Aviation Week Adv Mfg Metrics that Matter webcast
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Iyno's Julie Fraser participated in an Aviation Week Webcast sponsored by Deltek focused on linking business, engineering, and manufacturing. Fraser presents MESA International Pursuit of Performance Excellence data in the context of discrete project-based manufacturing.
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Aviation Week Adv Mfg Metrics that Matter webcast
- 1. Advanced Manufacturing: Metrics that Matter - Linking Business, Engineering, and the Modern Manufacturing Operation SPONSORED BY Thursday, October 25, 2012 2:00 – 3:00 pm ET
- 2. Advanced Manufacturing: Metrics that Matter - Linking Business, Engineering, and the Modern Manufacturing Operation Brian Groves Julie Fraser Michael Kauffman Mark Correll Director, Product Subject Matter GM, Rotating Parts Dir Prod Sys Mktg Expert, Center of Excellence GE Optimization Manufacturing Deltek Aviation Rockwell Collins Operations 2
- 3. Advanced Manufacturing: Metrics that Matter - Linking Business, Engineering, and the Modern Manufacturing Operation Brian Groves Director, Product Mktg Deltek Copyright 2012, Deltek, Inc. 3
- 4. Supporting Complex, Discrete Manufacturers Project Human Capital Financial Project Manufacturing Management Management Management Do More Win More Market Intelligence Teaming Solutions CRM and Capture Management Know More and Achieve More Business Performance & Integrated Program Management Winning More Increasing Project Reducing the Cost of Improving Cash Flow Business Visibility Compliance Copyright 2012, Deltek, Inc.
- 5. The Data Model Financial Statements Time Procurement Every transaction is connected to Invoices Materials an account, an organization, and a project Manufacturing Regulatory Payroll, Employee Requirements Every transaction has project Management, and specific invoicing, accounting, Benefits Invoicing, Costing, and procurement rules applied and Procurement Reporting Rules Compliance and Audit Copyright 2012, Deltek, Inc.
- 6. Advanced Manufacturing: Metrics that Matter - Linking Business, Engineering, and the Modern Manufacturing Operation Julie Fraser Subject Matter Expert Manufacturing Copyright 2012, Iyno Advisors 6
- 7. People Want Speedier Metrics Satisfaction with Staff Speed to See Metrics by Timing of Availability Real-time (minutes or less) Within a shift End of shift Daily Weekly Monthly or less Rarely/ never 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes: typically fast enough: satisfactory No: typically not fast enough: unsatisfactory Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International Metrics drive behavior, actions & outcomes so FASTER = BETTER 7 Copyright 2012, Iyno Advisors
- 8. Challenges in Timeliness How necessary is it to have an analyst involved to cleanse the data prior to analysis and display? 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Extremely Reasonably Not very Not at all Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International 8 Copyright 2012, Iyno Advisors
- 9. Differences of Opinion about Issues What is the major problem causing slower or less than ideal frequency of metrics display of results? 70% Lack of 60% management commitment 50% 40% Lack of will to 30% change 20% 10% IT challenges 0% Senior executive / C- or VP- Staff / Employee level executive Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International 9 Copyright 2012, Iyno Advisors
- 10. Types of Metrics Business Movers Improve Dramatically • Predictive/preventive • Translate operational results into Portion of respondents who financial terms improved by 10% or more on key operational metrics • Include suppliers & partners 25% • Holistic/multi-faceted 20% • Non-value added time 15% 10% 5% 0% Suppliers' Overall equipment manufacturing yield effectiveness (OEE) or test results Business Movers Others Source: Pursuit of Performance Excellence:Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International Copyright 2012, Iyno Advisors 10
- 11. MES/MOM Use Correlates to Success Higher portion of MES Users achieved at least 10% improvement on key financial metrics EBITDA MES/MOM Users Others Manufacturing cost as % of revenue 0% 5% 10% 15% 20% Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International 11 Copyright 2012, Iyno Advisors
- 12. To access the rest of this webinar and the GE and Rockwell Collins presentations, visit Aviation Week. http://events.aviationweek.com/webinars/index.htm This site provides an audio recording of the entire session plus the Q&A session and follow-up responses to audience questions. Julie Fraser, Iyno Advisors 508-362-3480 julie@iyno.com Brian Groves, Deltek 703.995.2445 briangroves@deltek.com Copyright 2012, Iyno Advisors
Editor's Notes
- There are a few things we have seen consistently across the four studies.One is this: seeing metrics faster is better.Another is that companies that perform best have done a better job linking enterprise and plant information systems.On this point
- JULIE, Mark, TedOne reason is that most respondents need a person to cleanse the data prior to analysis as a metric.That would slow things down.Mark, What is your experience? Can IT solve this issue?Mark: Not strictly an IT issue – it’s about controlling the data input. Ted (jump in after Mark)From my experience, not all data is automated or known real time, so there is always a level of adjustment, cleansing before analysis. These are usually aggregated performance, scrap, or financial metrics. The move to as much automated as possible is exciting.
- Just as I previously blamed IT for something that’s not entirely their fault, this data makes me think maybe executives are doing that in their companies too.Let me orient you to this chart.Each waterfall-style column here represents a group of respondents. In this case, by role. We selected the executives on the left and the non-managerial employees on the right. Then the response within that group is listed in each color-coded portion of the bar. The dark blue is the portion of those with that scope of responsibility who think IT challenges are the major problem slowing down display of metrics results. The yellow portion of the bar shows the percentage that think there is a lack of will to change. And the top blue bars are the portion who see a lack of management commitment as a problem. These are portions of the response base in each case. And you can see they are quite different. They do not add up to 100% because there were other response options we are not showing here.This might suggest some cultural challenges – this type of disconnect.Ted, why do you think this might be – what are the critical factors?TEDCan’t emphasize enough that everyone needs to see that metrics and automation are understood and supported from the top. Having seen managers and supervisors questions things and then top management bend raises credibility issues in metrics and all efforts.
- Maturity shows up in what types of metrics companies improve on as well. What you measure is what you improve…And as your metrics program matures, some of the measures will be more holistic and deliver deeper insight: some are multi-faceted, include your suppliers, and translate operations into financial terms.
- Buying MES is a complex decision, and you must make the business case. MESA is developing an ROI guidebook, so look for that later this year. In our data, there is strong evidence of improvement by MES/MOM users - two and a half times the portion have improved earnings significantly than others.All of our studies show similar results – as well as other studies I’ve conducted over the years. Using MES results in strong business results.