Metrics that Matter MESA u nConference May 5 2014 Platinum Keystone Sponsors Gold Keystone Sponsors Format for this Session What is an Unconference MESA Content to start discussion MESA Working Group hot topics ID: 429639
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Manufacturing
Metrics that MatterMESA unConferenceMay 5, 2014
Platinum Keystone Sponsors
Gold Keystone SponsorsSlide2
Format for this SessionWhat is an Unconference
?MESA Content to start discussionMESA Working Group hot topicsDiscuss your questions and expertiseCreate action items for MESA Learn from each other
Experience what MESA Knows!Slide3
Introductions
Matthew Littlefield
President, LNS Research
matthew.littlefield@lnsresearch.com
John Jackiw
Business
Development
Manager, MAI & Metrics
Committee Chair
jjackiw@altavia.comSlide4
Introduction to MESA International
MESA is
…
…
building bridges-of-understanding from the Plant to the Enterprise
…to drive clarity on the role and value of modern Information Technologies
in production operationsSlide5
How MESA Delivers
Speaking with the Voice of Industry’s Practitioners
Peer
-to-
Peer
Global Education Program
Points
-of-
View
MESA International
:
Building Bridges-of-Understanding from the Plant to the EnterpriseSlide6
Metrics Working Group
People with passion for manufacturing and making it count B2MML & BatchML GEP classes – Dennis BrandlMetrics Guidebook Third Edition – John Jackiw2013-14
Research Study – (LNS Research): Matt Littlefield, Greg Goodwin, Mark Davidson
ROI/Justification Working Group – Darren Riley
Metrics Maturity Model – David McKnight (Part of the WG 9 Metrics Standard)ISO/TC 184/SC 5/WG 9 Metrics Standards (ISO Standard #22400) – Sachin KaradgiKPI effectiveness and Barriers – John HorstGartner and MESA Collaboration – Darren RileyTime
in State White Paper – Gerhard Greeff Slide7
©LNS Research 2014
Manufacturing industry research firm that helps clients innovate and achieve Operational Excellence… People, Processes & Technology
Research & Consulting Areas:
Enterprise Quality
Sustainability / Energy Management
Manufacturing Operations Management
Environment, Health & Safety
Differentiators:
Experienced analysts
Primary research – large data sets
Social research model
Interactive analysis & data visualizations
Deep industry executive contacts
About LNS Research - www.lnsresearch.comSlide8
Research SponsorsSlide9
Research Objectives
Review highlights of 5 month research studyUnderstand the average annual performance improvements for metrics categories – how do you compare?Explore relationships between operational metrics and financial performance metricsSee which enterprise and manufacturing software applications are being used by improvement leadersUncover how role-based dashboards are being utilized to support metrics programs today Anticipate the impacts that manufacturers believe new technologies like mobile, big data and cloud will have on metrics programsSlide10
Research Demographics
214 Respondents – comparing 2012 to 2013 metric improvementsCompared trends from previous bi-annual surveysSlide11
Trends & Impacts of
Changing Business Conditions
# of product variants increased from 62% in previous survey to 71%
Those who improved % of successful NPIs are doing a better job at OTCS (Improvements of 19.1% versus 12.5% overall)
Those who introduced more complex products are having more difficulty with inventory, with average annual improvements of only 4.1% versus 7.8% overall
Webcast Question:
How
do you define a successful New Product Introduction (NPI)?Slide12
Average Improvements:
Categories/Sets of Metrics
Webcast Question:
Which Operational metrics are having the most impact on
financial performance
?Slide13
Relationships: Operational &
Financial Metric Performance
Webcast Question:
Regarding the impact on OEE, which factor (quality, performance, or availability) was most affected?Slide14
Top Manufacturing Software
Applications Deployed
In comparison to previous survey:
More manufacturing software applications implemented
ERP grew from 67% to 74%
Data Historians grew from 39% to 42%
MES grew from 35% to 40%Slide15
Relationships: Software Use & Performance Improvements
Webcast Question:
What % of respondents indicated that they are planning to implement mobile technologies into their facilities?Slide16
Role-Based, Performance
Dashboard Capabilities
In comparison to previous survey:
Overall usage % did not change
Information speed & functionality increasingSlide17
Frequency of Role-Based,
Performance Metrics
In comparison to previous survey:
Only 17% of Operators in previous survey were seeing performance information in real-time versus 19% and 26%
Seeing performance information within a shift has increased from 13% in previous survey to 15%
Operations Managers are highest role seeing performance information within one day or sooner at 65%
Above is almost double when compared to previous survey
This indicates stronger engagement and involvement of Operations ManagersSlide18
Anticipated Impacts of Cloud
Technology on Metrics Programs
37% are still unsure
Lower TCO message well understood at 39%
Unburdening the IT organization at 37%
From separate LNS Research:
50% of manufacturing software providers are already offering some cloud-based offerings
Over 90% of are investing in cloud for future productsSlide19
Anticipated Impacts of Mobile
Technology on Metrics Programs
Virtually all manufacturing software providers have some Mobile application(s) available, and with more on the way
Anticipate that Plant Supervisors and Maintenance will be Mobile ‘self sufficient’
Anticipate that Plant Managers will do Mobile performance managementSlide20
Anticipated Impacts of ‘Big Data’
Technology on Metrics Programs
Webcast Question:
Is there a split
between companies that will take advantage of 'big data' on the business vs. the manufacturing
side?Slide21
Contact Information
Matthew Littlefield
President, LNS Research
matthew.littlefield@lnsresearch.com
John Jackiw
Business
Development
Manager, MAI & Metrics
Committee Chair
jjackiw@altavia.comSlide22
Why MESA?
Global community for improving Operations Management with ITBest
practices & guidance to drive productivity & profitability
Global
Education Program raising competency for production IT successFacilitate innovation for real-time Plant to Enterprise (P2E)
integrationBe heard and drive industry forwardJoin the conversation at: www.mesa.org
Slide23
To Improve Your Success…
www.mesa.org
Slide24
MESA’s Working Groups
Metrics Working GroupFounded in 2005Focused on how manufacturers successfully measure performance and improve itOpen for new members (must join MESA to participate)Partnered with LNS Research and released “Metrics That Really Matter” research in April 2014Chaired by John Jackiw
, MESA GEP Authorized Instructor & Project Manager, Alta Via Consulting