Manufacturing
Metrics that Matter
MESA unConference
May 5, 2014
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Format for this Session
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What is an Unconference?
MESA Content to start discussion
MESA Working Group hot topics
Discuss your questions and expertise
Create action items for MESA
Learn from each other
Experience what MESA Knows!
Copyright 2014, MESA International
The power of knowing what MESAKNOWS
Introductions
Matthew Littlefield
President, LNS Research
matthew.littlefield@lnsresearch.com
John Jackiw
Business Development
Manager,
MAI & Metrics
Committee Chair
jjackiw@altavia.com
Copyright 2014, MESA International
The power of knowing what MESAKNOWS
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 operations
Copyright 2014, MESA International
The power of knowing what MESA KNOWS
How MESA Delivers
MESA International:
Building Bridges-of-Understanding
from the Plant to the Enterprise
Peer
-toPeer
Points
-ofView
Global
Education
Program
Speaking with the
Voice of Industry’s
Practitioners
Copyright 2014, MESA International
The power of knowing what MESA KNOWS
Metrics Working Group
People with passion for manufacturing and making it count
• B2MML & BatchML GEP classes – Dennis Brandl
• Metrics Guidebook Third Edition – John Jackiw
• 2013-14 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
Karadgi
• KPI effectiveness and Barriers – John Horst
• Gartner and MESA Collaboration – Darren Riley
• Time in State White Paper – Gerhard Greeff
www.mesa.org
About LNS Research - www.lnsresearch.com
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
©LNS Research 2014
Research Sponsors
www.mesa.org
Research Objectives
• Review highlights of 5 month research study
• Understand the average annual performance improvements for
metrics categories – how do you compare?
• Explore relationships between operational metrics and financial
performance metrics
• See which enterprise and manufacturing software applications are
being used by improvement leaders
• Uncover 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 programs
www.mesa.org
Research Demographics
• 214 Respondents – comparing 2012 to 2013 metric improvements
• Compared trends from previous bi-annual surveys
www.mesa.org
Trends & Impacts of
Changing Business Conditions
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# 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)?
www.mesa.org
Average Improvements:
Categories/Sets of Metrics
Webcast
Question:
Which
Operational
metrics are
having the most
impact on
financial
performance?
www.mesa.org
Relationships: Operational &
Financial Metric Performance
Webcast
Question:
Regarding the
impact on OEE,
which factor
(quality,
performance, or
availability) was
most affected?
www.mesa.org
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%
www.mesa.org
Relationships: Software Use &
Performance Improvements
Webcast Question:
What % of respondents
indicated that they are
planning to implement
mobile technologies into
their facilities?
www.mesa.org
Role-Based, Performance
Dashboard Capabilities
• In comparison to previous survey:
– Overall usage % did not change
– Information speed & functionality increasing
www.mesa.org
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
Managers
www.mesa.org
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 products
www.mesa.org
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
management
www.mesa.org
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?
www.mesa.org
Contact Information
Matthew Littlefield
President, LNS Research
matthew.littlefield@lnsresearch.com
John Jackiw
Business Development
Manager,
MAI & Metrics
Committee Chair
jjackiw@altavia.com
Copyright 2014, MESA International
The power of knowing what MESAKNOWS
Why MESA?
Global community for improving
Operations Management with IT
Best practices & guidance to drive
productivity & profitability
Global Education Program raising
competency for production IT success
Facilitate innovation for real-time Plant
to Enterprise (P2E) integration
Be heard and drive industry forward
Join the conversation at: www.mesa.org
Copyright 2014, MESA International
The power of knowing what MESAKNOWS
To Improve Your Success…
www.mesa.org
Copyright 2014, MESA International
The power of knowing what MESA KNOWS
MESA’s Working Groups
Metrics Working Group
• Founded in 2005
• Focused on how manufacturers
successfully measure performance
and improve it
• Open for new members (must join
MESA to participate)
• Partnered with LNS Research and
released “Metrics That Really Matter”
research in April 2014
• Chaired by John Jackiw, MESA GEP
Authorized Instructor & Project
Manager, Alta Via Consulting
Copyright 2014, MESA International
The power of knowing what MESAKNOWS