Measuring data crucial to operational excellence

A new handbook released by the Manufacturing Enterprise Solutions Association (MESA) shows that manufacturers that leverage technology to measure key performance indicators have an edge in managing their operations, yet very few manufacturers effectively manage their performance. MESA released the results of their “Metrics That Matter” report at their annual conference in Orlando in...

11/01/2006


A new handbook released by the Manufacturing Enterprise Solutions Association (MESA) shows that manufacturers that leverage technology to measure key performance indicators have an edge in managing their operations, yet very few manufacturers effectively manage their performance. MESA released the results of their “Metrics That Matter” report at their annual conference in Orlando in October. PLANT ENGINEERING was a media sponsor of the event.

“What we’re talking about is manufacturers’ survival,” said Julie Fraser, Principal of Industry Directions, Inc, the study’s consultant. “If operations and finance aren’t on the same page at the same time, you have a company at cross-purposes. And most manufacturers can’t afford to be in that position today.”

The study also reveals that the top two manufacturing applications planned for investment in the next 12 months are plant dashboards and manufacturing execution systems. A larger percentage of the companies currently using these two applications have improved significantly against both operations and business metrics than others.

Among the study highlights:

  • Only 3% of study respondents report very effective links between operations KPIs and business metrics; this means that most companies’ management does not have views that accurately represent progress and plant contribution.

  • More than 70% of respondents measure on-time delivery, OSHA-reportable incidents per year, and manufacturing cycle time in their operations.

  • On-time delivery to request is a more common KPI than on-time to commit, indicating great progress in demand-driven and supply chain metrics.

  • One in three respondents plan to buy plant dashboards in the next 12 months, and 29% plan to buy MES, making them the top investments planned for the year, out of 18 software technologies in the survey.

  • Respondents using MES are over twice as likely to have improved over 1% annually on average in the past three years in upside production flexibility, energy cost per unit of production and market share.


No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2015 Top Plant: Phoenix Contact, Middletown, Pa.; 2015 Best Practices: Automation, Electrical Safety, Electrical Systems, Pneumatics, Material Handling, Mechanical Systems
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Migrating industrial networks; Tracking HMI advances; Making the right automation changes
Understanding transfer switch operation; Coordinating protective devices; Analyzing NEC 2014 changes; Cooling data centers
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.