The rising cost of raw materials is no secret. But what’s even more expensive? Raw materials that go to waste, ending up as scrap. So, how can you minimize production waste? By leveraging the Industrial Internet of Things (IIoT). With IIoT, you can accurately measure how much material is wasted and identify the key factors driving this loss. More importantly, you’ll gain actionable insights to reduce waste and improve efficiency.
Many production managers place too much emphasis on maximizing output, often overlooking the importance of cost control. Efficient production isn’t just about quantity—it’s about balancing output with managing costs. Raw materials represent one of the largest cost components of any manufactured product. When we talk about "lost raw materials," we’re addressing two primary categories:
Every production process inevitably generates residual waste—material scraps that aren't used in the final product. For instance, cutting processes often produce leftover materials, while packaging operations can also result in excess waste.
Products that fail to meet specifications during production are classified as scrap. While some scrap materials can be reworked, this isn't always feasible.
With raw material prices on the rise, organizations are increasingly focused on minimizing the cost of waste and losses. These expenses go far beyond the value of the materials themselves. For instance, they include the cost of halted production, the energy required to restart operations, the time spent reworking defective products, and the resources needed to process waste materials. By addressing these inefficiencies, businesses can significantly reduce costs while improving overall efficiency.
Waste and defects often stem from inefficiencies in production processes. A common scenario involves halting a production line due to machine errors or the need to replace components. Restarting machines can be time-consuming, especially when operators are unsure which parameters influence production outcomes or when there are simply too many variables to manage.
While there are several ways to address waste—such as providing better operator training or revisiting raw material purchasing policies—the most effective solution lies in analyzing the process itself. To do this, reliable data is essential. This data can be collected by implementing sensors and leveraging the Industrial Internet of Things (IIoT).
IIoT enables you to connect production equipment, gather precise machine data, and monitor and analyze that information to minimize waste and defects. Its true value lies in delivering actionable insights—practical, data-driven recommendations you can use to optimize processes, such as improving raw material management or fine-tuning machine performance. By adopting IIoT, you can transform inefficiencies into opportunities for growth and sustainability.
The return on investment for IIoT is clear and compelling. Take, for instance, a customer who optimized their galvanization process using data from IIoT sensors. By making a few targeted adjustments to machine settings, they achieved a 4% reduction in zinc consumption, the primary material used for galvanization. This improvement not only lowered material costs but also significantly reduced waste.
While a 4% reduction may not sound groundbreaking at first, the speed at which this result was achieved highlights the value of IIoT-driven insights. Addressing these "low-hanging fruit" opportunities is just the beginning. With time, the expertise of production teams can build on these initial gains, unlocking even greater ROI and long-term efficiencies.
Minimizing waste and downtime with IIoT has never been easier. Modern IIoT platforms can seamlessly integrate with your production equipment, including legacy systems, without the need for expensive machinery upgrades. These platforms communicate effortlessly with machine protocols, enhancing the functionality of your existing equipment.
The 9A Connected Factory & Insights solution from 9altitudes delivers rapid and measurable results—something many IIoT packages fail to achieve. Backed by deep industry expertise and a thorough understanding of manufacturing complexities, this solution is designed to address the unique challenges faced by manufacturers.
Curious about IIoT? Get in touch with us to learn more.w!
Digital business transformation is what we do. Making sure organizations are ready to deliver for the end customer of today and those of tomorrow. Thanks to our industry expertise, we are able to combine speed and quality into your digital transformation journey.
In this e-book, you will learn how an IIoT solution can help your manufacturing department address challenges such as operational efficiency, flexibility, product quality and sustainability
This e-book aims to provide the insights needed to achieve long-term success with Product Lifecycle Management (PLM)
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