Survey says metrics that matter aren't always measured

At its recent conference, the Manufacturing Enterprise Solutions Association (MESA) International discussed at a press event the findings of its new study, Metrics for Major Initiatives. The second phase of the metrics project, begun more than a year ago, focused on three aspects of its new process model: lean, total quality, and “real-time enterprise” (RTE).

“A lot of people are pursuing lean and total quality—some RTE,” says Julie Fraser, principal with Cummaquid, Mass.-based Industry Directions, which conducted the surveys. “What surprised us was so many believed that core practices in each area weren't widely pursued.”

Summary findings encapsulate these three points:

• 73 percent of respondent companies pursue lean—defined as minimizing waste in all forms—with 11 percent planning to pursue.
• 64 percent pursue total quality—defined not simply as measuring end-of-line defects, but all activities during processing, or available as a process capability—with 10 percent having plans to pursue.
• 47 percent pursue RTE—defined as near-real time manufacturing information flow—with a further 19 percent having plans in the works.

While 73 percent of respondents say lean is a strategic imperative, only three of 12 lean practices are being pursued by those same survey respondents.

Only two lean metrics were considered very effective by the survey majority: on-time delivery, and quality—including defects, scrap, and first-pass yield.

Wide use of CAPA and Kaizen were the only techniques used by more than half of those pursuing total quality. The only metric identified as very effective was tracking defect numbers.

Lack of vision and IT and business constraints combine to prevent manufacturers from displaying metrics that may already be available to them.

A curious finding was that nearly half of respondents collect data every shift (48 percent)—and 45 percent stated they could respond to a KPI within a shift—yet only 28 percent display metrics data that frequently.

Nearly one-third of respondents manage to display performance data monthly, with reasons for the latency blamed on data collection challenges. Fully 36 percent reported lack of vision or understanding as hindering timely use of metrics information.

“People have all this data but they don't know what to do with it,” concludes Fraser. “There are opportunities out there, but how do you make metrics truly effective? Education is critical, and it's something MESA is focusing on.”