Metrics, KPIs, and Process Insights –Implementing High Performance MIA Conversation with John JackiwMESA Metrics Committee...
 Increased number if SKU’s or variations produce What are the business leaders doing? Do you want lead or Lag in your b...
Three Layered ModelCorporateFinancialsAggregated Financial& Operations MetricsOperations-level KPIs &Dynamic Performance M...
Manufacturing companies typically havedisconnected operations and finance. RCA is aTool that brings together real-time sol...
What is RCA??Action Relies on Resource Consumption Accounting
Demand driven planning with capacitysensitivity Built with RCA (ResourceConsumption Accounting)methodology as a foundatio...
Corporate HeadquartersMANAGERIAL ACCOUNTING –MULTI-LEVEL P&L7Plant LaborDirectMaterialsCapacity240 Hrs.Capacity240 Hrs.Cap...
The Storyboard For Illustration ONLY
“Progressive Insights” Drive Needed Changes© 2011 Atos Origin. All Rights Reserved.
Questions?A Conversation withJohn JackiwAlta Via ConsultingLink to Recorded Webinar
John JackiwTeam Leader, MESA Metrics CommitteeBusiness Development ManagerAlta Via ConsultingTel: (708) 638-5206Email : JJ...
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Metrics, KPIs, and Process Insights – Implementing High Performance Manufacturing Intelligence

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John Jackiw discusses the optimal strategies to identify and organize the right metrics and use the right analytics to produce the actionable information needed for best-in-class performance.
As recent MESA studies show, the best performing companies most aggressively use manufacturing process metrics to guide decision making. Informed operations and management decisions will push both routine operations and strategic activities to the highest performance levels.
High performance management depends upon actionable intelligence based on the right information. Producing that information depends upon selecting the right metrics and identifying the right data sources.
The first step is to review the available metrics as process parameters in general and determine which are Key Performance Indicators (KPI) in particular. The second is to determine which data is needed. While the easy choice is to use accessible existing data, a more thorough analysis can direct the company to seek out the data that is really critical to understanding process performance.
Our Presenter:
John Jackiw is Business Development Manager at Alta Via Consulting. He is an active member of MESA International where he is a founding member of the Global education team, a MESA Authorized Instructor (MAI), and serves on the metrics committee as team leader and project manager of the MESA publication “Metrics Framework and Guidebook 2nd Edition”.
Recording - http://bit.ly/1036YlQ

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Metrics, KPIs, and Process Insights – Implementing High Performance Manufacturing Intelligence

  1. 1. Metrics, KPIs, and Process Insights –Implementing High Performance MIA Conversation with John JackiwMESA Metrics Committee Team LeaderAlta Via Consulting
  2. 2.  Increased number if SKU’s or variations produce What are the business leaders doing? Do you want lead or Lag in your business Free Summary Version of “Pursuit of PerformanceExcellence” available through MESAhttps://services.mesa.org/ResourceLibrary/ShowResource/fc2c93d8-00f9-472c-99cb-15c342ec8b7cWhat is Business Doing to Stay Ahead
  3. 3. Three Layered ModelCorporateFinancialsAggregated Financial& Operations MetricsOperations-level KPIs &Dynamic Performance Metrics First-pass yield Process capability per plant (CpK) Scrap/rework as percentage of sales Customer reject rate (PPM) Warranty costs Manufacturing cycle time Overall equipment effectiveness (OEE) Customer fill rate/on-time delivery Cash Flow Net operating profit (value of shipments lessmaterial & mfg cost) Productivity in revenue per employee Earnings before interest, taxes, depreciationand amortization (EBITDA) Customer Satisfaction ROA/RONA Labor cost per unit Percentage planned vs. emergencymaintenance work orders Hours of overtime per week• Average days WIP inventory• OSHA-reportable incidents/year• Etc, etc, etc…IncreasingaggregationExternalFinancialAccounting/ReportingConventionsInternalManagementAccounting
  4. 4. Manufacturing companies typically havedisconnected operations and finance. RCA is aTool that brings together real-time solution,together with a quantity-based - cause andeffect methodology.Unlike MES or ERP packages alone, our solutionleverages both worlds and enables betterdecisions for both production and finance.Solution Summary
  5. 5. What is RCA??Action Relies on Resource Consumption Accounting
  6. 6. Demand driven planning with capacitysensitivity Built with RCA (ResourceConsumption Accounting)methodology as a foundation Easily understand the resourcesyour line/area are consuming. Empower your managerswith common understandingQuantity-Based Approach
  7. 7. Corporate HeadquartersMANAGERIAL ACCOUNTING –MULTI-LEVEL P&L7Plant LaborDirectMaterialsCapacity240 Hrs.Capacity240 Hrs.CapacityUnlimited1 lbs. per unit4 hrs. per unit2 hrs. per unit80 hrs. per month80 hrs. per month30 hrs. per month80 hrs. per monthPlantMaintenanceCalculated basedon production$300$1.25per unit$200$0.83per unit$10per unitProportional CostFixed Cost7Corporate P&LPlant P&LProduct P&LMaterialsProportional CostFixed CostxxxxxxIdle LaborFixed - TrainingxxxxFixed HQ Reporting xxRevenue xxProduct Margin xxPlant Margin xxCorporate Margin xxRCA Institute All Rights ReservedAlignment Achieved
  8. 8. The Storyboard For Illustration ONLY
  9. 9. “Progressive Insights” Drive Needed Changes© 2011 Atos Origin. All Rights Reserved.
  10. 10. Questions?A Conversation withJohn JackiwAlta Via ConsultingLink to Recorded Webinar
  11. 11. John JackiwTeam Leader, MESA Metrics CommitteeBusiness Development ManagerAlta Via ConsultingTel: (708) 638-5206Email : JJackiw@altavia.com
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