Internal Failure Rates: Gaming Equipment Manufacturing Industry

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Internal Failure Rates: Gaming Equipment Manufacturing Industry

Two recent trends in manufacturing quality control are the use of IoT and automated metrology for such. We also identified five insights regarding rejection and internal failure rates within the manufacturing industry.

Trend #1 — IoT

  • The use of IoT is one of the latest trends for quality control in manufacturing. This trend was noted by multiple sources, which included Microsoft, Manufacturing Tomorrow, Industry Wired, and Quality Magazine, among others.
  • Microsoft stated that "[m]anufacturers are increasingly turning to IoT solutions to ensure products meet quality standards."
  • IoT sensors are a specific mechanism being increasingly used for quality control in manufacturing, as they allow for "[r]eal-time monitoring [which] creates a contextually rich stream of data that provides insights into product quality, machine performance, machine yields and holds clues to solving many manufacturers’ most challenging problems."
  • A survey "found that manufacturers growing 10% a year or more are early adopters of Radio Frequency Identification (RFID) tags and the Internet of Things (IoT) sensors . . . ."
  • By using IoT, manufacturers are able to compile supply-chain data, such as "the quality of parts and products being utilized, where they came from, and how they were grown, bought, or formed." Furthermore, IoT sensors help manufacturers "collect data on product specifications and . . . can determine which products meet quality specifications and which need physical inspection."
  • Industry source Manufacturing Tomorrow explained that "Industrial Internet of Things (IIOT) technology, the cloud and Industry 4.0 practices are being used by forward-thinking organizations to facilitate improvements to their quality management systems (QMS) and enable real time collaboration and communication across quality teams and sites."
  • Manufacturers are also using IoT sensors preemptively with regard to their suppliers, as they seek "to monitor potential contributors to quality issues early and analyze the data for trends that provide actionable insights based on predictive analytics."
  • An article in Quality Magazine stated, in pertinent part, that "[i]nstead of inspecting parts as the primary quality activity, these companies inspect their suppliers’ quality and processes to circumvent downstream quality issues. Instead of waiting for a machine to wear out, companies monitor machines for symptoms of an impending problem and maintain them ahead of time to ensure high performance all the time."
  • Companies considered forerunners in capitalizing on this trend include IBM (through its software called Cognitive Visual Recognition), Tulip, and Microsoft (through its platform called Azure IoT).
  • Manufacturers considered forerunners in capitalizing on this trend include Tesla, Piramal Glass, and LG Electronics, (which "[b]y using edge processing in . . . IoT architecture . . . [was] able to decrease latency and manpower while significantly increasing process fault detection from 50% to 99.9%. The overall impact yielded a savings of $20 million per year").

Trend #2 — Automated Metrology

  • The use of automated metrology is also one of the latest trends for quality control in manufacturing.
  • This trend was noted by multiple sources, which included Quality Magazine, IQMS Manufacturing Software, and Metrology News.
  • Metrology News recently reported that "[m]anual measuring systems [are] being replaced by automated solutions."
  • A post in the IQMS Manufacturing Blog stated the following about this trend: "Manufacturers will automate quality management in 2020 to more accurately define and track major and minor non-conformances by product, prioritizing them and what action is needed to resolve each faster. They’ll also automate quality management to streamline customer, internal and regulatory audits."
  • A driver behind this trend is the projected uptick in customers' requests for "more quality audits[,] . . . which is going to motivate more manufacturers to automate quality management and compliance reporting, so their quality engineers don’t need to compile reports by hand."
  • A recent article in Quality Magazine explained that "[m]ost manufacturers looking to automate metrology are in search of a better way to handle inspection tasks and, in turn, be more efficient and profitable in terms of manufacturing quality. In addition, many are seeking ways to reduce reliance on manpower for inspection tasks while at the same time eliminating instances of operator error."
  • The Quality Magazine article also pointed out the benefits of automated metrology, which include the following: "[T]he ability to ensure products are within the designed tolerance limits; allowing the warning or control limit settings to make adjustments to the process; the ability to oversee the process in real time; improved repeatability of inspection processes, achieving greater existing resource efficiency and the ability to allocate them to other critical, non-automated tasks; and faster remedy of deviations to reduce the risk of producing bad parts."
  • By using solutions for automated metrology, manufacturing companies can incorporate "higher sampling rates . . . [as], in many cases 100% of parts can be measured, providing high quality data without operator influence resulting in higher level of confidence over manufacturing processes quality."

Quantitative Insights — Internal Failure & Rejection Rates in Manufacturing

  • By implementing six sigma DMAIC (Define, Measure, Analyze, Improve and Control), the "rejection rate of the selected manufacturing industry is brought to 1.2% from 5.3%."
  • Failure costs usually account for 70-85% "of an organization's total quality costs."
  • A research study identified "that 23 percent of all unplanned downtime in manufacturing is the result of human error, compared with rates as low as 9 percent in other sectors."
  • A study found "that manufacturers estimate their cost of quality at approximately 10 percent of revenues, while, in reality, that figure is double that at 20 percent."
  • With regard to manufacturing defects, "50 percent of production can end up as scrap because of defects, while in some complex manufacturing lines the rate of scrap can be as high as 90 percent."