Best of class manufacturers track their performance by measuring a set of key metrics for a variety of needs such as continuous improvement and costing. Given the importance of these metrics, it is important to ask – are the correct metrics being used, and which potential savings are overlooked when measuring the wrong ones?
The topics of “material utilization” or “material savings” were the center of intense discussions and process evaluations conducted with dozens of manufacturers worldwide, specifically as it pertains to optimal roll selection, cut-planning and nesting. Effectively all manufacturers place a great emphasis on tracking their material yield. However, the vast majority of them measure the yield through the eyes of the Product -level nesting process. Such manufacturers measure their ‘Product-level Nesting Yield’ (Figure 1), which is the total area of the parts in a product divided by the area of the material used for the nest. In many cases, the nests are prepared once per product, on a given material size, and then stored for future use and reference.