My Take: Metrics that Matter

Supply Chain Shaman

Tomorrow, I have a call with a manufacturing company to answer the question, “ What is the most important concept in the book?” While Joe is trying to balance the feedback from Filipe and Frank, he is often asked to change his metric targets by his CFO named Lou. After two years of research, I think that we throw the supply chain out of balance and limit its potential through the use of traditional and functional metrics. Achieving Balance in Metrics.

Aligning Metrics to Strategy

synchrono

When we began our metrics discussion, we talked about how behaviors are too often dictated by metrics—and whether or not these behaviors actually “move the needle” for sustainable supply chain improvements. Mark Davidson’s blog about aligning metrics to larger goals and objectives covers this topic well. We all know that in today’s organizations there are many, competing strategies and objectives. See the Operations Metrics for Action Guide ).

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Modern Metrics

synchrono

The two areas of my working world are embracing technology like never before: Marketing and manufacturing. While digital content and automated technologies gave birth to the modern marketer, a more real-time, digitally connected enterprise is driving modern manufacturing strategies like the Factory of the Future, Smart Manufacturing and Industry 4.0 – all of which are grounded in Demand-Driven Manufacturing methods. How Technology Has Changed What We Measure.

The Most Important Distribution Center Metrics to Track and Understand

Cerasis

Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. Additionally, the use of metrics fosters positive relationships with coworkers and adherence to rulesets and best practices for the respective third-party logistics provider (3PL). What Distribution Center Metrics Need Tracking? What distribution center metrics are you tracking or are not listed here?

Sales Dashboards: 16 Metrics For Manufacturers

Silvon Software

The more challenging part of dashboarding, however, gets down to the actual metrics that should be included as part of a performance management strategy. As a place to start, I thought I’d provide a shortlist of both simple and more complex metrics that our manufacturing and distribution clients are using in their dashboards today. Today’s post focuses on Sales metrics only. Basic Sales Metrics. More Complex Sales Metrics.

Cleanroom Manufacturing Strategies That Pay

IQMS

Bottom Line: Cleanrooms provide the potential for plastics manufacturers to increase the average machine rate per hour, average markups and profit per production run by charging a price premium based on their certifications, compliance and industry expertise. Plastics manufacturers are relying on and investing in cleanrooms to capture new customers and gain a greater share of revenues from existing accounts. Proven Strategies For Improving Cleanroom Manufacturing.

[e-Book] The Ultimate Guide to Manufacturing, Supply Chain, Logistics, Transportation, & Freight Metrics & KPIs

Cerasis

Take a look at how a business can use technology, metrics, and services to improve transportation processes, which range from supplier shipping to route optimization. We hope you enjoy this comprehensive look into data, business intelligence, metrics, and the CORE KPIs every shipper and manufacturing or supply chain professional should know in order to continually improve business practices and reduce overall costs.

Efficiency vs. Productivity: Metrics that Matter…Until They Don’t

synchrono

I keep seeing the word efficiency in the manufacturing media. When we look at the organizations of today, words like efficiency and productivity get thrown around with little understanding of what is required to improve one of these measurements (metrics). Let’s discuss why an efficiency metric is usually not the right metric and what a Lean manufacturing expert does when measuring true value in the supply chain.

Supply Chain Metrics: Make Sure They Are Aligned with Your Strategy!

Supply Chain View from the Field

Many people are talking about Key Performance Indicators, Metrics, Analytics, and other indicators of performance. The importance of selecting the right metrics or “measures” as I prefer to call them, is critical as we all know that metrics drive behaviors. Rather then selecting a plethora of meaningless metrics, it is always better to focus on a critical few, and select them wisely. Step 2 – Develop Metrics and Data Sources.

6 Benefits of Effective a Reverse Logistics System & The 9 Core RevLog Metrics to Track

Cerasis

For instance, a growing number of cell phone manufacturers have established procedures in place for consumers who wish to return an older model and ensure that the device is refurbished or recycled rather than dumped into the local landfill. Importance of Metrics in Reverse Logistics Management. To monitor progress against its reverse logistics management plan, a company needs metrics that measure the financial impact of returns on the firm and on other members of the supply chain.

SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

When I hear companies discussing the implementation of a customer segmentation strategy, I ask a series of questions: Who is your customer? What are you trying to accomplish through the execution of a customer segmentation strategy? Today, there is not a well-defined template on how to build and operate a supply chain defined by customer policy and segmentation strategy. SanDisk’s Journey to Build a Supply Chain Customer Segmentation Strategy.

Take Advantage of Digital Manufacturing to Improve Workforce Productivity

DELMIA Quintiq

Much has been done to improve manufacturing efficiency. As the common linchpin that brings together all manufacturing activities, has this metric improved along with all the investment in new technologies? As a result, this metric is often downplayed or not referenced in the discussion. Digital Manufacturing as an Enabler of Workforce Productivity. 3D Simulation Digital Manufacturing Manufacturing Robotics

Changing the Production Performance Metric

Logility

Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. And finally the fourth phase is to align the production accountability more meaningfully with company strategy. The bad news for this company is that those big, expensive, mass production machines aren’t very good at the high mix, lower volume, flexible manufacturing required for this new market.

Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process

Cerasis

When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). 2: Audit Strategy.

Executing Customer-Centric Supply Chain Strategies

Supply Chain Shaman

I want to understand why some companies outperform on the Supply Chain Metrics That Matter while others do not. About twice a month, companies ask me to review their strategy documents. Frequently, I see the goal of “build a customer-centric strategy” or define an “end-to-end vision to deliver on the customer promise.” It requires a careful execution of strategy and the connection of strategy to execution.” Customer-Centric Strategies.

Changing the Production Performance Metric

Logility

Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. And finally the fourth phase is to align the production accountability more meaningfully with company strategy. The bad news for this company is that those big, expensive, mass production machines aren’t very good at the high mix, lower volume, flexible manufacturing required for this new market.

Take Advantage of Digital Manufacturing to Improve Workforce Productivity

DELMIA Quintiq

Much has been done to improve manufacturing efficiency. As the common linchpin that brings together all manufacturing activities, has this metric improved along with all the investment in new technologies? As a result, this metric is often downplayed or not referenced in the discussion. Digital Manufacturing as an Enabler of Workforce Productivity. 3D Simulation Digital Manufacturing Manufacturing Robotics

The “First Five” Industrial Manufacturing Trends of 2017

Cerasis

Where and how manufacturers make products for Americans will change in 2017. Current industrial manufacturing trends show the new administration is pushing for reshoring among the nation’s biggest manufacturers, and new technologies are revolutionizing how companies respond to growing skepticism and scrutiny by the public and government oversight as well. Manufacturers must adapt to changing demands, or they will become nothing more than a statistic in history books.

4 Strategies to Improve Supply Chain Efficiency for Manufacturing Business Owners

Unleashed

Manufacturers typically perform planning, sourcing (finding suppliers), making (manufacturing), delivering and returns. Below we outline four strategies to improve supply chain efficiency for manufacturing business owners. More successful manufacturers make a commitment to scheduling periodic and effective meetings to give their team members an opportunity to address upcoming logistics situations in advance.

Defining and Implementing an Effective Transportation Strategy

Talking Logistics

An important component of that foundation is defining and implementing an effective transportation strategy – a topic that I discussed with Eric Meister, LeanLogistics’ former COO, in a follow-up episode. Here are some of the valuable insights that Eric shared regarding the path to building an effective transportation strategy: Q: An important component of that foundation is defining and implementing an effective transportation strategy.

Lean Manufacturing: Is it Really Worth It? 16 Big Benefits Say, “Yes.”

Cerasis

Customer expectations of reliable quality and rapid delivery forces today’s manufacturers to either shorten cycle times or lose business. Lean systems have provided a formidable operating strategy for leaders determined to achieve and maintain optimal operational systems and customer satisfaction levels. There are multiple good models for lean manufacturing operations. Who Needs Lean Manufacturing? Lean Manufacturing Planning and Implementation.

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AGCO: Driving a Digital Manufacturing Transformation

Supply Chain Shaman

While many employers would have penalized the employees for tablet breakage , Peggy explored the world of wearables to enable her digital manufacturing transformation. AGCO’s culture of innovation policy deployment enabled employees to pioneer a technology solution for manufacturing. is a publicly held $7B global corporation focused on the manufacturing and distribution of high-tech solutions—tractors, harvest equipment and implements– for professional farmers.

Four Common Challenges Facing The Manufacturing Industry In 2019

IQMS

The manufacturing industry continues to show strong resiliency, shaking off global trade uncertainty, finding ingenious workarounds to its labor crisis, while still innovating new products using design-to-manufacture workflows. 76% of all manufacturers prioritize improving shop floor productivity as their most valuable growth strategy, 1.4 The manufacturing skills gap could potentially leave an estimated 2.4

5 Reasons Why Manufacturers Who Focus on Customer Experience Will Win

Cerasis

Manufacturers have always struggled to know their customers. Unfortunately, this means manufacturers face an even greater challenge, as more customers translate into greater use of customer service. But, our predictions’ post noted how manufacturers are having trouble with transforming customer input into responsiveness and enhancements to the customer experience. But, how do manufacturers turn their focus to the customer experience? Manufacturing

Top 10 Manufacturing Trends For 2019

IQMS

Bottom Line: The top 10 manufacturing trends reflect how manufacturers are planning to achieve their goals of revenue growth, operational improvements, digital transformation, and launching new products and services in 2019. Manufacturers who excel at orchestrating analytics, Business Intelligence (BI), quality management and real-time monitoring to improve manufacturing strategies are growing 10% faster than their peers. to manufacturing value added in 2020.

How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

These metrics would, of course, be aligned and are updated every hour. The metrics are also manual as automatic metric systems cannot retrieve the information at an hourly frequency as these metrics are process inputs and not outputs. For example, if your strategy is to improve Quality, the people in the value stream would own a control chart of heat applied to the product. Specific metrics: process metrics and outcome metrics.

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Manufacturing Disruption is Here. Will Your Company Survive?

QAD

Manufacturers can miss opportunities to adapt due to their lack of speed in responding to disruptive forces, under-investing in new growth areas or applying existing business models to new markets. Manufacturers’ business strategies and production tactics are being affected by “business disruptors,” including changes in the business environment and in the ways products are made. How will Manufacturers Survive Disruption? Adopt a Digital Strategy.

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

Second, they adapt over time as market structures and strategies evolve. We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. The delivery against goals starts with leadership and a clear strategy. Reward teams for cross-functional metrics.

Let’s Fail Forward….

Supply Chain Shaman

While I will know more when I finish the research than I do now, I want to encourage all readers in manufacturing and retail to participate. The Center of Excellence is driving supply chain evolution against an operating strategy. Clarity of the Operating Strategy. They deliver on the operating strategy. I expect to see that where there is clarity in the operating strategy, the Supply Chain Center of Excellence is aligned to deliver on success. Metrics Matter.

Who owns S&OP? by Accenture Strategy Guest Blogger

Kinaxis

S&OP is arguably one of the most cross-functional processes in an organization and requires input from sales, marketing, finance, supply chain, manufacturing and so on. Think about it – in most organizations today, there are so many performance metrics (by functional area), yet not one is common across the business. And certainly there aren’t aligned incentives or common management metrics tied to compensation plans. by Steven J.

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Metrics that Matter: Quality Management

QAD

Quality affects every aspect of manufacturing, encompassing the totality of features, services, customer interactions and promises that comprise a product offering. While many people think of quality as a manufacturing issue, quality should permeate every aspect of the organization, encompassing processes as diverse as order entry, stockroom picking, invoice creation and supplier performance, in addition to production quality. Using Metrics to Measure Quality.

Digital transformation in manufacturing – The accelerators and roadmap for manufacturers

ThroughPut

The relevance of digital transformation in manufacturing. PWC predicts that out of every 2,000 manufacturers, 86% will benefit from cost reductions and revenue gains from their digitization efforts over the next five years. Fortunately, manufacturing is one industry that can easily harness new-age digital technology to deliver greater supply chain efficiency and productivity using smarter, better and safer operations methodologies. Blog manufacturing

Digital transformation in manufacturing – The accelerators and roadmap for manufacturers

ThroughPut

The relevance of digital transformation in manufacturing. PWC predicts that out of every 2,000 manufacturers, 86% will benefit from cost reductions and revenue gains from their digitization efforts over the next five years. Fortunately, manufacturing is one industry that can easily harness new-age digital technology to deliver greater supply chain efficiency and productivity using smarter, better and safer operations methodologies. Blog manufacturing

Digital transformation in manufacturing – The accelerators and roadmap for manufacturers

ThroughPut

The relevance of digital transformation in manufacturing. PWC predicts that out of every 2,000 manufacturers, 86% will benefit from cost reductions and revenue gains from their digitization efforts over the next five years. Fortunately, manufacturing is one industry that can easily harness new-age digital technology to deliver greater supply chain efficiency and productivity using smarter, better and safer operations methodologies. Blog manufacturing

Data and Digitization in Manufacturing

Enterra Insights

Manufacturing has been the lifeblood of the global economy for hundreds of years. Because manufacturers have historically moved factories to regions featuring cheap labor and few regulatory restrictions (sometimes referred to as outsourcing or offshoring), a misconception has arisen about the importance manufacturing to national economies. ”[1] Manufacturing becomes even more relevant to advanced economies thanks to data and digitization.

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