Scrap deeply hurts profits in manufacturing. Manufacturing rework, waste, scrap, and defects all add up to product recalls, warranty returns, and after-sales servicing expenses. According to Forbes, poor product quality can cost manufacturers up to 30% of their total revenue.
Products are becoming increasingly complex and production processes are being globally dispersed. Due to this, pressure is forced upon processes and skilled employees. As experts age out of the workforce, the challenge lies in refilling the skills gap. Unfortunately, as the gap grows, so does potential for human error and the cost of scrap, rework, and downtime.
Augmented reality (AR) is giving manufacturers powerful new ways to optimize operations – simultaneously reducing scrap and waste. Manufacturers utilize augmented reality to overlay information onto physical objects using digital displays.
AR uses a process known as “computer vision” to target specific objects of interest. Then, it precisely overlays straightforward instructions and helpful guidance. Industrial AR solutions can even integrate real-time IIoT. This provides real-time performance data of a machine that is being set up, operated, or even serviced. With a greater understanding of machine operation and performance, employees augment their current skills. This can further reduce risk of human error and the manufacturing rework costs.
Eliminate Mistakes in Process Deployments
Implementing new procedures can be a complex process, which means it naturally results in increased opportunities for human error. Traditional paper instructions, intricate equipment, or communicating directions can often even further stunt progress. With the digital work instructions created through AR, users are allowed to show operatives exactly what to do, in what sequence, using which controls; and simultaneously alerting them of any potential errors while they’re doing it.
Narrow the Industrial Skills Gap
AR is becoming crucial to closing the skills gaps. Digital work instructions accelerate on-the-floor training by helping new workers swiftly learn their job and adapt to processes. With the right AR tools, new employees learn more effectively, be trained at a lower cost, complete training quicker, and are less prone to error when finally starting their first shift.
AR also empowers experts to expand the impact of their experience in order to preserve and transfer their knowledge. Experts can provide remote mentorship – guiding others through procedures, adding notes to the shared AR display, and more. All from anywhere in the world, by building a library of intuitive instructional materials. Augmented reality tools can additionally be used to to record, annotate and deliver first-person views.
The Business Impact of Reducing Manufacturing Scrap
By reducing human error with AR, output efficiency can be increased and manufacturing scrap/rework can be decreased. Using industrial AR, one high-tech manufacturer is on track to reduce manufacturing rework and scrap by 25%, resulting in $15 million of savings per facility.
The same manufacturer also managed to shorten document authoring time by 50%, accelerate training time by 40%, and minimize unscheduled downtime by 28%. As a result, their operational costs have been substantially reduced and their margins have significantly improved, giving them the opportunity to redirect capital that would previously have been lost to scrap and rework into productive investment.