A recent study by the Aberdeen Group found that Best-in-Class manufacturers substantially out-perform laggards.
Duh… Of course Best-in-Class have higher yields, throughput, and profits, and are more likely to deliver product on time. Here are the stats:
| Mean Class Performance | ||
| Key Metric | Best-in-Class | Laggard |
| On Time Delivery | 97% | 78% |
| Yield | 98% | 76% |
| Overall Equipment Effectiveness | 91% | 70% |
| Profitability | 25% | 18% |
What we wanted to know is why. Why do Best-in-Class performers enjoy profits that are 25% higher than Laggards? What do they do that is different? How do they get those kinds of significant differences?
The Aberdeen Report, available here, gives a good start to answering these questions.
As a Data Head, I wasn’t entirely satisfied until I had sliced and diced the data myself. Specifically I needed to see the relative importance of the various components of good performance. What I found surprised me and opened new layers of meaning to the Aberdeen Research.
Based on this add-on research, I wrote a companion White Paper that I hope you’ll download and read: “The Role of Real-Time Data in Improving Profits and Customer Satisfaction”.
Take a look at both of these reports. Then share your comments: how do these findings fit with your experience?
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[…] That conclusion doesn’t surprise me. I’ve been arguing for sometime that most businesses under-utilize their data assets. Here are a couple of blog posts, looking at topics like BI as an oxymoron, technology and culture, and the key drivers of Best-in-Class manufacturing. […]