Measuring the Elusive 6th Sense

pic_6formulaAs we’ve explained in previous posts, LumaSense is on a mission to help companies awaken their industrial  “6th Sense” — a state of process-specific hyper-awareness  – by harnessing sensing solutions and Big Data analytics. With an estimated
$1 Trillion lost every year to global waste and inefficiency, the opportunity for economic gains is astounding.

But how to capture those potential gains, which can seem as elusive as Houdini?  That brings us to this week’s post…

The LS6 PE Index – A 6 factor formula for process efficiency

LumaSense has developed an innovative approach to help companies measure process efficiency and explore ways to improve it. Our industry-specific 6 factor formula for process efficiency offers the potential for immediate gains and sustainable efficiencies across the long haul, helping customers achieve three distinct and verifiable levels of predictable efficiency improvement.

The LS6 PE Index is calculated along the same lines I employed during my years as an engineer in nuclear power plants and working with the US Nuclear Navy, where even the most minute inefficiencies are simply intolerable – and in fact, life-threatening.

Here’s a quick summary of the six factors that make up our LS6 PE Index:

 Pη – Process efficiency factor

A factor determined by multiplicative means of 6 various factors evaluating the general waste generation and inefficiency of a given “process.” The efficiency of any given process can be broken down into an evaluation of material input usage, power usage, labor usage, expected process yield, amount of scrap generated, and if that scrap can be reworked to something useful.

  Pc – Power usage factor

The amount of power consumed for a given rating or output compared to theoretical/ideal power consumption for that particular rating or output.

S – Scrap generation unit

Amount of process waste or “scrap” generated during the manufacturing process. Can be defined in terms of per batch, per shift, per day, per run, etc.

L – Labor utilization factor

Based on percentage of labor used above what the process is designed for at a given capacity run.

Rm – Raw material usage factor

A comparison factor evaluating the amount of raw material (including recyclable material) used for a particular process for a given/expected output or capacity as compared to the ideal or theoretical amount.

Rw – Rework factor

This value is a variant of Rolled Throughput Yield based on a calculated variable on the amount of scrap that can be reworked successfully.

Ƭ – Throughput variable

Calculated variable dependent upon the First Pass Yield and Rolled Throughput Yield. A weighting factor is assigned to each variable, dependent upon the process being evaluated, how important each variable is and costs for that particular process.

Every industry and operational environment is unique, so we work hand-in-hand with customers to define how the LS6 PE Index can be applied in real-world conditions.

By implementing the LS6 PE Index, companies can evaluate the current state of their manufacturing and operational processes. Equipped with these insights, they can then explore how sensor-driven solutions and industrial analytics software can help improve their processes and significantly reduce productivity losses. After solutions have been implemented, the LS6 PE Index is recalculated to determine what efficiencies and waste reductions have been achieved.

In our next Sensory Overload blog post, I’ll explain how customers can take six simple steps to awaken their 6th Sense – and make process efficiencies disappear like a rabbit in Houdini’s hat.

How does the LS6 PE Index add up for your company’s operations?

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