Automotive:

Published: Dec 9, 2024

Reading time: 4 min

Introduction

The automotive manufacturing sector faces staggering annual costs of $60-120 billion from unnecessary scrap. For Eaton, a global leader in power management, elevated scrap rates and inefficient maintenance practices were critical challenges impacting its operations. Partnering with eMoldino, Eaton leveraged cutting-edge tooling digitalization to address these issues, achieving transformative cost savings and operational efficiencies.

The Challenge: Persistent Inefficiencies

Eaton’s traditional manufacturing approach faced several key pain points:

  • High Scrap Rates: Monthly scrap volumes reached 3,159 parts.
  • Maintenance Inefficiencies: Dependence on time-based maintenance protocols led to suboptimal resource utilization and unplanned downtime.
  • Operational Disruptions: Limited real-time data access constrained production visibility, particularly during night shifts.

The need for a data-driven, proactive maintenance solution was clear.

The Solution: Tooling Digitalization and Real-Time Insights

Eaton implemented eMoldino’s tooling digitalization solution, strategically deploying 950 IoT sensors across six manufacturing sites, including the flagship Las Piedras facility. This solution provided comprehensive, real-time insights into tooling performance, transforming maintenance practices from reactive to proactive.

Core Components of the Solution:

  1. Sensor Deployment: A robust multi-layered network provided real-time data on cycle times, tooling wear, and maintenance intervals.
  2. Usage-Based Maintenance: Transitioning from time-based to usage-driven protocols reduced corrective maintenance instances.
  3. System Integration: Seamless alignment between eMoldino’s platform and Eaton’s legacy systems enabled smooth data flow and operational synergy.

Implementation Journey

Phase 1: Assessment and Planning (Q1 2022)

  • Conducted a comprehensive tooling audit, identifying inefficiencies in 63% of tools.
  • Deployed foundational sensor networks and began baseline data collection.

Phase 2: Digital Integration (Q2-Q3 2022)

  • Fully implemented sensor networks and optimized systems for real-time monitoring.
  • Delivered extensive training to operational teams to ensure seamless adoption.

Phase 3: Process Refinement (Q4 2022)

  • Enhanced analytics capabilities to track performance metrics.
  • Optimized workflows for maximum efficiency.

Key Results and Impact

1. Maintenance Efficiency

Eaton achieved a 44.4% reduction in corrective maintenance requirements, significantly decreasing the time and resources spent on emergency repairs, translating into $110,000 in monthly savings.

2. Scrap Rate Improvements

One of the most significant outcomes was the reduction of monthly scrap parts from 3,159 to near zero, representing a >90% improvement in scrap rates.

3. Asset Performance

The implementation of advanced monitoring protocols resulted in an 8% improvement in asset efficiency management.. 

4. Financial Performance

The transformation delivered $1.32M in annual maintenance savings and an exceptional 3,138% ROI from a $31,000 investment in tooling digitalization.

Technology at the Core

Our solution transformed Eaton’s operations by embedding cutting-edge digital infrastructure into its manufacturing processes:

  • Real-Time Monitoring: Advanced IoT sensors provided continuous data on tooling performance, enabling timely interventions.
  • Data-Driven Decision Framework: The analytics we provided enabled precise capacity planning and resource allocation.

Proactive Maintenance: Integration of predictive alerts reduced unplanned downtime and extended tooling lifespans.

Sustained Excellence and Expansion

The success at Las Piedras inspired Eaton to expand the program to additional sites, including Querétaro and Juarez. The company’s focus on continuous improvement and proactive maintenance ensures long-term operational resilience.

Conclusion: A Model for Industry Transformation

Eaton’s partnership with us demonstrates the transformative potential of tooling digitalization within Industry 4.0 frameworks. By adopting data-driven, usage-based maintenance protocols, Eaton:

  • Eliminated inefficiencies and reduced costs.
  • Improved asset performance and production quality.
  • Established a scalable model for digital transformation.

Key Outcomes:

  • $1.32 million in annual maintenance savings.
  • Over 3,000% ROI at select sites.
  • Scrap rate reduction exceeding 90%.

Eaton’s journey underscores the strategic importance of digital solutions in achieving manufacturing excellence, providing a blueprint for manufacturers seeking to optimize operations and drive sustained growth.

About the author

eMoldino

eMoldino aims to digitalize, streamline, and transform your manufacturing and supply chain operations. We help global manufacturers who want to drive corporate innovation while maintaining the core values of collaboration and sustainability. Talk with us to learn more 

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