Up Time Magazine - December 2008/January 2009 - (Page 13) operation. This information can then a database that provides real be presented on a performance dashtime input data. Fortunately, Dynamic Performance Measures board contextualized to each person’s in most industrial plants, such responsibility. These are the DPMs of a database is readily available the frontline operators. in the form of plant sensors. 1. Line Performance/OEE Dynamic Plant sensors continually 2. Energy Costs Performance 3. Contribution Margin Developing these DPMs requires a real measure physical and chemi4. Perfect Order Measures time computer engine that has builtcal properties, such as flow, Business Guidance in modeling capability. This is exactly level, temperature, pressure, what a standard automation system speed and composition of is. These DPMs must then be aggranprocess variables in real time. Manufacturing dized to provide performance meaStrategy They are typically accessible sures in real time for every other funcby the installed automation tion within the plant. This can easily systems and are used to monContribution Margin OEE Real Time Real Time be accomplished by using a standard Energy1 Cost Cycle Time itor and control the process. Accounting KPI’s Energy2 Cost Waste/Production process historian which can also deSince both accounting and Material1 Cost First Pass Yield Production Value velop hourly, shift, daily, weekly and operational measures can monthly accumulations of the DPMs. be defined via equations, an The availability of a comprehensive, experienced engineer can dereal time, bottom to top performance velop models of the equations measurement system provides the poin the automation system and tential to drive improved performance Production Process determine which sensors can in a number of ways previously unbe used to populate the modavailable to industrial operations. The els needed to calculate the Figure 1 - Creating Dynamic Performance Measures basic value improvement that can be DPMs. The net result is a set realized through better individual perof performance measures for step is measurable, should be developed for formance of frontline personnel, who each process unit or work cell in the plant. each objective. The measures that fall out of can immediately see how their actions impact In most plants there are simply too many mea- the action steps are the strategic performance plant performance, has been proven to prosures for any one frontline person to deal with measures of the plant. These measures can be vide huge performance gains. However, this in real time. When working in real time envi- decomposed through the physical areas, units is only a starting point. ronments, such as driving a car or operating and major assets of the plant to determine a plant, ergonomic research has determined the most important measures for each pro- A New Perspective on Asset that most people can only consider up to four cess unit according to the current strategy. Performance Management competing measures at a time. The question This can then be used to prioritize the real is which four measures are most appropriate time KPI and accounting measures for each The availability of DPMs enables asset perforfor each person in the operation. This can person that impacts the performance of the mance management in ways previously unavailable. As previously mentioned, be determined by taking traditional asset management inthe current manufacturing volves operators driving the assets to strategy into consideration. Strategic Decomposition maximize asset utilization and mainDr. Thomas Vollmann deStrategy tenance maintaining the assets to veloped a strategy analysis drive maximum asset availability. It approach that can be very Corporate Vollman Triangle is important to understand that neihelpful in determining the Action Measure ther asset availability, nor asset utiliDPMs for each person in the zation, is a measure of the business operation. The Vollmann Division objectives of any plant. Since they Triangle diagram (See Figure are inverse functions, operators and 2) is helpful in understandmaintenance teams are frequently at Plant ing his approach. He points odds with each other. So, in essence, out that every plant should traditional performance measurement be working to a strategy Area systems tend to discourage cooperadesigned to maximize the tion and collaboration. Unit economic value of the plant output within the external It’s quite useful to use an analogy and internal environment in from the world of sports since nearly which the plant is operating. all professional sports are perforEach manufacturing strategy Production Process mance-driven. In automobile racing, should be defined by a set of the driver is analogous to the operaactionable strategic objecFigure 2 - Using the Vollman Triangle to Apply tors in industrial plants and the pit tives for the plant. An action Strategic Decomposition Process crews are analogous to the mainteplan, in which each action www.uptimemagazine.com 13 http://www.uptimemagazine.com
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