Frequent Manufacturing Performance Measurement Is Key

Technology Remains Under-Utilized as the Performance Gap Widens

BOSTON, July 18 /PRNewswire/ -- According to a new AberdeenGroup research report, manufacturing performance correlates directly to frequency of measurement, yet 84% percent of manufacturing companies are still relying on spreadsheets and ad hoc performance monitoring despite the availability of mature and emerging technologies.

'The Manufacturing Performance Management Benchmark Report' revealed a subtle shift in pressures. Customers continue to demand lower prices; however customers' demand for shorter lead times has now become the number one driver in manufacturing performance management strategies. This report finds far too few commercial IT solutions being utilized, although Best in Class companies are out in front and getting better while poorer performers make little progress, so the performance gap is widening.

"Best in Class companies emphasize interoperability along with price, quality and delivery," says Cindy Jutras, Vice President and Service Director of Aberdeen's Manufacturing practice. "They utilize Lean manufacturing to eliminate waste, accelerate real time data collection and leverage workflow technologies and alerts. Better performance also correlates directly with frequency of measurement."

Jutras offers manufacturers specific recommendations for companies looking to improve performance management:

    * Measure Key Performance Indicators (KPIs) more frequently -- quality
     deviations should be monitored in real time; operational metrics such as
     shipment schedule compliance should be measured daily
    * Balance cost reduction efforts against customer satisfaction -- as
     acceptable customer service levels are achieved, work specifically to
     reduce inventory levels
    * Use available technology for data collection, operational efficiency and
     visibility -- integrated manufacturing and operations intelligence
     platforms, as well as analytics and other business intelligence tools

More than 145 companies participated in the quantitative study, including Delta Airlines, Coca Cola, IBM and Sara Lee.

This report has been made available to the public due to the underwriting of: Activplant Corporation, Informance International, Inc. and Siemens Energy & Automation, Inc. For a complimentary copy please follow this link: http://www.aberdeen.com/link/source.asp?cid=3166&pid=PRCJ071806

AberdeenGroup, Inc. provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen's benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives and the solution providers who serve them.

    For more information, visit 
http://www.aberdeen.com or call 617-723-7890.

    Contact:
    Cindy Jutras, VP & Service Director, Manufacturing Research
    AberdeenGroup
    617-854-5247, 
Email Contact

Web site: http://Www.Aberdeen.com//




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