Optimation Profiled in As411.com

Measuring Manufacturing Performance: How Each Part Contributes to Profitability is the title of a feature article authored by manufacturing journalist, Thomas R. Cutler.  Appearing in Accounting Software 411 (http://www.accountingsoftware411.com/Press/PressDocView.aspx?docid=10048), Cutler suggested, “The cost of measuring manufacturing performance is a vital element to bottom-line profitability, yet too often secondary standards have mislead CFO’s and caused many wrong decisions.”

According to Michael D. Lundy P.E. and President of Blue Springs, Missouri-based, Optimation, “The most important standard is to know how each part produced contributes to the profitability of the company.”  All businesses make measurements which are intended to tell management about the performance and health of the business.  Often these measurements are secondary standards such as square feet produced, tons shipped, contracts signed, or units shipped. CFO’s and Finance Managers use these measurements with a false sense of security that they are actually managing the company well. Too often one can hear a manager say, “I do not understand why profits are down…the measurement of ‘X’ indicated that we would have a good month.”

The measurement in question was not designed to reflect the profitability of the company which is the reason for this confusion. One metric frequently measure is pieces-per-hour, a rate measurement designed to measure efficiency of a machine or group of machines. Lundy asserts, “There are many reasons why an increase in pieces-per-hour may not cause an increase in profit. The first is the sales price and therefore contribution may be lower for the product mix produced during the month. Another is that raw material may cost more.” 

Indeed there are a number of costs that have nothing to do with productivity that may be out of control during the month.  For thirty years Optimation® has been the world leader in Part Nesting for Optimized Material and Labor utilization. Consistently providing product advancement leadership to industry, the company’s new Nesting Technology, AxiomVE make previous nesting methods obsolete.   The new technology, Vision Emulation™, allows the system to “see” the shape of parts, just as human eyes would view them.  When a person looks at a part, they see the whole shape and any special features on the part.  This information is then used to determine if the part will fit in an area of the nest.  Vision Emulation eliminates excessive trial and error as well as excessive rotation.

Optimation offers benchmarking against any other method of part nesting; recent benchmarks have show improvements up to 15% in material efficiency alone.  As lean efficiencies are essential, the most advanced nesting technology guarantees the most important parts are always nested in the next available machine, providing advanced information to integrated costing, labor reporting, and material inventory systems. Because Optimation is strong financially and has the most advanced technology; the company offers direct financing from its own capital resources.

Optimation

www.optimation.com

Michael D Lundy P.E.

Opti1@optinest.com

877-827-2100