{"id":8395,"date":"2020-05-19T09:15:14","date_gmt":"2020-05-19T16:15:14","guid":{"rendered":"https:\/\/blog-prod.qad.com\/blog\/?p=8395"},"modified":"2020-05-19T09:15:14","modified_gmt":"2020-05-19T16:15:14","slug":"actionable-insights-equipment-analysis","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2020\/05\/actionable-insights-equipment-analysis","title":{"rendered":"Actionable Insights: Equipment Analysis"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;8397&#8243; img_size=&#8221;full&#8221;][vc_column_text]<i><span style=\"font-weight: 400;\">In our previous <\/span><\/i><a href=\"https:\/\/www.qad.com\/blog\/2020\/03\/actionable-insights-operating-expenses\/\"><i><span style=\"font-weight: 400;\">Actionable Insights blog<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">, we discussed the Operating Expenses Action Center. Next, we will provide an overview of the Equipment Analysis Action Center as well as the associated key performance indicators (KPIs).<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Many manufacturing companies are dependent on equipment and machinery for their production process, so it makes sense to keep close tabs on the health of that equipment. The Equipment Analysis Action Center allows users to <\/span><a href=\"https:\/\/www.qad.com\/blog\/2019\/02\/metrics-that-matter-asset-utilization\/\"><span style=\"font-weight: 400;\">measure and track asset utilization<\/span><\/a><span style=\"font-weight: 400;\">, and analyze failures and downtime to help identify common causes or potential problems such as faulty replacement parts or inadequate maintenance. Knowing that the critical equipment is in the best possible condition helps to ensure that the company is effectively managing assets and can stay on schedule to make on-time shipments. By sticking to the production schedule, the company will enjoy more consistently accurate revenue predictions and happier customers.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">KPIs for Effective Equipment Analysis<\/span><\/h2>\n<p><a href=\"https:\/\/www.qad.com\/blog\/2019\/07\/actionable-insights-qad-action-centers-overview\/\"><span style=\"font-weight: 400;\">QAD Action Centers<\/span><\/a><span style=\"font-weight: 400;\"> provide analytics to help both managers and users monitor metrics and KPIs. KPI highlights for the Equipment Analysis Action Center include:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Top Percentage of Equipment with Failures<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is a pie chart showing the top pieces of equipment that had failures. Identifying the most fragile machinery can lead to more frequent and in-depth preventive maintenance designed to keep the machine in peak operating condition. It can also alert schedulers to look for alternative routings for critical orders and help production management determine the best replacement and upgrade schedule for equipment when it comes time for capital budgeting.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Percentage of Failures by Equipment Type<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Like the above, this graphic is a pie chart that identifies equipment types with the highest failure rates. Knowing that one type of equipment is prone to failure can lead to more frequent preventive maintenance. Schedulers can also ensure they leave adequate time open in the work center or equipment group to allow for downtime without affecting the schedule. Management may want to reevaluate their equipment choices when it comes time to replace or upgrade the most failure-prone equipment, or plan to budget for more capacity to ensure the equipment doesn\u2019t become a bottleneck.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Total Hours Down by Equipment Type by Reasons<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This bar chart shows the total downtime by equipment type, with detail by reason code. This helps the maintenance team focus on the equipment type that has the largest impact on schedules or costs, and to address the reasons that are primary causes. By addressing downtime causes this way, the team\u2019s effort will have the greatest impact in the short term, and they can continue working on high priorities over time to smooth out operations and reduce overall downtime.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Total Hours Down by Equipment Failure<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This bar chart shows the downtime by individual pieces of equipment. It displays total hours with detail by failure type, allowing the preventive maintenance team to address the reasons with the biggest impact. It may also identify preventive maintenance protocols that are inadequate or that maintenance has not followed correctly.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Failures by Equipment Type<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This shows the types of failures by equipment type, allowing the user to identify problem areas with specific pieces or types of equipment. This may lead to changes in preventive maintenance protocols, better operator or setup person training, better quality replacement parts or equipment replacement depending on the causes and potential solutions.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_single_image image=&#8221;8396&#8243; img_size=&#8221;full&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2><span style=\"font-weight: 400;\">The Importance of the Equipment Analysis Action Center<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Since machinery and equipment are so critical, it is in every company\u2019s best interest to ensure the equipment is well-maintained and operational when needed, using <\/span><a href=\"https:\/\/www.qad.com\/blog\/2019\/02\/metrics-that-matter-asset-utilization\/\"><span style=\"font-weight: 400;\">best practices for equipment utilization<\/span><\/a><span style=\"font-weight: 400;\"> when possible. Identifying problems with equipment may lead to changes in preventive maintenance protocols, better training, equipment replacement or other remedies. The important point is that the company has the information necessary to prioritize its efforts in areas with the largest impact on costs and schedule\u2014and thus, margins and customer satisfaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Manufacturers today strive to become adaptive and respond to changes in customer demand quickly, so having the flexibility to launch work orders as needed can be critical. Equipment must be ready to complete assigned operations, and that means minimizing unplanned downtime. Understanding potential equipment problems is crucial to this initiative. <\/span><a href=\"https:\/\/www.qad.com\/solutions\/manufacturing-erp\/data-sheet\/qad-enterprise-asset-management-data-sheet\"><span style=\"font-weight: 400;\">QAD Enterprise Asset Management<\/span><\/a><span style=\"font-weight: 400;\"> is a valuable tool for managing maintenance and downtime, and this action center provides the necessary insights for effective action. Further, <\/span><a href=\"https:\/\/www.qad.com\/cloud-erp\"><span style=\"font-weight: 400;\">QAD Adaptive ERP<\/span><\/a><span style=\"font-weight: 400;\"> helps companies respond to changing market forces quickly and cost-effectively.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Which KPIs and metrics are most important to your organization? Learn more about QAD\u2019s predefined <\/span><\/i><a href=\"https:\/\/www.qad.com\/blog\/tag\/action-center\/\"><i><span style=\"font-weight: 400;\">Action Centers<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> as well as best practices for each.<\/span><\/i>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;8397&#8243; img_size=&#8221;full&#8221;][vc_column_text]In our previous Actionable Insights blog, we discussed the Operating Expenses Action Center. Next, we will provide an overview of the Equipment Analysis Action Center as well as the associated key performance indicators (KPIs). Many manufacturing companies are dependent on equipment and machinery for their production process, so it makes sense to keep [&hellip;]<\/p>\n","protected":false},"author":90,"featured_media":8397,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[908,831,912,540,1211,1212,1213,1104,172,563,26,264],"class_list":["post-8395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-action-center","tag-actionable-insights","tag-downtime","tag-equipment","tag-equipment-analysis","tag-equipment-utilization","tag-failures","tag-insights","tag-kpis","tag-maintenance","tag-manufacturing-erp","tag-metrics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Actionable Insights: Equipment Analysis | QAD Blog<\/title>\n<meta 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