Manufacturing Performance Benchmarking - Getting Started | ARC Advisory Group
Do you really know how well your plant or business is performing? Are you achieving operational excellence and world-class performance? Benchmarking your performance against others provides confirmation that your investments and strategies in continuous improvement are delivering the required ROI and it also pinpoints opportunities for future business improvement initiatives. ARC Advisory Group has recently made it easy for owner-operators and end users of automation and operations software and systems to get started with performance benchmarking. https://www.arcweb.com/performance-be...
Why Benchmark Plant Performance?
Evaluating the performance of applications, business processes, and/or organizational structure is one the major roles of business managers. This is required to optimally allocate resources, set priorities, and achieve core competitive advantage. But, what "standard" do you use for measuring your performance? A benchmark provides the needed information to assess current conditions and set reasonable objectives.
Benchmarking your operational performance against others yields specific data on the success of your automation strategy, determines whether you are achieving the needed ROI, and identifies where and how to improve your strategies and investments in the future.
Cost vs. Value Benchmarking
Choosing the right approach to benchmarking is of critical importance to getting results. For the last several decades, companies have been fixated on cost reduction, headcount reduction, and business re-engineering to increase output per employee. No wonder that performance metrics, if available at all, are typically focused on the cost side, rather than the value that investments in automation bring to the business.
It is often overlooked that a control system or a software application is part of the VALUE equation of the larger business system. A control system or a software application generally brings a certain amount of value to a company when it is installed. In most cases, more value can be created by improving the installed system by adding new skills to the human resources, using advanced control techniques, asset management, abnormal situation management, and a host of other things. These and other performance metrics, along with best practices, are the true value creators for most businesses today.
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