Advanced Manufacturing: Metrics that Matter - Linking Business, Engineering, and the Modern Manufacturing Operation

Thursday, October 25, 20122:00 –3:00 pm ET

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Advanced Manufacturing: Metrics that Matter - Linking Business, Engineering, and the Modern Manufacturing Operation

Julie FraserSubject Matter

Expert,

Manufacturing

2

Brian GrovesDirector, Product

Mktg

Deltek

Mark Correll Dir Prod Sys

Optimization

Rockwell Collins

Operations

Michael KauffmanGM, Rotating Parts

Center of Excellence GE

Aviation

Advanced Manufacturing: Metrics that Matter - Linking Business, Engineering, and the Modern Manufacturing Operation

Brian GrovesDirector, Product Mktg

Deltek

3Copyright 2012, Deltek, Inc.

ProjectManufacturing

Human Capital Management

Project Management

Financial Management

Supporting Complex, Discrete Manufacturers

Winning More Business

Reducing the Cost of Compliance

Increasing Project Visibility

Improving Cash Flow

CRM and Capture ManagementTeaming SolutionsMarket Intelligence

Business Performance & Integrated Program Management

Know More and Achieve More

Win More

Do More

Copyright 2012, Deltek, Inc.

The Data Model

Financial Statements

Invoicing, Costing, and Procurement

Rules

Materials

TimeProcurement

InvoicesEvery transaction is connected to an account, an organization, and a project

Payroll, Employee Management, and

Benefits

Reporting

Manufacturing

Regulatory Requirements

Every transaction has project specific invoicing, accounting, and procurement rules applied

Compliance and Audit

Copyright 2012, Deltek, Inc.

Advanced Manufacturing: Metrics that Matter - Linking Business, Engineering, and the Modern Manufacturing Operation

Julie FraserSubject Matter Expert

Manufacturing

6Copyright 2012, Iyno Advisors

People Want Speedier Metrics

7

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rarely/ never

Monthly or less

Weekly

Daily

End of shift

Within a shift

Real-time (minutes or less)

Satisfaction with Staff Speed to See Metrics by Timing of Availability

Yes: typically fast enough: satisfactory No: typically not fast enough: unsatisfactory

Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International

Metrics drive behavior, actions & outcomes so FASTER = BETTER

Copyright 2012, Iyno Advisors

Challenges in Timeliness

8

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Extremely Reasonably Not very Not at all

How necessary is it to have an analyst involved tocleanse the data prior to analysis and display?

Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International

Copyright 2012, Iyno Advisors

Differences of Opinion about Issues

9

0%

10%

20%

30%

40%

50%

60%

70%

Senior executive / C- or VP-level executive

Staff / Employee

What is the major problem causing slower or less than ideal frequency of metrics display of results?

Lack of management commitment

Lack of will to change

IT challenges

Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International

Copyright 2012, Iyno Advisors

Types of Metrics Business Movers Improve Dramatically

10

• Predictive/preventive

• Translate operational results into financial terms

• Include suppliers & partners

• Holistic/multi-faceted

• Non-value added time

0%

5%

10%

15%

20%

25%

Suppliers' manufacturing yield

or test results

Overall equipment effectiveness (OEE)

Portion of respondents who improved by 10% or more on

key operational metrics

Business Movers Others

Source: Pursuit of Performance Excellence:Business Success through Effective Plant Operations Metrics

© 2012 Cambashi Inc. and MESA International

Copyright 2012, Iyno Advisors

MES/MOM Use Correlates to Success

11

0% 5% 10% 15% 20%

Manufacturing cost as % of revenue

EBITDA

Higher portion of MES Users achieved at least 10%improvement on key financial metrics

MES/MOM Users

Others

Source: Pursuit of Performance Excellence: Business Success through Effective Plant Operations Metrics © 2012 Cambashi Inc. and MESA International

Copyright 2012, Iyno Advisors

To access the rest of this webinar and the GE and Rockwell Collins presentations, visit Aviation Week.

http://events.aviationweek.com/webinars/index.htm

This site provides an audio recording of the entire session plus the Q&A session and follow-up responses to audience questions.

Julie Fraser, Iyno Advisors 508-362-3480 julie@iyno.com

Brian Groves, Deltek 703.995.2445 briangroves@deltek.com

Copyright 2012, Iyno Advisors