36 Operational Excellence Stats Every Manufacturing Leader Must See

Posted by Mike Roberts on Mon, Jan 27, 2014 @ 07:00 AM

operational excellence statisticsSince the inception of LNS Research, we’ve been talking about the “journey” of Operational Excellence in manufacturing. And the reason we emphasize that it’s a journey so frequently is because when you adopt a continuous improvement mindset, the moment your reach your goals, it’s time to set even higher ones. If you ask anyone who’s great at something – Fortune 500 CEOs, professional athletes, revered authors – you’ll find that they’ve adopted the same attitude.

Effectively setting goals and realizing them, however, first requires an understanding of your own performance as well as the performance of your peers. Taking data from both our Manufacturing Operations Management and Metrics that Matter research studies, we’ve compiled a list of key statistics for you to leverage on your operational excellence journey. The data’s based on survey responses of over 500 manufacturing professionals.

Whether you’re just starting your Operational Excellence journey or you’re well into it, these statistics and metrics should provide you some perspective. They cover a broad range of areas, from average performance improvements (2012 to 2013), to top-of-mind executive objectives and challenges, and adoption and planned adoption rates of critical people, process, and technology resources.

Please feel free to keep the conversation going on LinkedIn and Twitter with the hashtag #MfgOpEx.

The Operational Excellence Journey

The average manufacturing organization has been on an operational excellence journey for 2.5 years – the highest number of years was 20 Tweet this stat!

Strategic Objectives

66% of manufacturing executives pegged a top strategic objective in 2013 as ensuring consistent quality Tweet this stat!

56% of manufacturing executives pegged a top strategic objective in 2013 as responsiveness to customer demands Tweet this stat!

49% of manufacturing executives pegged a top strategic objective in 2013 as increasing production capacity and capabilities Tweet this stat!

Top Challenges

26% of manufacturing executives noted a top challenge in 2013 of a lack of collaboration across different departments Tweet this stat!

25% of manufacturing executives noted a top challenge in 2013 of having too many disparate systems and data sources Tweet this stat!

25% of manufacturing executives noted a top challenge in 2013 of attaining ROI justifications for improvement investments Tweet this stat!

Performance Improvements

Across a set of key financial KPIs, manufacturers experienced an average improvement of 3.5% from 2012 to 2013 Tweet this stat!

Across a set of key inventory KPIs, manufacturers experienced an average improvement of 4% from 2012 to 2013 Tweet this stat!

Across a set of key innovation KPIs, manufacturers experienced an average improvement of 1% from 2012 to 2013 Tweet this stat!

Across a set of key responsiveness KPIs, manufacturers experienced an average improvement of 3% from 2012 to 2013 Tweet this stat!

Across a set of key efficiency KPIs, manufacturers experienced an average improvement of 6.5% from 2012 to 2013 Tweet this stat!

Across a set of key quality KPIs, manufacturers experienced an average improvement of 4.5% from 2012 to 2013 Tweet this stat!

Across a set of key maintenance KPIs, manufacturers experienced an average improvement of 2% from 2012 to 2013 Tweet this stat!

Across a set of key compliance KPIs, manufacturers experienced an average improvement of 3.5% from 2012 to 2013 Tweet this stat!

Optimizing People Resources

61% of manufacturers have established or plan to establish a continuous improvement/lean manufacturing group in 2014 Tweet this stat!

53% of manufacturers have established or plan to establish cross-functional teams that enable line of business, IT, engineering, and manufacturing personnel to collaborate in 2014 Tweet this stat!

46% of manufacturers have established or plan to establish a strategic operational excellence group in 2014 Tweet this stat!

Overall, 50% of manufacturers have implemented or are implementing cross-functional groups to support their Operational Excellence journeys in 2014 Tweet this stat!

Optimizing Process Resources

29% of manufacturers have implemented or plan to implement lean manufacturing by 2014 Tweet this stat!

25% of manufacturers have implemented or plan to implement ISO 9000/9001 by 2014 Tweet this stat!

23% of manufacturers have implemented or plan to implement an Operational Excellence program by 2014 Tweet this stat!

22% of manufacturers have implemented or plan to implement Six Sigma by 2014 Tweet this stat!

Overall, 73% of manufacturers have implemented or plan to implement some type(s) of formal process improvement programs by 2014 Tweet this stat!

Optimizing Technology Resources

18% of manufacturers currently have the processes and software needed to deliver KPIs to all personnel in real time Tweet this stat!

15% of manufacturers plan to have the processes and software needed to deliver KPIs to all personnel in real time by 2014 Tweet this stat!

Overall, 60% of manufacturers have implemented or are implementing software in combination with processes over the next year Tweet this stat!

45% of manufacturers have the process and software capabilities needed to manage individual plant production Tweet this stat!

38% of manufacturers have process and software capabilities needed to manage plans across lines of business Tweet this stat!

31% of manufacturers have the process and software capabilities needed to manage their enterprise portfolio of products and plants Tweet this stat!

58% of companies that effectively manage manufacturing operations use Quality Management software Tweet this stat!

53% of companies that effectively manage manufacturing operations use Planning, Scheduling, and Dispatching software Tweet this stat!

50% of companies that effectively manage manufacturing operations use Manufacturing Execution System (MES) software Tweet this stat!

48% of companies that effectively manage manufacturing operations use Document Management software Tweet this stat!

33% of companies that effectively manage manufacturing operations use Manufacturing Process Management/Workflow software Tweet this stat!

29% of companies that effectively manage manufacturing operations use Operations Intelligence/Enterprise Manufacturing Intelligence software Tweet this stat!

Don’t Wait for Operational Excellence to Come to You!

If you’re interested in learning more about the leading best practices and strategies for achieving operational excellence in the manufacturing environment, join LNS Research’s Principal Analyst Mark Davidson for a webcast on the topic on January 29, 11a.m. (EST). He’ll share benchmark data from LNS Research’s surveys, real-life strategies for continuous improvement, and expert tips for getting on the right path toward operational excellence.

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Tags: Manufacturing Operations Management (MOM), Operational Excellence