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Do you know MESA? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

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Page 1: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

Do you know MESA?

ManufacturingMetrics that MatterMESA unConference

May 5, 2014

Platinum Keystone Sponsors Gold Keystone Sponsors

Page 2: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

The power of knowing what MESAKNOWSCopyright 2014, MESA International

Format for this Session

• 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 otherExperience what MESA Knows!

Page 3: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

The power of knowing what MESAKNOWSCopyright 2014, MESA International

Introductions

Matthew LittlefieldPresident, LNS [email protected]

John JackiwBusiness DevelopmentManager, MAI & MetricsCommittee Chair [email protected]

Page 4: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

The power of knowing what MESA KNOWSCopyright 2014, MESA International

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 Technologiesin production operations

Page 5: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

The power of knowing what MESA KNOWSCopyright 2014, MESA International

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 Enterprise

Page 6: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

www.mesa.org

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

Page 7: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

©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.com

Page 9: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone 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

Page 10: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

www.mesa.org

Research Demographics

• 214 Respondents – comparing 2012 to 2013 metric improvements• Compared trends from previous bi-annual surveys

Page 11: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

www.mesa.org

Trends & Impacts ofChanging 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)?

Page 12: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

www.mesa.org

Average Improvements:Categories/Sets of Metrics

Webcast Question:

Which Operational metrics are having the most impact on financial performance?

Page 13: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

www.mesa.org

Relationships: Operational &Financial Metric Performance

Webcast Question:

Regarding the impact on OEE, which factor (quality, performance, or availability) was most affected?

Page 14: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

www.mesa.org

Top Manufacturing SoftwareApplications 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%

Page 15: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

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?

Page 16: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

www.mesa.org

Role-Based, PerformanceDashboard Capabilities

• In comparison to previous survey:– Overall usage % did not change– Information speed & functionality increasing

Page 17: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

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

Page 18: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

www.mesa.org

Anticipated Impacts of CloudTechnology 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

Page 19: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

www.mesa.org

Anticipated Impacts of MobileTechnology 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

Page 20: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

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?

Page 21: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

The power of knowing what MESAKNOWSCopyright 2014, MESA International

Contact Information

Matthew LittlefieldPresident, LNS [email protected]

John JackiwBusiness DevelopmentManager, MAI & MetricsCommittee Chair [email protected]

Page 22: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

The power of knowing what MESAKNOWSCopyright 2014, MESA International

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

Page 23: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

The power of knowing what MESA KNOWSCopyright 2014, MESA International

To Improve Your Success…

www.mesa.org

Page 24: Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

The power of knowing what MESAKNOWSCopyright 2014, MESA International

MESA’s Working GroupsMetrics 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