In a recent blog post, Automation World editor in chief, Gary Mintchell, commented on the relevance of findings in the contemporary report ‘Pursuit of performance excellence: business success through effective plant operations metrics’. Released by MESA International and industry analysts Cambashi, the primary finding indicates that organisations that integrate metrics into the operational decision-making processes perform better than those who do not: “companies that improve on multi-faceted metrics such as overall equipment effectiveness are much more likely to improve on total financial efficiency.”
The primary research revealed that significant improvements in financial performance are the result of an integrated effort in the areas of plant performance metrics programs and new IT applications. Based on a survey of a variety of manufacturing and production companies, the results illustrate how the business processes and software technologies in use today correlate directly to dramatic business performance improvement.
What caught my eye was the way these findings resonate so closely with an article running in this issue of SA Instrumentation and Control. In ‘Dynamic performance measures’, Invensys fellow, Peter G. Martin, writes of the need to measure industrial business in real-time. The point is that the nature of a number of variables key for efficient manufacturing has become vastly more dynamic over the last 10 years; some of them now even change multiple times in an hour.
The trick to simplifying the complexity is the understanding that not all business variables have the same frequency. It turns out that there are only a few critical variables experiencing less than monthly fluctuation – energy costs, material costs and the production value of the operation are the ones to watch. What is necessary for success is the ability to measure each of these in a time frame appropriate to the frequency change associated with current operational strategy. From there, the successful organisations are able to produce quality decision-making results presented to management in the form of an ordered priority (more in ‘Dynamic performance measures’).
Extrapolating a Jim Pinto insight shared during his visit to South Africa last year – forecasting is the ability to pick up the trends that are advancing with the greatest momentum – it seems to me that these techniques of dynamic performance measurement are going to be with us for quite some time. Considering the importance of new ideas like manufacturing operations management, enterprise manufacturing intelligence and the software dashboards that underpin the delivery associated with these measures, it is no accident that SAI&C has decided to increase the frequency of its feature ‘IT in manufacturing’ to monthly. Vendors, be sure and take the opportunity to keep our readers informed on the importance of ideas like effective plant operations metrics in management decision making for better manufacturing performance.
X-Change 2012 User Conference
Sun City 15-18 April is the place to be for this year’s Invensys Wonderware User Conference. As always, one of the highlights is the opportunity to network with southern Africa’s industrial professionals and exchange ideas either during one of the formal workshop sessions, or after hours at one of the more relaxed social events. This year’s conference will focus on improved operational agility and the Invensys Operations Management choice of solutions. It promises an action packed three days of beneficial information sharing coupled with the all-round enjoyable leisure activities on offer at the Pilansberg resort. See you there.
SAIMC broadcast – watch this space
There have been some interesting developments at the SAIMC over the past few months. A new energy has permeated the organisation and it is great to see the commitment from council as it tries to identify new ways to add value through communication with members. Hand-in-hand with this is a desire to rebrand the organisation with the values needed to go forward as the modern ‘happening’ place for C&I professionals to network and be seen. Current president, Johan Maartens, has identified the need to get the organisational goals out there and give members the opportunity to generate the feedback that council needs to shape this thinking into the future. To facilitate this, look out for details of an SAIMC webinar that we will be hosting on 18 April. Register and be heard, it is your opportunity to have your say – anonymously if you wish. More details soon or contact [email protected]
Steven Meyer
Editor: SA Instrumentation & Control
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