Manufacturing gets new holistic performance metrics
Four industry associations have launched a global initiative to create holistic performance metrics for production plants and warehouses.
MESA (Manufacturing Enterprise Solutions Association), OFC (the Order Fulfilment Council), SCE (Supply Chain Execution – part of the Material Handling Industry of America trade association), and WERC (Warehousing Education and Research Council) have published a paper: ‘Improving Order Execution Performance: A Holistic View of Metrics Across Plant & Warehouse’.
The four organisations say they have agreed common definitions, which, although largely already in use, create a new common understanding, they say.
Building on that, the paper introduces a framework for benchmarking in what they define as key performance areas: customer-facing metrics, order fulfilment, mass customisation flexibility, inventory management, productivity, quality, compliance and finance. Research with these starts next year.
The paper was developed by three independent researchers: Julie Fraser of Cambashi; Kate Vitasek of Supply Chain Visions, and Dr Karl Manrodt, Professor at Georgia Southern University.
