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IIoT and ROI: Two Acronyms that Finally Come Together
The C-suite has become more aware of how the IIoT can drive strategy and produce real ROI. However, although IIoT technologies and machine learning are the major trends in the global manufacturing industry, most effort is geared towards improving functionality and intelligence. Financial benefits, such as ROI, which are what mean the most to business owners, are rarely talked about.
KPMG, a distinguished global firm providing audit, tax, and advisory services, discovered that the capacity utilization (UT) of one of their customers was too low, resulting in a long production cycle, a low order fill rate, and high overtime costs. KPMG decided to help the client resolve its operational bottleneck from the perspective of overall equipment effectiveness (OEE), which is closely related to UT. KPMG collaborated with Moxa to make use of the IIoT to enhance visualization of data management. After 18 months of implementation and testing, the customer’s OEE increased from 70% to 83%. Not only was the production cycle shortened, overtime costs were also reduced considerably.
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