Development of a New KPI for the Economic Quantification of Six Big Losses and Its Implementation in a Cyber Physical System

Abstract

The purpose of this work is to develop a new Key Performance Indicator (KPI) that can quantify the cost of Six Big Losses developed by Nakajima and implements it in a Cyber Physical System (CPS), achieving a real-time monitorization of the KPI. This paper follows the methodology explained below. A cost model has been used to accurately develop this indicator together with the Six Big Losses description. At the same time, the machine tool has been integrated into a CPS, enhancing the real-time data acquisition, using the Industry 4.0 technologies. Once the KPI has been defined, we have developed the software that can turn these real-time data into relevant information (using Python) through the calculation of our indicator. Finally, we have carried out a case of study showing our new KPI results and comparing them to other indicators related with the Six Big Losses but in different dimensions. As a result, our research quantifies economically the Six Big Losses, enhances the detection of the bigger ones to improve them, and enlightens the importance of paying attention to different dimensions, mainly, the productive, sustainable, and economic at the same time.

Resource Overall Equipment Cost Loss indicator to assess equipment performance and product cost

“…It is defined in energy units and as a carbon footprint, and is expressed as the sum of the energy consumption associated with availability, performance, and quality. On the contrary, Cost Loss Indicator (CLI) by Morella et al (2020a) quantifies the costs associated with the six big losses during a specific period. It is defined in economic terms, and is expressed as the sum among the availability, performance, and quality cost losses.…”

“…The possibility to quickly calculate ROECL is provided by Industry 4.0 technologies. Such technologies permit acquiring data and analysing the most appropriate variables to estimate a KPI in real-time (Morella et al, 2020a). A Cyber-Physical System (CPS) is the core foundation of Industry 4.0 (Xu et al, 2018): it is a physical and engineered system whose operation is monitored, co-ordinated, controlled, and integrated by a computing and communication core (Kocsi et al, 2020).…”

“…A Cyber-Physical System (CPS) is the core foundation of Industry 4.0 (Xu et al, 2018): it is a physical and engineered system whose operation is monitored, co-ordinated, controlled, and integrated by a computing and communication core (Kocsi et al, 2020). CPS enables acquiring real-time data for making decisions that enhances the idea to create an accurate costing system (Morella et al, 2020a). It is also useful to obtain realtime data on factors such as energy or material consumption (Morella et al, 2020b).…”

Key Performance Indicators Selection through an Analytic Network Process Model for Tooling and Die Industry

“…The use of key performance indicators (KPIs) as a metric to control has been much more recurrent due to the fast growth and adaptation of companies to the concepts of Industry 4.0, which aims to access information through technological means, greatly facilitating the use of KPIs [39]. Therefore, the use of KPIs becomes a tool of great importance for management, since through its use it becomes possible to separate non-useful from useful information, offering company managers a transparent view, and possible paths on how they can improve these processes [11].…”

Analysis of Possible Reductions of Rejects in Battery Cell Production during Switch‐On and Operating Processes

“…Other approaches prove that Industry 4.0 technologies contribute to improve manufacturing systems by implementing a Cyber Physical System in a machine tool. [28] Answering the question on the hypotheses whether Industry 4.0 methods make it possible to improve rejection rates a vast majority, more than 65% of respondents, express high to full support for this question.…”