Do you know MESA?
ManufacturingMetrics that MatterMESA 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!
The power of knowing what MESAKNOWSCopyright 2014, MESA International
Introductions
Matthew LittlefieldPresident, LNS [email protected]
John JackiwBusiness DevelopmentManager, MAI & MetricsCommittee Chair [email protected]
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
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
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
©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
www.mesa.org
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 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)?
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 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%
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, PerformanceDashboard Capabilities
• In comparison to previous survey:– Overall usage % did not change– Information speed & functionality increasing
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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 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
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
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?
The power of knowing what MESAKNOWSCopyright 2014, MESA International
Contact Information
Matthew LittlefieldPresident, LNS [email protected]
John JackiwBusiness DevelopmentManager, MAI & MetricsCommittee Chair [email protected]
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
The power of knowing what MESA KNOWSCopyright 2014, MESA International
To Improve Your Success…
www.mesa.org
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