moving towards service-oriented manufacturing and places increasing emphasis on the integration of technology and services, such as the digital operation and maintenance of equipment. If it does not transform, Baishite will become disconnected from industry trends, lagging in technology Application and service innovation, losing market voice, and eventually becoming marginalized.
💪 Transformation Decision
Given the severe situation and potential risks in the industry, Baishite has resolutely decided to transition from a **product-oriented to a service-oriented** manufacturing industry. The aim is to deeply embed rental and after-sales services based on quality products in the next 3-5 years, comprehensively align with customer needs, increase customer satisfaction and loyalty, reshape the competitive advantage of the enterprise, broaden profit channels, and achieve sustainable development.
🚀 Introduction of MES
The traditional management model has numerous problems, planning and material processes lack MRP operation, communication is chaotic, and daily accounts are unclear, leading to invalid production plans; production plans and progress management rely on manual work, which is inefficient and difficult to track; management modules such as tools and equipment, parts and traceability, standard working hours and performance, engineering changes and BOM are all fraught with issues.
To break the information silos, achieve production visualization, transparency, and intelligence, Baishite is determined to introduce the MES system, accurately optimize business processes, and collaborate efficiently among all links to lay a solid foundation for transformation.
3. Current Situation and Challenges
Current Situation of Customer Business and Its Impact
Planning and Material Management
Current Situation: Baishite has not been able to effectively run material requirements planning (MRP) in the U9 system, with the engineering manager doubling as the PMC position, sales demands conveyed sporadically via phone and WeChat, and no daily accounts being settled.
Impact: Unable to accurately formulate production plans, prone to material backlog or shortages, increasing inventory costs and capital occupation costs, affecting delivery times, ultimately leading to breach of contract risks.
Production Planning and Progress Management
Current Situation: Relies on manual tables to arrange production plans and record progress, manually inputting data after onsite supervision, and tracking ongoing production relies solely on process cards, lacking a systematic ledger management.
Impact: The efficiency of manual scheduling and progress recording is low, difficult to respond swiftly to order changes and market demands, leading to production delays, increasing the likelihood of overdue product deliveries, decreasing customer satisfaction, and damaging the company's reputation.
Tool and Equipment Management
Current Situation: Tools, measuring instruments, and molds remain at the basic inventory management level, and equipment in the U9 system only maintains basic ledgers without covering all lifecycle management stages for procurement requests, maintenance, repairs, etc.
Impact: The absence of lifecycle management means that equipment failures and tool wear cannot be prevented or addressed in a timely manner, impacting production efficiency and product quality, increasing production costs and quality risks, potentially leading to a rise in non-compliance rates.
Parts and Traceability Management
Current Situation: Relies on serial number management for parts traceability, and efficiency regarding completion report submission in the production process is low, making it difficult to trace.
Impact: Unable to effectively trace across the entire process, making it impossible to quickly locate the root cause when quality issues arise, increasing quality risks and customer complaint rates, affecting the company's market competitiveness, and potentially leading to customer loss.
Standard Working Hour and Performance Management
A standard working hours system has not been established, and management cannot accurately assess worker performance and conduct capacity analysis.
It is difficult to scientifically assess employee performance and capacity, challenging to motivate employees to improve production efficiency, detrimental to production process optimization and cost control, leading to increased labor costs and low production efficiency.
Engineering Changes and BOM Management
Assembly processes frequently require BOM changes due to changing demands, and the engineering department faces a complex and cumbersome process to remake the BOM.
The BOM change process is complicated, easily leading to production chaos, increased material waste, and prolonged production cycles, affecting product quality stability, increasing production costs, and the possibility of delivery delays.
🤯 The root of these problems lies in the inefficiency of the traditional management model and the lack of digital technology application.
Traditional management methods overly rely on manual operations and paper records, making information transmission slow, inaccurate, and difficult to achieve real-time data sharing and analysis.
Only by leveraging digital means, such as introducing advanced MES systems, can the information silos be broken, achieving visualization, transparency, and smart management of the production process, precisely optimizing and coordinating various business links, effectively resolving the aforementioned issues, enhancing Baishite’s core competitiveness, meeting the industry's stringent requirements, and ensuring the company’s continued development amidst fierce market competition.
4. Project Blueprint (Goals)
Customer Strategic Goals:
Complete the transformation from a product-oriented to a service-oriented manufacturing industry within the next 3 to 5 years, providing rental and after-sales services based on products to improve customer satisfaction and, in turn, enhance customer loyalty.
Customer Operational Goals:
Cost Goals:
Achieve dual cost accounting, namely: actual cost (for accounting purposes), standard cost (for management purposes), cost optimization and management
Quality Goals:
Achieve SN-level inspection of the production process to achieve full-process traceability of quality
Delivery Goals:
Achieve transparent production in the workshop, real-time display of production progress and abnormal situations, enhance internal coordination efficiency, and shorten the product production cycle
Project Goals:
Cost Goals:
By achieving coordinated production, supply, and sales while ensuring visible and transparent production and full-process traceability, improve operational optimization, increase production efficiency, and reduce costs to improve the management level of each workshop and department of Baishite Tool Factory.
Quality Goals:
From the single task issued to inventory to product shipment, establish monitoring of product quality and production efficiency, implement lean production, and realize refined management of the workshop.
Delivery Goals:
Resolve issues of mutual independence and lack of data sharing between production planning, BOM manufacturing, process route, production process management, production progress management, quality management, and material management, enhance inter-departmental coordination, and solidify the business foundation.
System Architecture:
The first phase of the project went live in September 2023, focusing on urgent issues such as Baishite's production planning management, process management, quality management, barcode management, and full-process traceability of products.
For example, by leveraging U9 integrated production orders and schedule optimization, the production process is ensured through assembly code binding, production process inspection and external inspections guarantee quality, utilizing material batches/serial numbers for traceability, and automatically generating daily production reports to assist decision-making—all aimed at laying the digital management foundation for the enterprise.
The second phase of the project is planned based on the results of the first phase and the continuous development needs of the enterprise.
The introduction of the equipment management module is due to the shortcomings in tool and equipment management exposed in the first phase; the lack of lifecycle management impacts production efficiency and quality. This module can improve the operational status of equipment.
The cost management module addresses rising costs due to production issues in the early stages and can provide accurate accounting and analysis of cost components, helping the enterprise to reduce costs and increase efficiency.
The supply chain management module addresses collaborative issues across multinational business supply chains and can optimize processes from procurement to delivery, enhancing the enterprise's market responsiveness.
Integrating this foundational data with Baishite's PLM system and the U9 system will achieve data consistency and eliminate data silos.
Providing light consulting solutions will help Baishite enhance its new factory planning management capabilities, thereby improving production, supply, and sales coordination efficiency as well as company operational management capabilities.
5. Specific Solutions
No. | Core Business Process | Decomposed Process | New Cloud Solution |
|---|---|---|---|
1 | Cost | Work hour data collection | Process timing professional version |
2 | Work hour data application | ||
3 | After-sales management | After-sales management solution | |
4 | Quality | SN management | SN management professional version |
5 | Non-conformity control | Production process inspection professional version | |
6 | Pending inspection list | ||
7 | Quality inspection report file management | ||
8 | Delivery | Workshop-level scheduling | Workshop planning professional version |
9 | Production reporting | Production management professional version | |
10 | One code to the end | One code to the end |
5.1 Cost Management Solution
5.1.1 Actual Work Hour Statistics
Pain Point Analysis:
Standard work hours are entirely roughly estimated by the process personnel, lacking actual work hour data to support standard work hour updates; each month the work hour reports provided to the finance and HR departments require a large amount of time, and data accuracy is questionable.
Solution Details:
Solution Summary:
Automatic Work Hour Statistics: The system will automatically start the timer when the production task begins, pausing the timer synchronously when the task is paused and resuming it when the task continues until the work report for completion is automatically stopped.
Flexible Multi-person Start Mode: The system supports single or multiple person collaboration in processing the same product. At the start of the production task, it can choose to have either one or multiple people participate depending on production needs, and the system will record each one's timing data separately.
Equipment Selection and Timing: To adapt to a situation where one person operates multiple devices, during the start, the production personnel first select themselves, then choose the equipment to be used, and finally select the starting SN. Once the required operating SN is confirmed, the system will automatically begin timing for that device and allow switching to other devices within the production task as needed, recording the usage time for each equipment separately.
Continuity and Flexibility of Shifts: The system allows personnel from the next shift to choose to continue working on products not finished from the previous shift, or to start a new processing flow with another device under the same task based on the real situation.
One-click Report Export Function: The system provides a one-click export function to enable management personnel to quickly obtain detailed reports of actual work hour data, facilitating production monitoring, cost accounting, and performance evaluation.
Value of the Solution:
Collecting the genuine processing time during the production process provides data support for cost management and performance management.
Advantages of the Solution:
Covers various scenarios in Baishite's daily production reporting and timing, reducing the difficulty of operations for production personnel and ensuring the ease and completeness of work hour data collection.
How to Implement the Solution:
What data needs to be collected:
Each product's actual processing time for each self-made process, as well as the work hour proportion of each participant.
How to collect data:
1. Specify the personnel involved in processing at each start or continuation, and automatically generate actual processing times for each work report upon completion;
2. For a single start, if multiple SNs are reported in bulk upon completion, it will generate multiple work report records, and the processing time for each SN work report record = total processing time / total number of reports.
Solution Implementation Results:
Qualitative Description:
Through the collection and application of actual work hour data for all production tasks, data support is provided for finance personnel to calculate labor costs and analyze capacity, serving as a basis for performance management and assessment by HR personnel and providing a foundation for the accuracy of standard work hours and process improvement.
Quantitative Description:
1. The MES system mandates standardized procedures for production task work hour data collection, avoiding over 95% of erroneous operations leading to abnormal data collection, achieving a data collection accuracy of 90%;
2. Monthly statistical workings for work hours see efficiency improvements of 300%.
Work Reporting Records
Work Reporting Record Details
Work Hour Record Table
5.2 Quality Management Solution
5.2.1 End-to-End Traceability of SN
Pain Point Analysis:
Baishite operates in the oil and natural gas extraction tool manufacturing industry and the need for efficient production under large-scale orders requires "batch reporting" to increase production data entry efficiency;
Due to the complexity of its product processes and customer customization demands, cost control and ensuring timely delivery require addressing the difficulties in modifying SN products in production;
SN products refer to products identified by unique serial numbers for precise tracking management, and once an SN is generated, allowing deletion is necessary; otherwise, it will result in data discrepancies across production management, quality traceability, inventory statistics, and impact the accuracy of subsequent plans.
To maintain quality control over outsourced products within international dealings and collaborate with international partners without disrupting production pace, once SN products are used, they need to be supported for re-inventory; otherwise, obstacles in process continuity and quality traceability could arise during rework or additional processing.
Solution Details:
Solution Summary:
Further development based on the original SN serial number management solution:
Batch Reporting:
Develop a function allowing users to input serial numbers in batch and report them all at once to improve production data entry efficiency.
In-process Inventory:
Establish a serial number management process for in-process items so semi-finished goods during the production process can also be tracked and managed by the system.
Production Outsourcing and Receipt Inspection:
Enhance serial number management for production outsourcing to ensure outsourced products are accurately tracked.
Integrate outsourced receipt inspection processes to ensure received outsourced products meet quality standards and correctly record serial number information.
Serial Number Deletion:
Provide a secure and validated serial number deletion function to handle exceptional situations during production, such as product scrapping.
Serial Number Re-inventory:
If a serial number is consumed in a production order, and the product needs to be re-inventoried (e.g., rework or additional processing), the system should allow these serial numbers to be recorded again through other inventory processes.
Value of the Solution:
Closely managing daily serial number production tasks ensures basis for full-process traceability and subsequent after-sales management.
Advantages of the Solution:
The main process is connected, and the SN functionality is complete.
How to Implement the Solution:
What data needs to be collected:
1. Rapid positioning of SN states from production preparation to production storage;
2. Full-process traceability of SN.
How to collect data:
SN-related task handling or cancellation updates the SN material number, material name, current process, status, and other information in real time.
Solution Implementation Results:
Qualitative Description:
The MES system’s closed-loop management of SN production tasks has laid the groundwork for the development of interfaces connecting SN material disassembly and inventory processes with the U9 system.
Quantitative Description:
Completeness of data regarding SN, inventory, production, and inspection has increased by 90%.
In-process SN Inventory
Unused SN Deletion
Multiple uses of the same SN from production orders
5.2.2 Production Process Inspection
Pain Point Analysis:
1. Inspectors are unclear about how many pending inspection tasks are in production, making it impossible to prepare reasonably in advance. Often they receive several inspection tasks unexpectedly just before the end of their shifts, leading to task backlog;
2. Production personnel communicate with inspectors offline for inspection task handling and cannot assess the efficiency of those tasks;
3. Inspection records and non-conformity handling records are managed offline and later entered manually into Excel, making data statistical analysis and traceability difficult;
4. After inspection tasks for flaw detection and final inspection are completed, inspectors manually input inspection data into report templates, then print flaw detection and final inspection reports, leading to inefficiency and making traceability difficult.
Solution Details:
Solution Summary:
Develop upon the existing 'Production Process Inspection' functions:
1. Create a 'Pending Inspection List' form; when designated inspection personnel start working, the system automatically generates a pending inspection list. Upon completion, they can update the status of pending inspection tasks, allowing inspectors to jump directly to production inspection tasks for handling;
2. The system will automatically generate and push inspection tasks to inspectors, reducing communication costs and enabling analysis of inspection task performance;
3. Once inspection tasks are completed, the system will create inspection records and non-conformity handling records automatically, providing references for quality traceability, problem analysis, and improvement;
4. Pre-set templates for various reports in the system. Once inspection tasks are completed, quality inspectors can print flaw detection or final inspection reports with one click.
Value of the Solution:
Standardized processes streamline the daily operations of production and inspection personnel, with detailed recording of self-inspections, special inspections, non-conformity handling, flaw detection reports, and final inspection reports, ensuring complete traceability of quality.
Advantages of the Solution:
The 'Pending Inspection List' functionality enables inspectors to plan and arrange work in advance, avoiding unallocated early tasks and deposit situations later; simultaneously using the one-click printing function for 'Flaw Detection Report' and 'Final Inspection Report' reduces duplicated data entry, improving efficiency.
How to Implement the Solution:
What data needs to be collected:
Production inspection records, receipt inspection records (outsourced), production non-conformity handling forms, receipt inspection non-conforming product handling forms (outsourced), flaw detection reports, and final inspection reports.
How to collect data:
1. The system records automatically after inspectors handle production inspection tasks;
2. The system records automatically after inspectors handle receipt inspection tasks;
3. The system records automatically after completing non-conformity processing forms;
4. The system records automatically after receipt of handling forms for non-conforming products;
5. Inspectors can quickly create and save reports upon completion of production inspection forms, generating report data.
Solution Implementation Results:
Qualitative Description:
Through the development of the pending inspection list and flaw detection reports, the implementation achieved a closed-loop management system for production process inspections before, during, and after tasks, saving substantial communication costs and preventing repetitive manual data entry, greatly improving inspectors’ work efficiency and providing data foundations for quality traceability and process improvement.
Quantitative Description:
The efficiency of generating flaw detection and final inspection reports has improved by 50%, with completeness and accuracy of inspection data increasing by 20%.
Pending Inspection List
5.2.3 Non-conforming Product Management
Pain Point Analysis:
1. Non-conforming product handling forms circulate in paper format, leading to delayed information feedback and untimely abnormal handling;
2. Non-conforming handling requires offline verification involving the process department, manufacturing department, and quality department, consuming extensive time.
Solution Details:
Solution Summary:
1. During production reporting, if there are any non-conforming products, a second confirmation will occur to avoid inaccurate non-conforming data due to erroneous production personnel operations;
2. After generating pending non-conforming product tasks, quality inspectors will assess non-conformance based on drawings and factory conditions, making preliminary determinations, which include concession acceptance, scrapping, rework, and repair methods, initiating a sign-off process for re-working non-conforming products;
3. Reviewers or department heads from the process department, manufacturing department, and quality department will conduct sign-off reviews via WEB or APP, and once all approvals are granted, the resolution for non-conforming products will take effect.
Value of the Solution:
1. Optimizes information transmission methods: realizes electronic transfer of non-conforming product handling, production orders, blueprints, and other information, ensuring accuracy and timeliness of information delivery, improving efficiency in determining non-conformance;
2. Continuous improvement: details regarding the reasons for non-conforming handling, judgments, processing methods will be recorded in the MES system, supporting periodic quality analysis for in-depth discussion and improvement of quality management systems.
Advantages of the Solution:
1. Through standardized operational interfaces and processes, employees can operate and inspect according to unified standards, reducing the impact of human intervention and subjective judgment, improving the normativity and consistency of work;
2. The MES system has traceability capabilities, enabling swift identification of root causes for quality issues, helping the enterprise implement targeted measures, aiding in lowering non-conforming rates, reducing waste, and decreasing costs.
How to Implement the Solution:
What data needs to be collected:
Production inspection records, receipt inspection records (outsourced), pending non-conforming products, production non-conformity handling forms, receipt inspection non-conformity handling forms (outsourced)
How to collect data:
1. The system auto-records post self-inspection reports by production personnel;
2. The system auto-records post-handling of production inspection tasks by inspectors;
3. The system auto-records after the completion of outsourced receipt inspection tasks;
4. The system auto-records after initiating preliminary examination sign-off processes for pending non-conforming products;
5. The system auto-records once personnel from process/manufacturing/quality have concluded the handling forms for non-conforming products.
Solution Implementation Results:
Qualitative Description:
Achieving secondary quality assurance through sign-off processes prevents erroneous handling due to individual inspector judgment errors. The approval process supports professional advice for the quality results and personnel handling non-conforming products, effectively improving handling efficiency and product quality.
The MES system keys in all non-conforming product activities into a secure database, supporting rapid searches, benefiting in problem analysis, responsibility traceability, and continuous improvement.
Quantitative Description:
Efficiency in handling non-conforming products improved by 40%, with completeness and accuracy of non-conforming handling data increased by 30%.
Solution-associated items (attach data package link)
Non-conforming Reporting Prompt
Pending Non-conforming Products
Non-conforming Product Handling Form
5.3 Delivery Solution
5.3.1 Workshop Planning
Pain Point Analysis:
1. Using Excel for offline scheduling, the process is complex and lacks change logs;
2. The feasibility of the schedule is low, creating a disconnect with offline production leading to low plan fulfillment rates;
3. It is difficult to trace real-time production site statuses, with challenges in adjustments for insertion or urgent orders.
Solution Details:
Solution Summary:
1. By comprehensively considering production orders and the availability of equipment resources, realize reasonable arrangement and optimization of production tasks;
2. Connect scheduling data and production execution data to view execution status in real-time, allowing quick effective adjustments for abnormal work orders;
3. Provide various functions to assist planners with efficiently completing urgent or insertion tasks.
Value of the Solution:
Increases equipment utilization and production scheduling efficiency, saving time and labor costs; improving the feasibility of the production plan will enhance plan fulfillment rates and reduce order delays.
Advantages of the Solution:
1. System scheduling reduces dependence on planners' capabilities to a degree;
2. Real-time tracking of production site execution improves the response efficiency for abnormal tasks or urgent insertion cases.
How to Implement the Solution:
What data needs to be collected:
Material resource capacity comparison table, planned production quantities and delivery dates for production orders, scheduling parameters
How to collect data:
1. Manually maintain or import the material resource capacity comparison table based on technical data;
2. Synchronize MES production orders upon approving U9 production orders;
3. Configure default scheduling parameters based on Baishite's actual situation.
Solution Implementation Results:
Qualitative Description:
Greatly reduces the workload of planners and increases equipment utilization; the feasibility of production plans has significantly improved, with a marked decrease in overdue production orders.
Quantitative Description:
The production cycle of finished products decreases by 15%; inventory accuracy improves by 20%.
Solution-associated items (attach data package link)
Pending Scheduling - Start Scheduling
Current Scheduling - Resource Adjustment/Scheduling Dispatch
5.3.2 Production Management
Pain Point Analysis:
1. Using paper-based production records to manage production processes requires each SN to print a separate production record form, which may be damaged or lost, undermining the integrity and accuracy of production process data collection;
2. The production cycles of components are generally lengthy, making real-time monitoring of ongoing production tasks difficult, with slow response to abnormal production tasks;
3. All production process data is recorded offline, making capacity statistics and responsibility traceability relatively challenging.
Solution Details:
Solution Summary:
1. Production reporting via APP supports automatic validation of self-inspection aims;
2. In-process management updates material numbers, material names, current processes, and statuses of in-process items in real time to promptly locate the current processing status of each SN;
3. Utilize employee capacity tables and overdue statistics to quickly analyze capacity and overdue production information.
Value of the Solution:
Enables real-time data collection of production processes via production task reporting, allowing management to quickly monitor and address abnormal situations;
Completeness and accuracy in capturing production process data provide data support for analyzing production anomalies and improving the production process.
Advantages of the Solution:
Replacing paper-based record forms with APP-based reporting standardizes the operations of production personnel, enhancing reporting efficiency and data completeness;
Enables planners to see production task execution status themselves, reducing communication costs.
How to Implement the Solution:
What data needs to be collected:
Reporting records, overall progress and overdue statuses of production orders
How to collect data:
1. Automatically generates reporting records post-production task reporting;
2. The system will automatically update the 'overall progress' and 'planned completion time' of the production order list;
3. Each overdue production task is updated for each overdue reason in the tracking statistics reports.
Solution Implementation Results:
Qualitative Description:
By integrating data with the U9 system, achieving coordinated production and sales, along with refined management of workshops.
Quantitative Description:
All data from the production process now has informational management, with data integrity increased by 90%, and departmental collaboration efficiency improved by 30%.
Solution-associated items (attach data package link)
Production Order List
Employee Capacity Table
5.3.3 One Code to the End
Pain Point Analysis:
1. Baishite's process coding generation rule is 'number + process', for example, 020 turning, 030 turning, resulting in each production staff receiving multiple production tasks, requiring them more time to locate production tasks when reporting;
2. Daily material issue, production task, production inspection task, inventory tasks consume significant amounts of time for business personnel.
Solution Details:
Solution Summary:
1. Print material labels recognizable by the MES system during batch material or SN material inventory in the U9 system;
2. After MES workshop planning dispatch, warehouse personnel can quickly handle material issue tasks by scanning production order one code to the end labels and material issue labels in sequence using a PDA;
3. Production personnel can quickly locate production tasks by scanning production order one code to the end labels to begin, pause, continue, and complete operations;
4. Quality inspectors can quickly locate inspection tasks and pending non-conforming products for handling by scanning the production order one code to the end labels;
5. Warehouse personnel can quickly locate outsourced material issue tasks, outsourced inventory tasks, pending inspection tasks, outsourced inspection inventory tasks, and return tasks to be processed by scanning production order one code to the end labels;
6. Quality inspectors can quickly locate outsourced receipt inspection tasks for handling by scanning production order one code to the end labels;
7. Warehouse personnel can quickly locate production inventory and scrapping processes via scanning production order one code to the end labels;
8. Print material labels during production inventory simultaneously, along with the physical goods;
9. Query and reprint material labels for goods already in stock;
10. Management personnel can scan to query the current progress of production tasks.
Value of the Solution:
Complete traceability management via scanning throughout the production process, enabling production personnel to quickly carry out current tasks with one scan, while giving management personnel a quick overview of the current production progress.
Advantages of the Solution:
Increases efficiency in task handling of business personnel and reduces erroneous data.
How to Implement the Solution:
What data needs to be collected:
Material labels, production order one code to the end labels (SN labels, transfer card labels)
How to collect data:
1. Print material labels during U9 raw materials procurement or other inventory;
2. Print material labels during U9 parts disassembly inventory;
3. Print production order one code to the end labels when MES planning is dispatched; that is, SN production orders print SN labels, while batch production orders print transfer card labels;
4. Print material labels during the last production process or outsourced inventory.
Solution Implementation Results:
Qualitative Description:
Increases efficiency in inventory task handling by warehouse personnel, production task handling by production personnel, and quality inspection task handling by quality inspectors, thereby improving the accuracy of inventory data.
Quantitative Description:
1. Efficiency of handling inventory, production, and inspection tasks increased by 50%;
2. Accuracy of inventory data improved by 20%.
U9 Procurement Inventory Material Label
MES Production Inventory Material Label
Batch Production Order One Code to the End Label
Serial Number Production Order One Code to the End Label
6. Project Effect Summary
Project Effect Introduction:
Cost:
Through the work hour statistics feature capturing actual work hours, supporting the HR department for performance management evaluations, average performance of production personnel has improved by 40%.
Quality:
1. The quality department has achieved fully digitalized management of comprehensive data, including quality plans, pending inspection lists, inspection records, non-conformity handling forms, flaw detection reports, and final inspection reports, with daily work efficiency for quality inspectors increasing by more than 40%;
2. Real-time tracking of the latest dynamics and comprehensive inventory, production, and inspection historical records of SN components.
Delivery:
The MES system provides real-time and accurate production process data, enables refined management of workshop production, reduces the production cycle of components by 15%, and significantly decreases overdue order situations.
1. Customer Summary Card
Chengdu Baishite Tool Co., Ltd. was established on October 17, 2019, and is a wholly-owned subsidiary of Chengdu Baishite Diamond Drill Bit Co., Ltd. It is a nationally recognized "high-tech enterprise" and was selected as a national-level specialized and innovative "little giant" enterprise in 2020, designated by the Chengdu High-tech Zone as a strategically supportive enterprise for promoting "three times of entrepreneurship" and an "high-end equipment manufacturing" enterprise.
Baishite is a multinational enterprise with both domestic and international operations. The company has factories in Houston, USA, and Dammam, Saudi Arabia, and has branches in the Middle East, Russia, and the USA, with several offices in major large oil fields overseas. Currently, it owns the most complete CNC machining center production line in the industry, achieving fully intelligent and digitalized production, with an annual output of over 8,000 various drill bits.
In 2018, Baishite signed a cooperation agreement with Schlumberger, the world's largest oil service company, whereby Schlumberger transferred its globally leading Dyna-Drill high-performance drill tool production line to Baishite. Following this, Chengdu Baishite Tool Co., Ltd. was established specifically to manufacture Dyna-Drill high-performance drill tools and other special drilling tools.
Personnel Scale: About 300 people
Production Value: About 600 million
Industry Position: A domestic technology leader and a producer and service provider of drill bits and drilling tools with strong influence internationally, being the largest provider of diamond drill bit drilling technology services for oil exploration in Asia.
Main Products: Drill rods, hydraulic expansion tools
Application Industries: Oil and natural gas extraction
Main Markets: Middle East, Russia, USA, and domestic
Downstream Customers: Baishite Diamond Drill Bit Co., Ltd.
Production Process: Machining/glue injection vulcanization/assembly
2. Project Background Introduction
Industry Characteristics
Baishite is in the oil and natural gas extraction tool manufacturing industry, a technology-intensive field, where products need to operate stably in extreme underground mining environments like high temperature, high pressure, and high corrosion. Thus, there are very high demands for product quality and reliability. Moreover, oil and gas extraction projects have a high degree of continuity, and any delay or quality issue with drilling tools could lead to work stoppages, resulting in massive economic losses and potential safety hazards, making the timeliness of delivery critically important.
As a multinational enterprise with both domestic and overseas operations, Baishite works closely with large global oil service companies and must adhere to internationally high standards of quality and respond to complex and changing order demands. Its flagship products, drill rods and hydraulic expansion tools, involve complex and intricate processes covering machining, glue injection vulcanization, assembly, etc. Each link is closely interconnected, requiring high precision, stability, and coordination in the production process to ensure the products play a key role in oil and gas extraction operations.
🤔 Risks
Customer Loss: If focusing solely on product supply, it may not meet the growing rental and after-sales needs of customers. In the face of complex and changing extraction projects, customers may likely turn to competitors that can provide comprehensive service. For example, if tools malfunction at the extraction site, if Baishite cannot respond promptly for repairs, customers will inevitably choose other suppliers with better service to maintain project progress, leading to a gradual loss of customer resources.
Market Share Shrinkage: There is intense competition with product homogeneity, and relying solely on product performance is insufficient to stand out. Competitors are expanding their service boundaries, and if Baishite remains stagnant, its unique selling points will continue to diminish. As new companies impact the market with innovative service models, the existing market share will gradually be eroded, tightening survival space.
Profit Growth Constraints: On one hand, fluctuations in raw material prices and rising production costs squeeze product profit margins; on the other hand, missing out on new profit channels such as rentals and after-sales results in sluggish revenue growth and long-term developmental constraints, making it difficult to cope with financial pressures brought about by market changes.
Decreased Industry Adaptability Risk: The industry is moving towards service-oriented manufacturing and places increasing emphasis on the integration of technology and services, such as the digital operation and maintenance of equipment. If it does not transform, Baishite will become disconnected from industry trends, lagging in technology Application and service innovation, losing market voice, and eventually becoming marginalized.
💪 Transformation Decision
Given the severe situation and potential risks in the industry, Baishite has resolutely decided to transition from a **product-oriented to a service-oriented** manufacturing industry. The aim is to deeply embed rental and after-sales services based on quality products in the next 3-5 years, comprehensively align with customer needs, increase customer satisfaction and loyalty, reshape the competitive advantage of the enterprise, broaden profit channels, and achieve sustainable development.
🚀 Introduction of MES
The traditional management model has numerous problems, planning and material processes lack MRP operation, communication is chaotic, and daily accounts are unclear, leading to invalid production plans; production plans and progress management rely on manual work, which is inefficient and difficult to track; management modules such as tools and equipment, parts and traceability, standard working hours and performance, engineering changes and BOM are all fraught with issues.
To break the information silos, achieve production visualization, transparency, and intelligence, Baishite is determined to introduce the MES system, accurately optimize business processes, and collaborate efficiently among all links to lay a solid foundation for transformation.
3. Current Situation and Challenges
Current Situation of Customer Business and Its Impact
Planning and Material Management
Current Situation: Baishite has not been able to effectively run material requirements planning (MRP) in the U9 system, with the engineering manager doubling as the PMC position, sales demands conveyed sporadically via phone and WeChat, and no daily accounts being settled.
Impact: Unable to accurately formulate production plans, prone to material backlog or shortages, increasing inventory costs and capital occupation costs, affecting delivery times, ultimately leading to breach of contract risks.
Production Planning and Progress Management
Current Situation: Relies on manual tables to arrange production plans and record progress, manually inputting data after onsite supervision, and tracking ongoing production relies solely on process cards, lacking a systematic ledger management.
Impact: The efficiency of manual scheduling and progress recording is low, difficult to respond swiftly to order changes and market demands, leading to production delays, increasing the likelihood of overdue product deliveries, decreasing customer satisfaction, and damaging the company's reputation.
Tool and Equipment Management
Current Situation: Tools, measuring instruments, and molds remain at the basic inventory management level, and equipment in the U9 system only maintains basic ledgers without covering all lifecycle management stages for procurement requests, maintenance, repairs, etc.
Impact: The absence of lifecycle management means that equipment failures and tool wear cannot be prevented or addressed in a timely manner, impacting production efficiency and product quality, increasing production costs and quality risks, potentially leading to a rise in non-compliance rates.
Parts and Traceability Management
Current Situation: Relies on serial number management for parts traceability, and efficiency regarding completion report submission in the production process is low, making it difficult to trace.
Impact: Unable to effectively trace across the entire process, making it impossible to quickly locate the root cause when quality issues arise, increasing quality risks and customer complaint rates, affecting the company's market competitiveness, and potentially leading to customer loss.
Standard Working Hour and Performance Management
A standard working hours system has not been established, and management cannot accurately assess worker performance and conduct capacity analysis.
It is difficult to scientifically assess employee performance and capacity, challenging to motivate employees to improve production efficiency, detrimental to production process optimization and cost control, leading to increased labor costs and low production efficiency.
Engineering Changes and BOM Management
Assembly processes frequently require BOM changes due to changing demands, and the engineering department faces a complex and cumbersome process to remake the BOM.
The BOM change process is complicated, easily leading to production chaos, increased material waste, and prolonged production cycles, affecting product quality stability, increasing production costs, and the possibility of delivery delays.
🤯 The root of these problems lies in the inefficiency of the traditional management model and the lack of digital technology application.
Traditional management methods overly rely on manual operations and paper records, making information transmission slow, inaccurate, and difficult to achieve real-time data sharing and analysis.
Only by leveraging digital means, such as introducing advanced MES systems, can the information silos be broken, achieving visualization, transparency, and smart management of the production process, precisely optimizing and coordinating various business links, effectively resolving the aforementioned issues, enhancing Baishite’s core competitiveness, meeting the industry's stringent requirements, and ensuring the company’s continued development amidst fierce market competition.
4. Project Blueprint (Goals)
Customer Strategic Goals:
Complete the transformation from a product-oriented to a service-oriented manufacturing industry within the next 3 to 5 years, providing rental and after-sales services based on products to improve customer satisfaction and, in turn, enhance customer loyalty.
Customer Operational Goals:
Cost Goals:
Achieve dual cost accounting, namely: actual cost (for accounting purposes), standard cost (for management purposes), cost optimization and management
Quality Goals:
Achieve SN-level inspection of the production process to achieve full-process traceability of quality
Delivery Goals:
Achieve transparent production in the workshop, real-time display of production progress and abnormal situations, enhance internal coordination efficiency, and shorten the product production cycle
Project Goals:
Cost Goals:
By achieving coordinated production, supply, and sales while ensuring visible and transparent production and full-process traceability, improve operational optimization, increase production efficiency, and reduce costs to improve the management level of each workshop and department of Baishite Tool Factory.
Quality Goals:
From the single task issued to inventory to product shipment, establish monitoring of product quality and production efficiency, implement lean production, and realize refined management of the workshop.
Delivery Goals:
Resolve issues of mutual independence and lack of data sharing between production planning, BOM manufacturing, process route, production process management, production progress management, quality management, and material management, enhance inter-departmental coordination, and solidify the business foundation.
System Architecture:
The first phase of the project went live in September 2023, focusing on urgent issues such as Baishite's production planning management, process management, quality management, barcode management, and full-process traceability of products.
For example, by leveraging U9 integrated production orders and schedule optimization, the production process is ensured through assembly code binding, production process inspection and external inspections guarantee quality, utilizing material batches/serial numbers for traceability, and automatically generating daily production reports to assist decision-making—all aimed at laying the digital management foundation for the enterprise.
The second phase of the project is planned based on the results of the first phase and the continuous development needs of the enterprise.
The introduction of the equipment management module is due to the shortcomings in tool and equipment management exposed in the first phase; the lack of lifecycle management impacts production efficiency and quality. This module can improve the operational status of equipment.
The cost management module addresses rising costs due to production issues in the early stages and can provide accurate accounting and analysis of cost components, helping the enterprise to reduce costs and increase efficiency.
The supply chain management module addresses collaborative issues across multinational business supply chains and can optimize processes from procurement to delivery, enhancing the enterprise's market responsiveness.
Integrating this foundational data with Baishite's PLM system and the U9 system will achieve data consistency and eliminate data silos.
Providing light consulting solutions will help Baishite enhance its new factory planning management capabilities, thereby improving production, supply, and sales coordination efficiency as well as company operational management capabilities.
5. Specific Solutions
No. | Core Business Process | Decomposed Process | New Cloud Solution |
|---|---|---|---|
1 | Cost | Work hour data collection | Process timing professional version |
2 | Work hour data application | ||
3 | After-sales management | After-sales management solution | |
4 | Quality | SN management | SN management professional version |
5 | Non-conformity control | Production process inspection professional version | |
6 | Pending inspection list | ||
7 | Quality inspection report file management | ||
8 | Delivery | Workshop-level scheduling | Workshop planning professional version |
9 | Production reporting | Production management professional version | |
10 | One code to the end | One code to the end |
5.1 Cost Management Solution
5.1.1 Actual Work Hour Statistics
Pain Point Analysis:
Standard work hours are entirely roughly estimated by the process personnel, lacking actual work hour data to support standard work hour updates; each month the work hour reports provided to the finance and HR departments require a large amount of time, and data accuracy is questionable.
Solution Details:
Solution Summary:
Automatic Work Hour Statistics: The system will automatically start the timer when the production task begins, pausing the timer synchronously when the task is paused and resuming it when the task continues until the work report for completion is automatically stopped.
Flexible Multi-person Start Mode: The system supports single or multiple person collaboration in processing the same product. At the start of the production task, it can choose to have either one or multiple people participate depending on production needs, and the system will record each one's timing data separately.
Equipment Selection and Timing: To adapt to a situation where one person operates multiple devices, during the start, the production personnel first select themselves, then choose the equipment to be used, and finally select the starting SN. Once the required operating SN is confirmed, the system will automatically begin timing for that device and allow switching to other devices within the production task as needed, recording the usage time for each equipment separately.
Continuity and Flexibility of Shifts: The system allows personnel from the next shift to choose to continue working on products not finished from the previous shift, or to start a new processing flow with another device under the same task based on the real situation.
One-click Report Export Function: The system provides a one-click export function to enable management personnel to quickly obtain detailed reports of actual work hour data, facilitating production monitoring, cost accounting, and performance evaluation.
Value of the Solution:
Collecting the genuine processing time during the production process provides data support for cost management and performance management.
Advantages of the Solution:
Covers various scenarios in Baishite's daily production reporting and timing, reducing the difficulty of operations for production personnel and ensuring the ease and completeness of work hour data collection.
How to Implement the Solution:
What data needs to be collected:
Each product's actual processing time for each self-made process, as well as the work hour proportion of each participant.
How to collect data:
1. Specify the personnel involved in processing at each start or continuation, and automatically generate actual processing times for each work report upon completion;
2. For a single start, if multiple SNs are reported in bulk upon completion, it will generate multiple work report records, and the processing time for each SN work report record = total processing time / total number of reports.
Solution Implementation Results:
Qualitative Description:
Through the collection and application of actual work hour data for all production tasks, data support is provided for finance personnel to calculate labor costs and analyze capacity, serving as a basis for performance management and assessment by HR personnel and providing a foundation for the accuracy of standard work hours and process improvement.
Quantitative Description:
1. The MES system mandates standardized procedures for production task work hour data collection, avoiding over 95% of erroneous operations leading to abnormal data collection, achieving a data collection accuracy of 90%;
2. Monthly statistical workings for work hours see efficiency improvements of 300%.
Work Reporting Records
Work Reporting Record Details
Work Hour Record Table
5.2 Quality Management Solution
5.2.1 End-to-End Traceability of SN
Pain Point Analysis:
Baishite operates in the oil and natural gas extraction tool manufacturing industry and the need for efficient production under large-scale orders requires "batch reporting" to increase production data entry efficiency;
Due to the complexity of its product processes and customer customization demands, cost control and ensuring timely delivery require addressing the difficulties in modifying SN products in production;
SN products refer to products identified by unique serial numbers for precise tracking management, and once an SN is generated, allowing deletion is necessary; otherwise, it will result in data discrepancies across production management, quality traceability, inventory statistics, and impact the accuracy of subsequent plans.
To maintain quality control over outsourced products within international dealings and collaborate with international partners without disrupting production pace, once SN products are used, they need to be supported for re-inventory; otherwise, obstacles in process continuity and quality traceability could arise during rework or additional processing.
Solution Details:
Solution Summary:
Further development based on the original SN serial number management solution:
Batch Reporting:
Develop a function allowing users to input serial numbers in batch and report them all at once to improve production data entry efficiency.
In-process Inventory:
Establish a serial number management process for in-process items so semi-finished goods during the production process can also be tracked and managed by the system.
Production Outsourcing and Receipt Inspection:
Enhance serial number management for production outsourcing to ensure outsourced products are accurately tracked.
Integrate outsourced receipt inspection processes to ensure received outsourced products meet quality standards and correctly record serial number information.
Serial Number Deletion:
Provide a secure and validated serial number deletion function to handle exceptional situations during production, such as product scrapping.
Serial Number Re-inventory:
If a serial number is consumed in a production order, and the product needs to be re-inventoried (e.g., rework or additional processing), the system should allow these serial numbers to be recorded again through other inventory processes.
Value of the Solution:
Closely managing daily serial number production tasks ensures basis for full-process traceability and subsequent after-sales management.
Advantages of the Solution:
The main process is connected, and the SN functionality is complete.
How to Implement the Solution:
What data needs to be collected:
1. Rapid positioning of SN states from production preparation to production storage;
2. Full-process traceability of SN.
How to collect data:
SN-related task handling or cancellation updates the SN material number, material name, current process, status, and other information in real time.
Solution Implementation Results:
Qualitative Description:
The MES system’s closed-loop management of SN production tasks has laid the groundwork for the development of interfaces connecting SN material disassembly and inventory processes with the U9 system.
Quantitative Description:
Completeness of data regarding SN, inventory, production, and inspection has increased by 90%.
In-process SN Inventory
Unused SN Deletion
Multiple uses of the same SN from production orders
5.2.2 Production Process Inspection
Pain Point Analysis:
1. Inspectors are unclear about how many pending inspection tasks are in production, making it impossible to prepare reasonably in advance. Often they receive several inspection tasks unexpectedly just before the end of their shifts, leading to task backlog;
2. Production personnel communicate with inspectors offline for inspection task handling and cannot assess the efficiency of those tasks;
3. Inspection records and non-conformity handling records are managed offline and later entered manually into Excel, making data statistical analysis and traceability difficult;
4. After inspection tasks for flaw detection and final inspection are completed, inspectors manually input inspection data into report templates, then print flaw detection and final inspection reports, leading to inefficiency and making traceability difficult.
Solution Details:
Solution Summary:
Develop upon the existing 'Production Process Inspection' functions:
1. Create a 'Pending Inspection List' form; when designated inspection personnel start working, the system automatically generates a pending inspection list. Upon completion, they can update the status of pending inspection tasks, allowing inspectors to jump directly to production inspection tasks for handling;
2. The system will automatically generate and push inspection tasks to inspectors, reducing communication costs and enabling analysis of inspection task performance;
3. Once inspection tasks are completed, the system will create inspection records and non-conformity handling records automatically, providing references for quality traceability, problem analysis, and improvement;
4. Pre-set templates for various reports in the system. Once inspection tasks are completed, quality inspectors can print flaw detection or final inspection reports with one click.
Value of the Solution:
Standardized processes streamline the daily operations of production and inspection personnel, with detailed recording of self-inspections, special inspections, non-conformity handling, flaw detection reports, and final inspection reports, ensuring complete traceability of quality.
Advantages of the Solution:
The 'Pending Inspection List' functionality enables inspectors to plan and arrange work in advance, avoiding unallocated early tasks and deposit situations later; simultaneously using the one-click printing function for 'Flaw Detection Report' and 'Final Inspection Report' reduces duplicated data entry, improving efficiency.
How to Implement the Solution:
What data needs to be collected:
Production inspection records, receipt inspection records (outsourced), production non-conformity handling forms, receipt inspection non-conforming product handling forms (outsourced), flaw detection reports, and final inspection reports.
How to collect data:
1. The system records automatically after inspectors handle production inspection tasks;
2. The system records automatically after inspectors handle receipt inspection tasks;
3. The system records automatically after completing non-conformity processing forms;
4. The system records automatically after receipt of handling forms for non-conforming products;
5. Inspectors can quickly create and save reports upon completion of production inspection forms, generating report data.
Solution Implementation Results:
Qualitative Description:
Through the development of the pending inspection list and flaw detection reports, the implementation achieved a closed-loop management system for production process inspections before, during, and after tasks, saving substantial communication costs and preventing repetitive manual data entry, greatly improving inspectors’ work efficiency and providing data foundations for quality traceability and process improvement.
Quantitative Description:
The efficiency of generating flaw detection and final inspection reports has improved by 50%, with completeness and accuracy of inspection data increasing by 20%.
Pending Inspection List
5.2.3 Non-conforming Product Management
Pain Point Analysis:
1. Non-conforming product handling forms circulate in paper format, leading to delayed information feedback and untimely abnormal handling;
2. Non-conforming handling requires offline verification involving the process department, manufacturing department, and quality department, consuming extensive time.
Solution Details:
Solution Summary:
1. During production reporting, if there are any non-conforming products, a second confirmation will occur to avoid inaccurate non-conforming data due to erroneous production personnel operations;
2. After generating pending non-conforming product tasks, quality inspectors will assess non-conformance based on drawings and factory conditions, making preliminary determinations, which include concession acceptance, scrapping, rework, and repair methods, initiating a sign-off process for re-working non-conforming products;
3. Reviewers or department heads from the process department, manufacturing department, and quality department will conduct sign-off reviews via WEB or APP, and once all approvals are granted, the resolution for non-conforming products will take effect.
Value of the Solution:
1. Optimizes information transmission methods: realizes electronic transfer of non-conforming product handling, production orders, blueprints, and other information, ensuring accuracy and timeliness of information delivery, improving efficiency in determining non-conformance;
2. Continuous improvement: details regarding the reasons for non-conforming handling, judgments, processing methods will be recorded in the MES system, supporting periodic quality analysis for in-depth discussion and improvement of quality management systems.
Advantages of the Solution:
1. Through standardized operational interfaces and processes, employees can operate and inspect according to unified standards, reducing the impact of human intervention and subjective judgment, improving the normativity and consistency of work;
2. The MES system has traceability capabilities, enabling swift identification of root causes for quality issues, helping the enterprise implement targeted measures, aiding in lowering non-conforming rates, reducing waste, and decreasing costs.
How to Implement the Solution:
What data needs to be collected:
Production inspection records, receipt inspection records (outsourced), pending non-conforming products, production non-conformity handling forms, receipt inspection non-conformity handling forms (outsourced)
How to collect data:
1. The system auto-records post self-inspection reports by production personnel;
2. The system auto-records post-handling of production inspection tasks by inspectors;
3. The system auto-records after the completion of outsourced receipt inspection tasks;
4. The system auto-records after initiating preliminary examination sign-off processes for pending non-conforming products;
5. The system auto-records once personnel from process/manufacturing/quality have concluded the handling forms for non-conforming products.
Solution Implementation Results:
Qualitative Description:
Achieving secondary quality assurance through sign-off processes prevents erroneous handling due to individual inspector judgment errors. The approval process supports professional advice for the quality results and personnel handling non-conforming products, effectively improving handling efficiency and product quality.
The MES system keys in all non-conforming product activities into a secure database, supporting rapid searches, benefiting in problem analysis, responsibility traceability, and continuous improvement.
Quantitative Description:
Efficiency in handling non-conforming products improved by 40%, with completeness and accuracy of non-conforming handling data increased by 30%.
Solution-associated items (attach data package link)
Non-conforming Reporting Prompt
Pending Non-conforming Products
Non-conforming Product Handling Form
5.3 Delivery Solution
5.3.1 Workshop Planning
Pain Point Analysis:
1. Using Excel for offline scheduling, the process is complex and lacks change logs;
2. The feasibility of the schedule is low, creating a disconnect with offline production leading to low plan fulfillment rates;
3. It is difficult to trace real-time production site statuses, with challenges in adjustments for insertion or urgent orders.
Solution Details:
Solution Summary:
1. By comprehensively considering production orders and the availability of equipment resources, realize reasonable arrangement and optimization of production tasks;
2. Connect scheduling data and production execution data to view execution status in real-time, allowing quick effective adjustments for abnormal work orders;
3. Provide various functions to assist planners with efficiently completing urgent or insertion tasks.
Value of the Solution:
Increases equipment utilization and production scheduling efficiency, saving time and labor costs; improving the feasibility of the production plan will enhance plan fulfillment rates and reduce order delays.
Advantages of the Solution:
1. System scheduling reduces dependence on planners' capabilities to a degree;
2. Real-time tracking of production site execution improves the response efficiency for abnormal tasks or urgent insertion cases.
How to Implement the Solution:
What data needs to be collected:
Material resource capacity comparison table, planned production quantities and delivery dates for production orders, scheduling parameters
How to collect data:
1. Manually maintain or import the material resource capacity comparison table based on technical data;
2. Synchronize MES production orders upon approving U9 production orders;
3. Configure default scheduling parameters based on Baishite's actual situation.
Solution Implementation Results:
Qualitative Description:
Greatly reduces the workload of planners and increases equipment utilization; the feasibility of production plans has significantly improved, with a marked decrease in overdue production orders.
Quantitative Description:
The production cycle of finished products decreases by 15%; inventory accuracy improves by 20%.
Solution-associated items (attach data package link)
Pending Scheduling - Start Scheduling
Current Scheduling - Resource Adjustment/Scheduling Dispatch
5.3.2 Production Management
Pain Point Analysis:
1. Using paper-based production records to manage production processes requires each SN to print a separate production record form, which may be damaged or lost, undermining the integrity and accuracy of production process data collection;
2. The production cycles of components are generally lengthy, making real-time monitoring of ongoing production tasks difficult, with slow response to abnormal production tasks;
3. All production process data is recorded offline, making capacity statistics and responsibility traceability relatively challenging.
Solution Details:
Solution Summary:
1. Production reporting via APP supports automatic validation of self-inspection aims;
2. In-process management updates material numbers, material names, current processes, and statuses of in-process items in real time to promptly locate the current processing status of each SN;
3. Utilize employee capacity tables and overdue statistics to quickly analyze capacity and overdue production information.
Value of the Solution:
Enables real-time data collection of production processes via production task reporting, allowing management to quickly monitor and address abnormal situations;
Completeness and accuracy in capturing production process data provide data support for analyzing production anomalies and improving the production process.
Advantages of the Solution:
Replacing paper-based record forms with APP-based reporting standardizes the operations of production personnel, enhancing reporting efficiency and data completeness;
Enables planners to see production task execution status themselves, reducing communication costs.
How to Implement the Solution:
What data needs to be collected:
Reporting records, overall progress and overdue statuses of production orders
How to collect data:
1. Automatically generates reporting records post-production task reporting;
2. The system will automatically update the 'overall progress' and 'planned completion time' of the production order list;
3. Each overdue production task is updated for each overdue reason in the tracking statistics reports.
Solution Implementation Results:
Qualitative Description:
By integrating data with the U9 system, achieving coordinated production and sales, along with refined management of workshops.
Quantitative Description:
All data from the production process now has informational management, with data integrity increased by 90%, and departmental collaboration efficiency improved by 30%.
Solution-associated items (attach data package link)
Production Order List
Employee Capacity Table
5.3.3 One Code to the End
Pain Point Analysis:
1. Baishite's process coding generation rule is 'number + process', for example, 020 turning, 030 turning, resulting in each production staff receiving multiple production tasks, requiring them more time to locate production tasks when reporting;
2. Daily material issue, production task, production inspection task, inventory tasks consume significant amounts of time for business personnel.
Solution Details:
Solution Summary:
1. Print material labels recognizable by the MES system during batch material or SN material inventory in the U9 system;
2. After MES workshop planning dispatch, warehouse personnel can quickly handle material issue tasks by scanning production order one code to the end labels and material issue labels in sequence using a PDA;
3. Production personnel can quickly locate production tasks by scanning production order one code to the end labels to begin, pause, continue, and complete operations;
4. Quality inspectors can quickly locate inspection tasks and pending non-conforming products for handling by scanning the production order one code to the end labels;
5. Warehouse personnel can quickly locate outsourced material issue tasks, outsourced inventory tasks, pending inspection tasks, outsourced inspection inventory tasks, and return tasks to be processed by scanning production order one code to the end labels;
6. Quality inspectors can quickly locate outsourced receipt inspection tasks for handling by scanning production order one code to the end labels;
7. Warehouse personnel can quickly locate production inventory and scrapping processes via scanning production order one code to the end labels;
8. Print material labels during production inventory simultaneously, along with the physical goods;
9. Query and reprint material labels for goods already in stock;
10. Management personnel can scan to query the current progress of production tasks.
Value of the Solution:
Complete traceability management via scanning throughout the production process, enabling production personnel to quickly carry out current tasks with one scan, while giving management personnel a quick overview of the current production progress.
Advantages of the Solution:
Increases efficiency in task handling of business personnel and reduces erroneous data.
How to Implement the Solution:
What data needs to be collected:
Material labels, production order one code to the end labels (SN labels, transfer card labels)
How to collect data:
1. Print material labels during U9 raw materials procurement or other inventory;
2. Print material labels during U9 parts disassembly inventory;
3. Print production order one code to the end labels when MES planning is dispatched; that is, SN production orders print SN labels, while batch production orders print transfer card labels;
4. Print material labels during the last production process or outsourced inventory.
Solution Implementation Results:
Qualitative Description:
Increases efficiency in inventory task handling by warehouse personnel, production task handling by production personnel, and quality inspection task handling by quality inspectors, thereby improving the accuracy of inventory data.
Quantitative Description:
1. Efficiency of handling inventory, production, and inspection tasks increased by 50%;
2. Accuracy of inventory data improved by 20%.
U9 Procurement Inventory Material Label
MES Production Inventory Material Label
Batch Production Order One Code to the End Label
Serial Number Production Order One Code to the End Label
6. Project Effect Summary
Project Effect Introduction:
Cost:
Through the work hour statistics feature capturing actual work hours, supporting the HR department for performance management evaluations, average performance of production personnel has improved by 40%.
Quality:
1. The quality department has achieved fully digitalized management of comprehensive data, including quality plans, pending inspection lists, inspection records, non-conformity handling forms, flaw detection reports, and final inspection reports, with daily work efficiency for quality inspectors increasing by more than 40%;
2. Real-time tracking of the latest dynamics and comprehensive inventory, production, and inspection historical records of SN components.
Delivery:
The MES system provides real-time and accurate production process data, enables refined management of workshop production, reduces the production cycle of components by 15%, and significantly decreases overdue order situations.
