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CONFIDENTIAL AND PROPRIETARYThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Simon Jacobson
@simonfkj
The New Era of Industrial
Performance Management
1 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Factories Are Goldmines
1% Improvement = $500M
2 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Does Your Company Mine Its
Gold?
1% Improvement = $500M
1% Improvement
= $500M
3 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
1. How The Art of Possible Is Fueling A New Generation of Industrial Performance
2. Tactics To Mine The Gold
3. Leveraging Performance Improvements Into Other Areas Of Your Business
In this session
4 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Cost
Quality
Capability
Time
Transparency
Reliability
Customer Experience
How We Look At Manufacturing Is Changing
5 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Innovate
Differentiate
Run
Bimodal Is Opportunity to Nurture The Art of Possible
• Changes the way you work
• Experiment and learn
• Domain of "fast" innovation and partnering
• Driven by demand and process improvements
• Medium-term change management
• Ongoing optimization, incremental value
• Analog and mechanical
• Standardization and cost reduction
• Proven and reliable
+
-
Ris
k &
C
ha
ng
e
-
+
Govern
ance
11
22
Mode 1
Mode 2
6 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
“We were using Chinese recipes to make Western food”
Zhang Ruimin, CEO Haier
© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.
Innovation
Trigger
Peak of Inflated Expectations
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Expecta
tions
Time
Positive Hype
Negative Hype
Balancing Innovation vs. Capability
Innovation
Trigger
Peak of Inflated Expectations
Expecta
tions
Positive Hype
What future trends should my
company be preparing for?
Trough of Disillusionment
Slope of Enlightenment
Negative Hype
Where should my company be
focused today?
Plateau of Productivity
What my company
should have completed?
Time
© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.
Balancing Innovation vs. Capability
Source: Hype Cycle for Leaders of Manufacturing Strategies, 2015
© 2013 Gartner, Inc. and/or its affiliates. All rights reserved.
1. How The Art of Possible Is Fueling A New Generation of Industrial Performance
2. Tactics To Mine The Gold
3. Leveraging Performance Improvements Into Other Areas Of Your Business
In this session
11 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
The Great “Digitalization vs Storm Windows” Debate
Why should my P&L
shoulder the burden?
We still need basic data
collection and reporting
Excel came free with the
desktop
Business
Strategy
Factory
Operating
Strategy
Wants:
• Digitalization
• Automation
• Visibility
• Quality
• Capability
Visibility
New Markets &
Segments
Agility
Lean Supply Chain
Improve Supply-
Demand Matching
Network Design &
Optimization
Manage Complexity
Sustainability
Traceability &
Compliance
Business and Supply Chain-driven
Outcomes
Technology and Systems
Enablement/Investments
Performance Teams and Level within
Manufacturing for Capability
Development
Line/Work
Cell/Production
Unit
Site-level
End to End
Supply
Network
Region/
Market
Manufacturing Strategy
and Systems Focus
Improve?
Automate?
Digitalize?
Skill?
Analyze?
More Than Technology Drives The Factory of the Future
Source: More Than Technology is Driving the Factory of the Future, Gartner 2015
1. How The Art of Possible Is Fueling A New Generation of Industrial Performance
2. Tactics To Mine The Gold
3. Leveraging Performance Improvements Into Other Areas Of Your Business
In this session
14 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Through 2018 three out of five Internet of Things projects in manufacturing operations will only deliver benefits to local plant operations
There’s Gold In The Factory—but look beyond the four walls!
15 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
There’s Gold In The Factory—but look beyond the four walls!
Difficulty
(to scale)
Timescale
Low
High
QuickSlow
Factory
Supply Chain
Reliability
VisibilityQuality
Traceability
Energy Management
Asset Performance
Decision Making Competency
Product-lifecycle Management
Asset Utilization
Improved Inventory and Cash Flow
Safety
IT TCO
Latency Reduction
Pull-based replenishment
16 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Digital Ecosystems Are Needed
Process Granularity
Business Performance
Make
Plan Source Deliver Service
Source: Factory of the Future Strategies, 2015
17 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Matu
rity
Level
Autonomous Manufacturing
Functional Excellence
Integrated Manufacturing
Demand-drivenManufacturing
Value Creation
Reacting
Anticipating
Integrating
Collaborating
Orchestrating
Inside-Out Outside-In
Connected Plants and Factories Connected Value Networks
Improvement projects to drive a group focus
Integrated “Excellence” within the manufacturing
function
Demand-driven with integrated end to end
processes
Value translated into multiple network
participants
Accidental Excellence
Operating Efficiencies
End to End Process Capabilities
Orchestrated Business View
Use the IoT to Unlock Gold
The Trap
The Opportunity
18 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Balance Your Modes Of Operations
Mode 1 Mode 2
Reliability Goal Agility
Cost versus Quality Approach Cost versus Value
Capacity orientation Factory Model Capability orientation
Plan-driven, approval-based GovernanceEmpirical, continuous,
process-basedDrives future scale
Good at conventional process, projects
TalentGood at new and uncertain
projects
Individual processes and product
flow pathsAutomation Decisions and information flow
Long (Weeks & Months) ImplementationShort (Days &
Few Weeks)
Think Marathon Runner
Think Sprinter
Evolution Revolution
19 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Be a deconstructionist
Ask "What opportunity are we creating?" and not just "What problem
are we trying to solve?“
Explore, experiment, and innovate how manufacturing connects with
your customers.
Capitalize on the collateral benefits of real time data.
Recognize and embrace how cultural characteristics and mindsets of
each mode will vary.
Actions You Can Take
20 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Simon Jacobson+1 617 851 9061
simon.jacobson @gartner.com
21 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Recommended Gartner Research
Overcome Misalignment of Objectives Between Plant and Business to Execute the Factory
of the Future Strategy
Simon Jacobson (G00290949)
Bimodal Is Essential for Balancing Innovation and Capability in Manufacturing Operations
Simon Jacobson, Dana Stiffler (G0027795)
Predicts 2016: Opportunities Abound for the Factory of the Future to Reach Its Potential
Simon Jacobson, Rick Franzosa (G00292106)
Manufacturing Excellence Is a Sustainable Supply Chain Activity – Not a Site Project
Simon Jacobson, et al. (G00292413)
Four Best Practices to Manage the Strategic Vision for the Internet of Things in
Manufacturing
Simon Jacobson (G00263405)
CONFIDENTIAL AND PROPRIETARYThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Simon Jacobson
@simonfkj
The New Era of Industrial
Performance Management
Recommended