Real-time operational dashboards in Smart Manager MOM/MES can boost operational excellence by increasing analytical engagement with the plant floor and by facilitating better day-to-day decision making. The following knowledge brief explains how organizations can get there.
Manufacturing analysts should always think long-term, but they often want to know, “How am I doing right now?” Real-time operational dashboards in Smart Manager MOM/MES can answer this question by increasing analytical engagement with the plant floor, and facilitating better day-to-day decision making. Aberdeen Group research reveals that 47% of organizations believe they need to become more data-driven to remain competitive. However, becoming more data-driven shouldn’t mean engaging more data, but rather engaging the right data. At the operational level, many organizations claim they want to become more data-driven, but are analyzing data on a monthly or quarterly basis, which is insufficient. To be truly data-driven, they should be engaging data daily. Operational (or tactical) dashboards enable users to display necessary metrics to proactively manage − and react − on a daily basis.
Pressures for Operational Excellence
Operational analysts face a plethora of pressures. Chief among these is the constant drumbeat for improved operational efficiency (Figure 1).
While the need to reduce production costs is constant, these analysts must also find ways to produce truly differentiated products that meet high-quality standards. Another challenge they face is to improve their ability and agility to respond flexibly to business demand. At the operational level, this starts with gaining the visibility necessary to optimize production. This is where Smart Manager MOM/MES operational dashboards excel.
71 percent of real-time dashboard users have the ability to collect, plan and schedule, aggregate, analyze, and respond to real-time manufacturing events.
In its 2017 MOM/MES and Manufacturing Operations Benchmark Study, Aberdeen Group spoke to 223 organizations on the cutting edge of manufacturing. Results revealed that 47% of Best-in-Class companies handle plant data via real-time / event-driven dashboards with role-based data accessibility, navigation, aggregation, or drill down. This compares with a usage rate of only 27% among All Others. Further, these real-time operational dashboard users were 41% more likely than non-dashboard users to be attuned to a specific market pressure: the increasing pace of innovation/ changing business models.
Achieving Operational Visibility
According to Aberdeen Group’s research, dashboard users are succeeding operationally, because they achieve levels of real-time visibility that is twice as high as non-dashboard users.
Because of this visibility, 71 percent of real-time dashboard users have the ability to collect, plan and schedule, aggregate, analyze, and respond to real-time manufacturing events − nearly three times the rate of non-users.
If you can’t measure it, you can’t improve it…
(Peter Drucker, Management Consultant)
Acting on Operational Insight
With visibility comes insight, and insight spurs action through problem solving and production optimization. Operations analysts engage dashboards to spot inefficiencies and recognize small problems before they develop into bigger ones. The data, gleaned from these dashboards, also offer opportunities for improvement and course correction to enhance productivity.
Smart Manager’s Loss Management Dashboard allows the analyst to identify, quantify and classify losses, drill into the underlying data to understand where it originates from and what steps to take to eliminate it. Every lost hour costs the average manufacturer around $35 in labor and overhead and around $15 per hour in margin. Even a small factory with just 10 machines will often lose several thousand hours in any given month. Consider the strategic, financial, operational and technological impact of this and you start to understand why world class manufacturers place such value and importance on MES today.
Smart Manager’s dashboards provide real-time valuable insight into the performance people and machines. For your people or employees there is an established key performance indicator (KPI) known as Overall Labor Effectiveness (OLE). For you machines or equipment there is another KPI known as Overall Equipment Effectiveness (OEE). Depending on your type of business one or the other will take priority but both are important. The most interesting thing though is not that you operate at 40% OLE or 60% OEE (typical performance). It is to understand why these are not 100%. In other words where was the loss?
In the end, operational excellence comes down to increased agility and speed in operational decision making. Aberdeen research suggests that use of real-time dashboards positively facilitates better decision making. Over the last two years, real-time dashboard users improved their time-to-decision at a rate 2.5 times greater than All Others. Users increased their time-to-decision by 15%; non-users increased their time-to-decision by only six percent.
Meaningful Analytical Engagement Leads to Operational Excellence
In summary, operations is the delivery mechanism of the manufacturing enterprise. It is the engine that drives the work in production. Dashboard users in this area don’t necessarily need or want one with high-level metrics and a strategic outlook. Instead, users need the nitty-gritty details of what’s happening within a business right now, rather than a long-term vision. Smart Manager MOM/MES dashboards deliver the visibility and capabilities that enable operations to become more data-driven and analytically-engaged.
In turn, this allows its front line managers to optimize manufacturing production. They do this by engaging information in a way that matches the demands of their job and lets these analysts continually strive for operational excellence.
Who is LYNQ?
LYNQ is a global provider of Manufacturing Execution System (MES) software for small to midsize manufacturers across a variety of industries. Our Smart Manager platform connects with Macola ERP to offer a unique level of delivery, cost and quality control of manufacturing operations for job shop, batch production, production line and mixed mode environments. Using latest technologies, the solution can effectively schedule, publish, collect, track, analyse and help to improve both human and machine execution of orders on the shop floor, providing faster delivery and lowering your production costs.