Do you know MESA ? Manufacturing Metrics that Matter MESA unConference May 5, 2014 Platinum Keystone Sponsors Gold Keystone Sponsors

The power of knowing what MESA KNOWS Copyright 2014, MESA International Format for this Session What is an Unconference? MESA Content to start discussion MESA Working Group hot topics Discuss your questions and expertise Create action items for MESA Learn from each other Experience what MESA Knows!

The power of knowing what MESA KNOWS Copyright 2014, MESA International Introductions Matthew Littlefield President, LNS Research John Jackiw Business Development Manager, MAI & Metrics Committee Chair

The power of knowing what MESA KNOWS Copyright 2014, MESA International Introduction to MESA International MESA is… …building bridges-of-understanding from the Plant to the Enterprise …to drive clarity on the role and value of modern Information Technologies in production operations

The power of knowing what MESA KNOWS Copyright 2014, MESA International How MESA Delivers Speaking with the Voice of Industry’s Practitioners Peer -to- Peer Global Education Program Points -of- View MESA International: Building Bridges-of-Understanding from the Plant to the Enterprise

Metrics Working Group People with passion for manufacturing and making it count B2MML & BatchML GEP classes – Dennis Brandl Metrics Guidebook Third Edition – John Jackiw Research Study – (LNS Research): Matt Littlefield, Greg Goodwin, Mark Davidson ROI/Justification Working Group – Darren Riley Metrics Maturity Model – David McKnight (Part of the WG 9 Metrics Standard) ISO/TC 184/SC 5/WG 9 Metrics Standards (ISO Standard #22400) – Sachin Karadgi KPI effectiveness and Barriers – John Horst Gartner and MESA Collaboration – Darren Riley Time in State White Paper – Gerhard Greeff

©LNS Research 2014 Manufacturing industry research firm that helps clients innovate and achieve Operational Excellence… People, Processes & Technology Research & Consulting Areas:  Enterprise Quality  Sustainability / Energy Management  Manufacturing Operations Management  Environment, Health & Safety Differentiators:  Experienced analysts  Primary research – large data sets  Social research model  Interactive analysis & data visualizations  Deep industry executive contacts About LNS Research -

Research Sponsors

Research Objectives Review highlights of 5 month research study Understand the average annual performance improvements for metrics categories – how do you compare? Explore relationships between operational metrics and financial performance metrics See which enterprise and manufacturing software applications are being used by improvement leaders Uncover how role-based dashboards are being utilized to support metrics programs today Anticipate the impacts that manufacturers believe new technologies like mobile, big data and cloud will have on metrics programs

Research Demographics 214 Respondents – comparing 2012 to 2013 metric improvements Compared trends from previous bi-annual surveys

Trends & Impacts of Changing Business Conditions # of product variants increased from 62% in previous survey to 71% Those who improved % of successful NPIs are doing a better job at OTCS (Improvements of 19.1% versus 12.5% overall) Those who introduced more complex products are having more difficulty with inventory, with average annual improvements of only 4.1% versus 7.8% overall Webcast Question: How do you define a successful New Product Introduction (NPI)?

Average Improvements: Categories/Sets of Metrics Webcast Question: Which Operational metrics are having the most impact on financial performance?

Relationships: Operational & Financial Metric Performance Webcast Question: Regarding the impact on OEE, which factor (quality, performance, or availability) was most affected?

Top Manufacturing Software Applications Deployed In comparison to previous survey: –More manufacturing software applications implemented –ERP grew from 67% to 74% –Data Historians grew from 39% to 42% –MES grew from 35% to 40%

Relationships: Software Use & Performance Improvements Webcast Question: What % of respondents indicated that they are planning to implement mobile technologies into their facilities?

Role-Based, Performance Dashboard Capabilities In comparison to previous survey: –Overall usage % did not change –Information speed & functionality increasing

Frequency of Role-Based, Performance Metrics In comparison to previous survey: –Only 17% of Operators in previous survey were seeing performance information in real-time versus 19% and 26% –Seeing performance information within a shift has increased from 13% in previous survey to 15% –Operations Managers are highest role seeing performance information within one day or sooner at 65% –Above is almost double when compared to previous survey –This indicates stronger engagement and involvement of Operations Managers

Anticipated Impacts of Cloud Technology on Metrics Programs 37% are still unsure Lower TCO message well understood at 39% Unburdening the IT organization at 37% From separate LNS Research: –50% of manufacturing software providers are already offering some cloud-based offerings –Over 90% of are investing in cloud for future products

Anticipated Impacts of Mobile Technology on Metrics Programs Virtually all manufacturing software providers have some Mobile application(s) available, and with more on the way Anticipate that Plant Supervisors and Maintenance will be Mobile ‘self sufficient’ Anticipate that Plant Managers will do Mobile performance management

Anticipated Impacts of ‘Big Data’ Technology on Metrics Programs Webcast Question: Is there a split between companies that will take advantage of 'big data' on the business vs. the manufacturing side?

The power of knowing what MESA KNOWS Copyright 2014, MESA International Contact Information Matthew Littlefield President, LNS Research John Jackiw Business Development Manager, MAI & Metrics Committee Chair

The power of knowing what MESA KNOWS Copyright 2014, MESA International Why MESA? Global community for improving Operations Management with IT Best practices & guidance to drive productivity & profitability Global Education Program raising competency for production IT success Facilitate innovation for real-time Plant to Enterprise (P2E) integration Be heard and drive industry forward Join the conversation at:

The power of knowing what MESA KNOWS Copyright 2014, MESA International To Improve Your Success…

The power of knowing what MESA KNOWS Copyright 2014, MESA International MESA’s Working Groups Metrics Working Group Founded in 2005 Focused on how manufacturers successfully measure performance and improve it Open for new members (must join MESA to participate) Partnered with LNS Research and released “Metrics That Really Matter” research in April 2014 Chaired by John Jackiw, MESA GEP Authorized Instructor & Project Manager, Alta Via Consulting