Quality Takes Lead in MOM Software Deployments and Performance Benefits

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1 Quality Takes Lead in MOM Software Deployments and Performance Benefits 1

2 Quality Takes Lead in MOM Software Deployments and Performance Benefits See the scope of MOM-focused Quality Management software Learn how it can transform workflows and real-time decision-making Discover ways to drive substantially improved business performance Although meeting production demand has been and always will remain the central focus of manufacturers, over time, other business factors surrounding that focus have changed dramatically. Today s globalizing economy, shrinking operating margins, consumer demands, supply chain dependency and complexity, increased regulations, and more, have added immense pressures to not just simply perform well, but also to continuously improve that performance. Many manufacturers are looking to proactive, realtime Quality Management processes and software applications to facilitate continuous improvement across these areas and carve out a sustainable competitive advantage. LNS Research s 2013 Manufacturing Operations Management (MOM) Research Study puts this focus on Quality Management into perspective. Over 325 executives shared information on their 2013 versus 2012 performance as well as current and planned technology adoption. Quality Management rose to the top in two crucial questions. First, it was shown that ensuring consistent quality was the top strategic objective for many manufacturers. And second, Quality Management was the top software application adopted within the MOM solutions space. The connection between the top strategic objectives and most adopted software applications highlights an important opportunity for manufacturers. This Research Spotlight will help manufacturing professionals understand the scope of MOM-focused Quality Management software, how it can transform workflows and real-time decision-making on the shop floor, and ultimately how the ability to better manage quality can drive substantially improved business performance. Specifically, this report will answer the following questions: What is the scope of MOM-focused Quality Management software? How does MOM-focused Quality Management software transform the plant floor? What type of performance improvements can be expected from manufacturing-centric quality initiatives? What are some actionable recommendations for successfully implementing MOM-focused Quality Management software? 2

3 Top Strategic Objectives in Manufacturing Aggregating data from all survey respondents, ensuring consistent quality was the number one strategic objective for manufacturers in However, when taken a layer deeper, it is clear that quality is not the only top-of-mind objective across industries. Below, responses are displayed for five industries: batch manufacturing, discrete manufacturing, food & beverage/consumer packaged goods (F&B/CPG), life sciences, and process manufacturing. This analysis shows that ensuring consistent quality was the top strategic objective for batch and discrete manufacturing, as well as for F&B/CPG, while regulatory compliance was the top result from life sciences and increasing production capacity and capabilities was top for process manufacturing. Top Strategic Objectives for Manufacturing Operations These results align closely with LNS Research s view of the manufacturing industry in general. It comes with little surprise that over half of all executives reported ensuring consistent quality as a top strategic objective. Top Strategic Objectives for Manufacturing Operations 3

4 Interestingly, despite the disparities in strategic objectives in industries, Quality Management has a close connection to nearly all of these top objectives. Effectively increasing production capabilities invites a variety of additional quality control points to monitor. Improving responsiveness to customer demands and getting products to market faster can be greatly facilitated by robust end-toend Quality Management capabilities. And managing the dynamic regulatory landscape warrants a strong platform for communication and training on changing quality specifications. MOM-Focused Quality Management Software Today, companies are enhancing product quality capabilities through the correct alignment of both standardized processes and supporting technology in the form of MOM software applications. According to survey responses, Quality Management software was the most commonly deployed MOM application in Taking this analysis a step further, participants were asked whether or not they thought their organization was effectively managing its manufacturing operations at the plant, business unit, or enterprise levels. Of those that responded positively in any of these areas, 58% reported having Quality Management software adopted in This high Quality Management software adoption rate speaks to several important aspects: Many manufacturers rely on operators to perform key quality checks, requiring more streamlined, robust Quality Management capabilities than traditional approaches, like manual processes and purpose-built solutions. MOM and Manufacturing Execution System (MES) vendors have been responsive to user needs and demands, offering stronger Quality Management process support in addition to traditional real-time, in-line quality/statistical Process Control (SPC) capabilities. There is an increased focus on end-to-end, enterprise Quality Management processes, which is apparent in the focus on extending Quality Management software capabilities via global MOM solutions and/or global Enterprise Quality Management Software (EQMS), rather than via point solutions adopted to manage a specific problem or set of problems. 4

5 Top MOM Applications Used by Companies that Effectively Manage their Manufacturing Operations Transforming the Shop Floor with MOM-Focused Quality Management Software MOM-focused Quality Management software facilitates the automation, standardization, and centralization of quality process data and content on the shop floor. It is important to note that the deployment of MOM-focused Quality Management software applications is not simply a paper-on-glass approach where existing processes are already automated. Rather, it takes advantage of real-time data collection capabilities of MOM software along the detailed steps of production operations in order to validate the accuracy of data at the point of collection, which is critical for error checking, improving quality sampling and inspection plans, enabling real-time alerts, and ensuring correct specifications. Understanding the Scope of MOM-Focused Quality Management Software Under the umbrella of Quality Management software within MOM, today s companies are leveraging several methods and capabilities to help attain a better handle on quality, including: In-Line Testing: Supporting the detailed steps and procedures required to ensure product performance to specifications as the production process is occurring. At-Line Testing: Supporting the detailed steps and procedures required to ensure product performance to specifications by testing samples at the production line. 5

6 Statistical Process Control (SPC): Performing statistical process control checks and sampling, utilizing Western Electric rules, charting, and alerting in real-time to any rule violations. Real-time Quality Data Collection and Visibility: Collecting real-time quality information in context to the products, production steps, materials, people and assets involved as well as making this information visible on displays and reports (this information should also integrate with/feed enterprise level/ EQMS quality information systems). Quality Performance Analytics: Ability to look across quality processes and real-time data collection described above to uncover root causes and inter-relationships in support of making future quality-related process improvements. Plant Floor Audits: Ability to look at all work and products in process to ensure that there are no significant quality variations, non-conformances, or missed checks. Quality Workflow Automation: Software that enforces Quality Management processes as an integral part of enforcing the flow of production processes (this software should also integrate with enterprise level/eqms quality workflows). Plant Floor Non-Conformance/Corrective and Preventive Action Management (NC/CAPA): Ability to manage the handling of NC/CAPA workflows and procedures (this software should also integrate with enterprise level/eqms NC/CAPA workflows). Delivering More Actionable Intelligence to Shop Floor Professionals In regard to supervisors and managers, MOM-focused Quality Management software also transforms roles and responsibilities. Because task management on the line can be automated and enforced, even for checks that are performed manually, it allows for a true management by exception mentality. With improved analytics, manufacturing professionals can focus more time on Operational Excellence activities. Finally, it can also eliminate some of the most common and frustrating mistakes like mislabeling or the lack of compliance with Good Manufacturing Practices (GMP). Inspecting the Value of MOM-Focused Quality Management Software with Benchmark Data Benchmark data can help to highlight the value of Quality Management software applications and modules. By cross-analyzing performance in critical operational and Quality Management metrics performance with the adoption of specific Quality Management capabilities, it becomes quickly apparent which technologies deliver the greatest impact to performance. This section will inspect two specific areas: the impact of real-time visibility (data collection and analytical capabilities) on the Overall Equipment Effectiveness (OEE) metric and the impact of SPC on the OEE metric. 6

7 The Impact of Real-time Visibility on Overall Equipment Effectiveness Used on many shop floors, the OEE metric provides insight into efficiency, quality, and availability. It is considered a holistic metric and a good indicator of the health of a manufacturing facility. The box plot below shows a significantly higher OEE for organizations that have deployed real-time visibility capabilities: a median OEE performance of 86.5% versus 80% for organizations that have not deployed the capability. Compounding the impact on OEE, having the capability to analyze Quality Management data in real-time can be a driver of greater and more consistent efficiency and availability. This is evident, as the survey respondents above not only noted a higher performance in general, but also much less variability in the range of performance. Impact of Real-time Visibility on Overall OEE 7

8 SPC is a major driver of real-time visibility of variations on the manufacturing shop floor. The jump in performance improvements shown below is a testament to that, as organizations with SPC reported a median OEE of 89%, 13% higher than those without the capability. Additionally, similar to the real-time capability benchmark data noted above, this box plot shows little variability in performance. Nearly all survey respondents noted an OEE of 80% or greater, with some reaching as high as 95%. Impact of Statistical Process on Overall Equipment Effectiveness 8

9 Actionable Recommendations Based on the data points shared above, it is clear that organizations with SPC and Quality Management software capabilities that support real-time visibility on the shop floor are achieving higher levels of OEE. However, these are just a couple of the Quality Management software capabilities that can be deployed via MOM software. LNS Research s market analyses as well as ongoing discussions with today s leading industry executives show that manufacturers aiming to achieve and sustain a competitive advantage should be considering the deployment of real-time Quality Management software applications on the shop floor, in addition to deploying enterprise-wide quality processes utilizing EQMS offerings. To ensure a successful deployment of MOM-focused Quality Management software, manufacturing professionals can take the following steps: Analyze and determine critical control points in your manufacturing operations where real-time SPC and in-line testing can be deployed to alert on impending process variations. Introduce quality checks and measures as integral elements of production processes that are managed by MOM, MES, or workflow software, such that checks are never missed, and become a part of day-to-day manufacturing activities. Utilize real-time performance management software capabilities of MOM, MES, or Enterprise Manufacturing Intelligence (EMI) software to provide constant visibility of performance of key quality metrics. Manage real-time quality processes with MOM or MES software and integrate these detailed processes with overall, enterprise Quality Management processes managed by EQMS. Work with MOM software providers that deliver real-time SPC, quality process management/workflow, and performance management that can be easily extended into enterprise quality systems. 9

10 Parsec Automation Corp. (Parsec) is the developer of TrakSYS real-time operations and performance management software. Manufacturing companies worldwide use Parsec for flexible and configurable tools to execute manufacturing operations across the value stream more effectively. Without production disruption, TrakSYS helps manufacturers to significantly improve asset utilization and efficiency, increase capacity with no new capital equipment, reduce production costs, decrease lead time, and improve profitability. With measurable ROI, TrakSYS delivers the bottom-line results that manufacturing companies are looking for. For more information about Parsec, please contact us. Authors: Matthew Littlefield, President and Principal Analyst Mike Roberts, Marketing Analyst *This content was generated by LNS Research on behalf of Parsec Automation Corp. 10

11 About Parsec Parsec Automation Corp. (Parsec) is the developer of TrakSYS, the leading real-time operations & performance management software. Manufacturing companies worldwide rely on Parsec for flexible and configurable tools to execute manufacturing operations across the value chain more effectively. Without production disruption, TrakSYS helps manufacturers to significantly improve asset utilization and efficiency, increase capacity with no new capital equipment, reduce production costs, decrease lead time, and improve profitability. With measureable ROI, TrakSYS fuels Lean, Six Sigma, TPM, and Operational Excellence efforts. For more information about Parsec, please visit the corporate website at TM For proven results, contact Parsec now! Copyright Parsec Automation Corp All trademarks are the property of their respective owners. 11