A better way to manage change and transitions in project manufacturing
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The document discusses the challenges and opportunities in managing production changes within project manufacturing, emphasizing the need for a capable manufacturing execution system (MES) integrated with business systems. It highlights the benefits of MES, including improved production efficiency, cost control, and enhanced visibility of project status, which can lead to better decision-making and increased profitability. The importance of managing transitions effectively is underscored as critical for success in project-based manufacturing environments.
A better way to manage change and transitions in project manufacturing
- 1. A Better Way to Manage Change and Transitions Iyno in Project Manufacturing Advisors By Jeffrey Hill and Julie Fraser, Iyno Advisors Project manufacturing presents unique challenges and opportunities for managing production changes or transitions. In operations, these can come about as production shifts from one product to another, or as a product changes, or even as triage occurs in maintenance, repair and operations (MRO). Production is not the only tricky part of the change process; the accounting, materials management, and reporting are equally important. They all need information flows between them to stay in lock step. Thus, managing transitions relies on having a capable Manufacturing Execution System (MES) in the plant that can integrate with business systems. An ideal system would enhance the management of all phases of the manufacturing process, provide the ability to track design changes and changeovers down to the project and component level, and allow detailed and timely manufacturing information to be integrated with financial and business resource planning to drive better decisions throughout the organization. Business Context The MESA International research study report Pursuit of Performance Excellence shows that manufacturers who use MES systems are far more likely to have achieved a 10% reduction in the time to transition from one product to another (Figure 1). The same study shows users of MES are also more likely to increase the average contribution margin for each unit made, a major component of manufacturing profitability, by Time to make 10% or more per year. Simply changeovers or put, companies that manage transitions MES / their production process using improved >10% MOM User MES have tighter control over per year production changes and costs. Average unit Other They can act more quickly to contribution satisfy transition needs too. margin improved >10% Transitions are a critical aspect per year for any project-based 0% 50% 100% 150% manufacturer to succeed. Average of Responses Typically projects have many changes from design, customer Source: Pursuit of Performance Excellence or material shifts. Moving © 2012 MESA International and Cambashi Inc. between multiple projects is Figure 1: MES users are far more likely than others to also quite challenging. improve more than 10% on both production and business metrics. © 2012 Iyno Advisors www.iyno.com
- 2. A Better Way to Manage Change and Transitions in Project Manufacturing There are many issues to consider. These may include: Revisions to designs over a forty or fifty year production lifetime in aviation. Each production run is essentially a custom project requiring new manufacturing tools and methods. Project visibility, progress reporting, and accountability for government contracts, with audits and accountability across owned and subcontracted operations MRO operations where initial operations steps dictate quick action in all subsequent steps. The common element among these environments is the need to control costs, improve processes, and maintain or enhance quality to differentiate in a highly competitive environment. Companies need production information to thrive, and the system to provide that is MES. Key Benefits of MES Some of the benefits of using MES integrated with ERP include: Enhancing flow of work by making routings and work instructions available online for production, quality and maintenance personnel Handling transitions through always up-to-date job materials and checking for certifications and training of operators and technicians Enforcing streamlined production processes to support lean and continuous improvement efforts Eliminating reliance on paper documents on the plant floor Improving predictability by with standardized approaches to all phases Making current status of a complex production run visible to production and business managers at any time. Increasing control and transparency through integrating production operations with accounting, purchasing, inventory control, billing and cost and expense allocation. Increasing availability of performance metrics supports continuous process improvement by supplying production and business managers with both an historical and current view of production projects. MES is known for providing a platform to increase the overall efficiency of production operations. It also provides the capabilities and the tools needed to manage the rapid transitions common to project manufacturing. Integrated with project-oriented business systems, it can catapult performance in transitions and the business to new levels. Iyno Advisors Iyno Advisors combines experience, intuition, intellect, and research to focuses on how manufacturing and production companies and their network of partners can best benefit from software applications and services. www.iyno.com 508.362.3480 The Sponsor: Deltek Deltek is the leading global provider of enterprise software and information solutions for professional services firms and government contractors. For decades, we have delivered actionable insight that empowers our customers to unlock their business potential. 15,000 organizations and 2 million users in over 80 countries around the world rely on Deltek to research and identify opportunities, win new business, optimize resources, streamline operations, and deliver more profitable projects. Deltek – Know more. Do more.® www.deltek.com 800.456.2009 © 2012 Iyno Advisors 2 www.iyno.com