Embarking and accelerating on a continuous improvement journey toward improved manufacturing performance is becoming increasingly important these days, as the shifts around global supply and demand, heightened customer expectations, and exciting newtechnological capabilities have created an atmosphere where manufacturing excellence is required to lead, or even maintain your spot within your industry, regardless of what that industry might be.
For this reason, it's important to ensure that your improvement efforts are optimized to create the most value. A key part of achieving new levels of excellence is knowing where you are and where you've been through benchmarking and improvement programs that are supported by an effective metrics program. Because you can't measure everything, it's imperative that you focus your time and energy on the metrics that will ultimately deliver the most business value for your given situation.
That's why LNS Research worked with MESA International to conduct the 2013-2014 'Metrics that Matter' research study, to pinpoint what metrics are translating to the most operational and financial business value to leading manufacturers today, across a broad range of industries and company sizes.
No matter where you are in your performance improvement initiatives, you're going to want to see the numbers below, which represent both broad and detailed analyses about business and operational metric correlations, along with Manufacturing Operations Management (MOM) software usage.
Average Annual Improvements in Key Metric Categories
On average, manufacturers surveyed experienced an 8.6% annual improvement in financial metrics from 2012 to 2013 Tweet this stat!
On average, manufacturing respondents experienced a 15% annual improvement in inventory metrics from 2012 to 2013 Tweet this stat!
On average, manufacturers surveyed experienced a 7.8% annual improvement in innovation metrics from 2012 to 2013 Tweet this stat!
On average, manufacturing respondents experienced a 10% annual improvement in responsiveness metrics from 2012 to 2013 Tweet this stat!
On average, manufacturers surveyed experienced a 17% annual improvement in efficiency metrics from 2012 to 2013 Tweet this stat!
On average, manufacturing respondents experienced a 13.7% annual improvement in quality metrics from 2012 to 2013 Tweet this stat!
On average, manufacturers surveyed experienced a 14.9% annual improvement in maintenance metrics from 2012 to 2013 Tweet this stat!
On average, manufacturing respondents experienced an 18.5% annual improvement in compliance metrics from 2012 to 2013 Tweet this stat!
Identifying Top Performers in Operational Metrics Improvements
72%: the average percent of successful new product introductions for manufacturing respondents in 2013 Tweet this stat!
The top 7% of manufacturers surveyed achieved a 90% or better successful new product introduction rate in 2013 Tweet this stat!
71: the average overall equipment effectiveness (OEE) for manufacturers surveyed in 2013 Tweet this stat!
The top 11% of these same manufacturers achieved an average OEE of 80 or higher in 2013 Tweet this stat!
16%: the average annual financial improvements of manufacturing respondents with the highest NPI rates (versus 8.6 for all others) Tweet this stat!
14%: the average annual financial improvements of manufacturers surveyed with the highest OEE rates (versus 8.6 for all others) Tweet this stat!
13.1%: the overall average annual improvement in total cost per unit for manufacturing respondents in 2013 Tweet this stat!
Correlations Between MOM Software Application Use and Performance Improvements
24.1%: the average annual total cost per unit improvement for manufacturers surveyed with OI/EMI solutions in 2013 Tweet this stat!
22.5%: the average annual total cost per unit improvement for manufacturing respondents that used MES software in 2013 Tweet this stat!
10.4%: the average annual improvement in net profit margins for all manufacturers surveyed in 2013 Tweet this stat!
19.4%: the average annual improvement in net profit margins for manufacturers surveyed who utilized comprehensive Manufacturing Operations Management (MOM) suites in 2013 Tweet this stat!
12.5%: the average annual improvement in on-time and complete shipments for all manufacturing respondents in 2013 Tweet this stat!
22%: the average annual improvement in on-time and complete shipments for manufacturers surveyed that used MES software in 2013 Tweet this stat!
19.1%: the average annual improvement in on-time and complete shipments for manufacturing respondents who used PLM software in 2013 Tweet this stat!
20.4%: the average annual improvement in on-time and complete shipments for manufacturers surveyed who used Quality Management software in 2013 Tweet this stat!
Enterprise Software Adoption Rates
74% of manufacturers surveyed were using ERP software in 2013 Tweet this stat!
53% of these manufacturers were using Planning, Scheduling, and Dispatching software in 2013 Tweet this stat!
47% of manufacturing respondents were using Quality Management software in 2013 Tweet this stat!
47% of manufacturers surveyed were using Document Management software in 2013 Tweet this stat!
42% of manufacturing respondents were using Data Historians in 2013 Tweet this stat!
40% of manufacturers surveyed were using Manufacturing Execution System (MES) software in 2013 Tweet this stat!
38% of manufacturing respondents were using Asset Management software in 2013 Tweet this stat!
Data and Information Visibility by Job Role
19% of manufacturers surveyed had the capability to view performance information in real-time at the line level in 2013 Tweet this stat!
26% of manufacturing respondents had the capability to view performance information in real-time at the machine level in 2013 Tweet this stat!
15% of manufacturers surveyed had the capability to view performance information within a shift at the line level in 2013 Tweet this stat!
65% of manufacturing companies surveyed, stated that their operations managers had the capability to view shift performance information within one day or sooner in 2013 Tweet this stat!
Connect the Dots on These and Other Financial and Operational Metrics
For a much deeper dive on which metrics, supporting technologies, and best metric practices are driving the most business value for manufacturers today, join MESA International and LNS Research for a free webcast, "2013-2014 Manufacturing Metrics that Really Matter," on Wednesday, April 16 at 11:00 am EST.
