Q: What is the current state of business performance management in manufacturing?
A: There are some areas that are pretty obvious, such as the pervasiveness of quality programs — for example, Six Sigma. Standardization of work and process, and measurement of such, exists within the majority of manufacturing organizations we are exposed to.
Q: Which technologies are essential for improving operational and overall business performance?
A: Any technology that supports the organization’s activities and tracks that activity in order to measure performance can be considered essential. Almost all organizations at this point have connection — that is, e-mail, network, and Internet — and capture and calculation services — such as inventory and accounting. The next evolution of technology is to focus the activities and calculations on the processes being executed. This is essential to drive performance management across the organization because it breaks down departmental barriers.
This alignment of process and technology facilitates performance improvement and takes the guesswork out of producing metrics reports.
The key to improving operational and enterprise performance is having a strong, repeatable process in place that achieves the desired gains. By developing the process first, the organization will be able to identify technologies that specifically suit the needs of the process.
Q: What are the top business drivers behind manufacturers’ performance management efforts?
A: The top business drivers are always going to be compliance and profitability. Especially in this economy, organizations can no longer rely on increased sales for increased revenue. To achieve agility and consistent performance improvement requires the implementation and enforcement of repeatable processes. If the process is measurable and managed, then improvements can be clearly identified and proven.
The benefit of this approach is that it will improve performance that will contribute to the bottom line; it will also make it easy to stay in compliance with corporate and governmental regulations.
Q: What are the business barriers that companies face?