Metal Products Manufacturer Cuts Scrap 75%, Saves Millions

Industry trends Need: Implement custom machine learning solution to help improve production flows. Outcome: Improved flow management cut scrap 75%, generating millions in savings. Understanding the situation A metal products manufacturer with complex production processes requiring advanced levels of materials management, engineering, and institutional knowledge needed help to streamline their production process. The business uses continuous production flow versus stock-keeping units and lots, which involves significant tracking at each stage of the production process. One process was based on the experience of metallurgists, who determined production variables using a combination of anecdotal information and educated estimates. They manually worked out complex parameters involving customer requirements, machine capacity, raw material characteristics, and more. Inaccurate order recipes would result in significant scrap, and time-intensive rearrangement of schedules caused delays for other orders. Learn what digital technology can do for your organization. Exploring the challenge Working side by side with the metallurgists, CLA’s digital team gathered three years of historical data and built a custom machine learning model for production management. The model was fed with chemical and physical properties of materials and each customer’s required specs — which created a bottom-up view of how to efficiently drive each order. But that provided only half the picture, and engineers were concerned about balance. So CLA expanded the model to include a top-down inverse view of an overall production parameter target and its downstream impact on the day’s blend of customer specifications. Together with CLA, the client transformed how the manufacturing floor is driven and opened up new capacity to fuel growth. Achieving results With balanced bottom-up and top-down views, the client is now driving production based on data science instead of guesswork. What used to take a metallurgist a full day — an average of 15 orders at 30 minutes each — now requires just 30 minutes to plan all 15 orders. More accurate recipes resulted in 75% reduction of scrap and improved factory floor scheduling, which reduced disruptions and created capacity to scale the business. Metallurgists are now spending their time improving testing in the lab to continuously refine the model for even better results. Learn what digital technology can do for your organization. Complete the form below to connect with CLA. Contact us Learn what digital technology can do for your organization. Complete the form below to connect with CLA. If you are unable to see the form below, please complete your submission here . Connect © 2024 CliftonLarsonAllen. All rights reserved. "CliftonLarsonAllen" and "CLA" refer to CliftonLarsonAllen LLP. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. CliftonLarsonAllen is a Minnesota LLP, with more than 120 locations across the United States. The Minnesota certificate number is 00963. The California license number is 7083. The Maryland permit number is 39235. The New York permit number is 64508. The North Carolina certificate number is 26858. If you have questions regarding individual license information, please contact Elizabeth Spencer . CLA (CliftonLarsonAllen LLP), an independent legal entity, is a network member of CLA Global, an international organization of independent accounting and advisory firms. Each CLA Global network firm is a member of CLA Global Limited, a UK private company limited by guarantee. CLA Global Limited does not practice accountancy or provide any services to clients. CLA (CliftonLarsonAllen LLP) is not an agent of any other member of CLA Global Limited, cannot obligate any other member firm, and is liable only for its own acts or omissions and not those of any other member firm. Similarly, CLA Global Limited cannot act as an agent of any member firm and cannot obligate any member firm. The names “CLA Global” and/or “CliftonLarsonAllen,” and the associated logo, are used under license.