The five-stage Rockwell Automation Connected Enterprise Maturity Model integrates information technology (IT) with operations technology (OT) to improve performance and minimize risks. But how will you know if you're succeeding — or falling behind?
Most senior executives use dashboards to review how the company did (past tense), observing lag measures such as revenues, costs, and profits. Unfortunately, looking in the rear-view mirror doesn't help when driving forward — either on the highway or with the stages of the Maturity Model. To navigate toward improvement, you'll need new, better metrics and guideposts.
At Rockwell Automation, our metrics continue to evolve. We have suggestions to help you get started, but you'll also want to explore metrics that reflect the unique nature of your operations — helping you to track performance as your company progresses through the five stages of the Maturity Model.
In Stage 1 (Assessment), manufacturers check for readiness to change processes and information architectures. In Stage 2 (Secure and upgraded network and controls), they make changes to leverage timelier, more accurate information between OT and IT. The best metrics for these stages indicate that processes are stable and improving; you are trying to create a production environment that quickly responds to problems with equipment, processes, and workflows. Typical measures include:
- Manufacturing cycle times
- Changeover times
- Quality (scrap, rework, yields)
- EHS (injuries, accidents, chemical releases)
- Production costs (labor, energy, materials)
- Network security breaches/unauthorized accesses
- Percentage of plant floor devices (OT) integrated with the enterprise (IT); i.e., mutual access to systems and controls.
New metrics are required in Stage 3 (Defined and organized working data capital) and Stage 4 (Analytics) to make sure that facility performances contribute to improved corporate financial measures. Frequently used metrics include:
- Return on assets
- Inventory turnover
- On-time performance for new product introductions
- Customer satisfaction (rejects, returns warranty costs)
- Overall equipment effectiveness
- Capital avoidance
- Manufacturing costs
The final stage in creating a Connected Enterprise (Collaboration) extends OT/IT changes out to supply-chain partners and customers. Measures should prove improved relationships with customers and suppliers (e.g., tightly connected forecasts and production schedules) and improved reaction time to external events (supplier disruptions, market forecasts, business trends, political events). Key metrics often include:
- Demand forecast accuracy
- Product innovation (patents)
- New-product profit percentages
- New-product development costs
- Market share
- Transportation/logistics costs (percentage of sales)
- Overall supply-chain inventories
The Rockwell Automation Connected Enterprise Maturity Model offers the chance for significant improvements in performance and the bottom line — but may require multiple years for full implementation. Keep your company on track throughout the five stages by monitoring the right metrics at the right time — so you enjoy the right results.
Published February 9, 2015