Metrics Strategies of Leading Performers

Transcription

1 Metrics Strategies of Leading Performers PREMIUM SPONSORS SUPPORTING SPONSOR PREMIUM SEMICONDUCTOR / MEDICAL DEVICE SPONSOR 1

2 Speakers Julie Fraser, Principal Industry Analyst Cambashi Inc. Research Leader MESA Metrics Working Group Co-chair Ted Bobkowski, Principal Innovative Manufacturing Solutions Industry Council Active MESA Metrics Working Group member Mark Lincoln, VP Quality and Operations Terumo Cardiovascular Systems Industry Leader and respondent 2

3 How to Participate Today Open and close your Panel View, Select, and Test your audio Submit written questions in Questions box. Q&A addressed at the end of today s session The presentation is being recorded and will be posted along with the slides to MESA s Resource Library within one week. Available to Premium members. 3

4 Cambashi overview Mission-critical aspects of discrete, batch, process, and related industries Wide range of services from strategy to action Industry analysts, market researchers & consultants Bringing IT buyers & sellers together 25 years Headquarters UK (Cambridge) US office (Massachusetts) 4

5 Manufacturing Enterprise Solutions Association Mission Global community for improving Operations Management capabilities with effective technology solutions: Best practices & guidance to drive greater productivity & overall profitability of manufacturing enterprise Global Education Program: Educate manufacturing operations on best practices Facilitate innovation, collaboration & understanding for realtime enterprise & Plant to Enterprise (P2E) integration Connect members to, contribute & exchange strategies for operations excellence Visit: 5

6 MESA International - Waiting for you in MESA is A world-class Resource Library of valuable articles, whitepapers, Guidebooks and more Member companies and individuals in 89 countries Industry's only independent, professional Global Education Program supported by the global MESA community A seat at the table to contribute to the dialogue shaping the solutions to drive Operations Excellence for the next 20 years!

7 MESA Metrics Working Group Members want to know Metrics that Matter: Metrics, quality matter Members form WGs Holistic Metrics: Supply chain Harnessing the Power of Metrics to Diagnose & Solve WP#35 Metrics Framework and Guidebook: 2 nd Edition ROI Guidebook; IndustryWeek, Reference Model, Your topics MESA Metrics Research Timeline Need data Metrics Framework and Guidebook: Core practices Metrics for Major Initiatives: Lean, RTE, Quality Correlating Plant to Business Performance Liaison to ISO #22400 Plant KPI Standards begins Metrics Makeover Contest Pursuit of Performance Excellence 7

8 Pursuit of Performance Excellence: continued MESA Metrics Research Continued MESA Metrics Research New in this report: Depth & detail into Best Practice Processes Views into why speed is a challenge Analysis of widely used metrics Correlation between improved plant & financial metrics Key Take-Aways summary Previous studies available in MESA Resource Library 8

9 Thank you to our sponsors PREMIUM SPONSORS SUPPORTING SPONSOR SEMICONDUCTOR / MEDICAL DEVICE PREMIUM SPONSOR 9

10 Industry Council Members Manufacturer/producers only (13 active) Wide range of disciplines, titles, responsibility, scope Experienced and passionate about metrics Hot button issues shape survey Industries Represented Alcoholic beverages Construction materials Electronics Engineered industrial catalytic converters Food Home & garden consumer durables Power generation Resins & advanced plastics Semiconductors 10

11 Response Demographics Scope of Responsibilty Senior executive / C- or VP-level executive Director / Manager of managers / Head of department Manager / Project manager Supervisor/ Team leader Staff / Employee 0% 10% 20% 30% 40% 300+ Responses Companies All sizes, 40% under $100M 24+ industries Every production mode: discrete, packaged goods, other mixed, batch, continuous Individuals All regions Variety of titles & domains Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International 11

12 Current Situation Majority of respondents: Growing revenues and production volumes More products, SKUs, variants Concern about Operator Skills: Change Over Past Three Years Less 11% Increasing automation Concerned about staff skills Same 34% More 55% Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International 12

13 People Want Speedier Metrics Real-time (minutes or less) Within a shift End of shift Daily Weekly Monthly or less Rarely/ never Satisfaction with Staff Speed to See Metrics by Timing of Availability 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 and MESA International Metrics drive behavior, actions & outcomes so FASTER = BETTER 13

14 Operational dashboard users tend to use good line level metrics practices When do operators, line workers, supervisors, and those managing the operations see the metrics for their scope of control? Less Frequent Daily Within/end of shift OI / EMI Users Others Real-time (minutes or less) 0% 10% 20% 30% 40% 50% Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International 14

15 Challenges in timeliness 50% How necessary is it to have an analyst involved to cleanse the data prior to analysis and display? 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 and MESA International 15

16 Differences of opinion about issues What is the Major Problem Causing Slower or Less than Ideal Frequency of Metrics Display of Results? 70% 60% Lack of management commitment 50% 40% 30% Lack of will to change 20% 10% IT challenges 0% Senior executive / C- or VP-level executive Staff / Employee Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International 16

17 Who are Leading Performers? Business Movers Defined Improved EBITDA 10% or more Improved Net Operating Profit 10% or More Improved by 1% or more on over half of the Business Metrics in the study Portion of Response Qualified as Business Movers by Financial Improvement Business Movers 25% Improvements are average per year over past three years Others 75% Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International 17

18 Business Movers Practices Speed Data collection Analysis Display & Use Fully automated data collection for two major groups of operational metrics Efficiency metrics Business Movers Others Quality metrics 0% 10% 20% 30% 40% Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International 18

19 Line-level metrics best practices Portion of respondents that ALWAYS provide line-level metrics to operators and technicians Business Movers Others 0% 5% 10% 15% 20% 25% 30% Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International More likely to use other best practices that enable action 19

20 Metrics Maturity Journey Understand Training and education Start manual Gain visibility to react Respond and be reliable in the plant See trends across the business Include suppliers and partners; be predictive 20

21 Types of Metrics More Business Movers Improve Dramatically Predictive/preventive 25% 20% 15% 10% 5% 0% Portion of respondents who improved by 10% or more on key operational metrics Suppliers' manufacturing yield or test results Business Movers Overall equipment effectiveness (OEE) Others Translate operational results into financial terms Include suppliers & partners Holistic/multi-faceted Non-value added time Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International 21

22 Key to Success: Linking Plant and Business Metrics How well linked are the operational metrics to your financial and business metrics? Extremely Reasonably Business Movers Not very Others Not at all 0% 10% 20% 30% 40% 50% 60% Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International 22

23 IT Support 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Use of Selected Information Technologies ERP MES / MOM OI/ EMI/ Ops Dashboard Planning to buy in next 1-2 years Some use or pilot Widely in use Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics and MESA International 23

24 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 and MESA International 24

25 Two of Top Six Take-Aways Align metrics from business to plant to line and through the supply base Train and communicate in all levels critical to business success. Use metrics consistently as part of the company culture. Employ sound practices in performance measurement. Engage, educate, and empower employees Understand metrics to enhance skills. Provide line-level metrics during the shift. 25

26 Go out and improve Use metrics to align efforts, learn and improve Gain speed: it matters to employees and results Move toward metrics that tell the entire story Use applications to support speed and improvement Be confident IT has a payback Metrics maturity is a neverending journey: keep at it! 26

27 Julie Fraser Ted Bobkowski Mark Lincoln

28 Learn more with us Summary Report from sponsors or Comprehensive Report from MESA Resource Library Participate in the MESA Metrics Working Groups Work with Cambashi, MESA and the Study Sponsors to accelerate your journey to Business Success PREMIUM SPONSORS SUPPORT ING SPONSOR PREMIUM SEMICONDUCTOR / MEDICAL DEVICE SPONSOR 28