Manufacturing Today - May/June 2017 - 13
MICHAEL MANTZKE | COLUMN BY agile. By using key performance indicators and staying on top of fluctuations, manufacturers can make decisions strategically about their next move forward. Manufacturing metrics matter Numbers are a manufacturer's best friend. Not surprisingly, the metrics they provide are getting the attention of manufacturing budgets everywhere. When a company makes the decision to start effectively measuring, analyzing and improving manufacturing metrics, it is committing to an enormous job - one worth every bit of time, capital, and effort. The outcome aligns metrics to business goals systematically. Metrics eliminate some uncertainty, increase visibility and offer a real shot at gaining a competitive advantage. Here's why: * They help cope with uncertainty - The only apparent trend in manufacturing seems to be ongoing volatility, which translates into uncertainty - a condition from which all supply chains suf- fer. One approach manufacturers take to diminish uncertainty is to increase their agility. But, agility looks different to every manufacturer, so it helps when they understand the nature of the uncertainties they anticipate. Remember, what can't be measured, cannot be managed, so again it comes down to metrics. If a company plans to confront uncertainty by being more agile, then it's time to establish some agility metrics. * They increase visibility - Analytics (or metrics) are manufacturers' window to what is possible, given their situation. For example, the increased visibility might tell a manufacturer which product lines will yield the lowest margins. Or, it might signal what can be done to help drive sales revenue, or highlight which supplier should be used to keep the supply chain flowing smoothly. The possibilities are endless - from improving product development to optimizing the supply chain. * They produce a competitive advantage - Manufacturers that invest in data collection reap a definitive advantage as long as they're equipped to use it wisely. Think of the companies out there currently collecting mounds of data, yet failing to use it for anything besides, perhaps, tracking the flow of production. In order for manufacturing metrics to offer a competitive advantage, choose the metrics carefully, know that the right system is in place, and hire the right individual to be there to interpret the data's significance and relevance. Along with understanding numbers, it is important for data analytics professionals to have the skills to take the numbers and present them to others in a way that reveals meaningful truths. Jump on the metrics bandwagon One might ask, "Why doesn't every manufacturer jump on the metrics bandwagon?" Those who are ready to let go of the reactive gut instinct that drives decisions are showing interest, but the real impact begins when there is a true commitment to the process. Regardless of market activity, industry volatility, or even adapting to a new president's platform, sound, accurate data are now an essential means for surviving in this world market. By drawing on this metrics-driven visibility, manufacturers have carte blanche to the ultimate tool - real time information. mt CEO Michael Mantzke and COO Robert Jonas are with Global Data Sciences, Inc., headquartered in Aurora, Ill. The company provides scientific, data-focused approaches to developing and executing sound strategies to increase company value in the global environment. Areas of expertise include global operations, process and procedure optimization, systems integration and optimization, and cybersecurity and data forensics. For additional information, please call 630-299-5196, visit www.globaldatasciences.com, or email info@globaldatasciences.com. MAY/JUNE 2017 manufacturing-today.com 13