maximizing roi through a manufacturing maintenance...

Maximizing ROI through a

‘Bloomberg’ Model

Jim McCann, Director

Paragon Information Insights

Manufacturing Maintenance

Optimization

Paragon Solutions, Inc. Proprietary and Confidential

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Today’s Topics:

Manufacturing Maintenance Optimization Maximizing ROI A “Bloomberg Service Model” Key Capabilities

Inventory Accounting and Procurement Maintenance

The Solution Set The DSS Cubes Paragon’s Microsoft BI Stack Solution

Advancing capabilities

MAXIMIZING RETURN ON INVESTMENT

Manufacturing Maintenance Optimization


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Competing On Analytics

The competitive advantage created by analytics is widening:

•90% of companies communicate that they have a desire to improve analytical capabilities.

•80% of companies are underway with some level of initiative(s).

Internal analytics are important as market analytics.

There are three types of companies:

Aspirational, just thinking about analytics

Experienced, with some solid progress on analytics

Transformed, those with advanced capabilities and significant results

“The ability to create a competitive advantage from analytics grows each year.”


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Challenging Topics in Manufacturing

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Need to Understand and Evaluate Possibilities • Leaders lack complete and timely data across most functional areas

• Opportunity is a moving target and difficult to decipher

• New strategies question legacy types of un-structured Information

• A lack of a base KPI set promotes mixed messages for setting priorities

• Planning occurs in silos and leads to overlapping ROI claims

• XL based number crunching is risky and time consuming yet wide spread

Confidence to Make Decisions and Track Outcome • Lack confidence due to incomplete analysis based on incomplete data

• Lagging information forces higher level aggregated decisions

• Contracts are negotiated without an understanding of economics • Recommendations are PowerPoint based and not reviewed for outcome

• Lack of timely micro information forces out dated retrospective views

• Lack of collaboration and process promotes redundancies and costly information gathering

THE “BLOOMBERG” MODEL Manufacturing Maintenance Optimization


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A Couple of Things to Keep in Mind:

How will you accomplish your mission?

Analytics Transformation

Mission: A Single Focus

Discover Analyze Decide

“Emerging from a wide spectrum of sources”

“Improved insights and decision making”

“A new work environment”

“Dynamic external environments inform our strategic agenda”


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Michael Bloomberg Took a Portfolio Approach

(2) Organize Information

(1) Set Focus on the Organization

Valuation

Opportunity

Performance


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Bloomberg Enables a Defined and Tangible Benefit

The Ability To:

Analyze What You Manage


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Bloomberg Approach: Analyze What You Manage

KEY CAPABILITIES Manufacturing Maintenance Optimization


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A Portfolio Based Strategy is supported by three

key components of a KPI framework

A top down portfolio perspective where each entity in the organization manages their portfolio of managed resources and a company investment.

• The portfolio approach and VAP/VOP organized metrics:

VALUE: determines priorities and depicts the Net effect of decisions.

OPPORTUNITY: sets focus for strategies and market leverage.

PERFORMANCE: is a baseline for predicting and tracking.

- All KPIs roll up to these organized categories

- Supports a concerted message to senior management.

- Leverages data that already exists in organizations.

- Sets focus on low hanging fruit deployable in a relatively short timeframe.

- Creates high ROI on existing IT investments.

• “Effective decision makers collectively analyze what they manage.“

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AVANTIS DSS AND PARAGON

NOW PROVIDES AN INTEGRATED ANALYTICS SOLUTION THAT ENABLES YOU TO

“BETTER ANALYZE WHAT YOU MANAGE”.


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Inventory: Key Concepts

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Optimizing inventory levels to just in time

use is key to maximizing revenue.

Providing inventory to the right request on

time

maximizes productivity.


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Inventory: DSS Cubes and Metrics

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Inventory Amount Stock Outs Turns Usage Amounts Entity Costs Total Costs Inventory Amount Available, Maximum Amount Over Maximum Amount Under Maximum Amount Inventory Quantity Inventory Quantity Available Maximum Quantity Number of Extractions Replenishment Point Number of Stock Outs Number of Turns Usage Quantity

Purchase Catalogue Item Item Type MRO Item Item Entity Site Location Area …………

By


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Inventory: Case Study

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Review Current Inventory Levels By Item Type

Compare:

Projected vs.

Actual

Create better Forecasts

Amount

Quantity


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Inventory: Drill Deeper Into Details

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Inventory By MRO Item, Type and Usage

Review Details by

top 10

Compare trends

Amount and Quantity Details


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Accounting and Procurement: Key Concepts

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Financial intelligence

is key to competing in today’s marketplace.

Understanding vendors performance and

market dynamics are key to leveraging

purchase power.


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Accounting and Procurement : Cubes and Metrics

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Committed Amount Deliveries On Time Deliveries Late Deliveries Ordered Amount Received Amount Invoiced Amount Aged Requisition Lines Amount Not ordered Committed Amount non-receivable Committed Amount receivable On Time Deliveries Late Deliveries Percent of Late Deliveries Aged Requisition Lines Work Task Total Actual cost Planned Costs Actual Hours Planned Hours

Purchase Catalogue Item by Item Type Item Type Work Priority Work order type Location Vendor Item Site ………

By


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Accounting and Procurement: Case Study

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Review Projected Spend and Purchase/Deliveries Trend

Monitor:

Cash Flow

Budgets vs. Actual

Committed vs.

Received

Deliveries Purchases


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Accounting and Procurement: Drill into Detail

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Examine Details of Total Spend and Orders

Deliveries vs.

Requisitions

Track Items Requested and

Not Ordered

Spend Details

Requisitions Not ordered


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Maintenance: Key Concepts

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Knowing

when to act and make adjustments to

maintenance priorities optimizes

planning, efficiency and cost saving.


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Maintenance: DSS Cubes and Metrics

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Total Cost Total Cost Native Actual Cost Planned Costs Actual Hours Actual HRs scheduled Preventative Actual HRS not scheduled Planned HRS Planned hrs. scheduled non Preventative Actual HRS scheduled / Not Scheduled Number of requirements Days in Backlog, Number of work orders Average number of days in backlog Number in backlog Work Completed, Percent completed Percentage HRS, Tasks Number, Number of failures, mean time since last failure, Work Orders in Planning, Number extracted, Work Tasks, Work Requests

Priority Work Type Trade Preventive Maintenance Work Priority Work order type Location Item Site ………

By


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Maintenance: Case Study

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Track Maintenance Spend and Compare Areas

Identify Maintenance Costs By Area and Compare over Time

By Site By Time


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Maintenance: Drill into Detail

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Review Segmentation by Costs for Site and Types

Find root cause of maintenance cost anomalies

Then drill into specific line items

Site Costs

Type Costs


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Ability to Drill Into Root Cause


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Maintenance: Assignments Case Study

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Understand the Cost of Assignments

Trend by year and by day and identify outliers

Hours Costs


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Maintenance: Assignments Drill Down Into Details

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Examine details of trade work

Trend requirements

and time worked by trade over

time.

Drill into specific

trades and personnel.

Time Worked by Trade

Requirements by Trade


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Maintenance: Backlogs Case Study

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Review Current and Historical Backlogs

Examine priorities and work orders backlogs

distribution

Priorities

Summary • Extractions • Backlog • Types


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Maintenance: Backlogs Drill Into Details

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Review work orders planned vs forecasted.

Trending work type and actual vs.

planned.

Work orders by work type

Work type actual vs. planned.


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Maintenance: Summary

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Develop Executive Summaries

Priorities

Trends


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Maintenance: Summary of Planned vs Actual

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Develop Executive Summaries

Labor Planning Trends


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Maintenance: Drill Into Work Orders

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Compare labor, priorities, type and planned vs actual

Priorities

Hours

Types

Costs

THE SOLUTION SET Manufacturing Maintenance Optimization


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Paragon Complements the Avantis Architecture and

Reporting Suite with Options Across Technologies

Inventory – Tracking inventory levels, stock outs and turns

Maintenance – Scheduling, Entity cost analysis, work history and compliance

Purchasing – Direct, deliveries, spend and pricing analysis

Dashboards and Workflow

Work – Assignment, backlog, completed, control, planning, requests and scheduling.


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Key Features Complementing Schneider Electric,

Avantis Products

Leveraging Avantis cube architecture

Integration with client’s existing architecture

Customization of reports per client individual needs

Ability to grow with Avantis upgrades

Integration with dashboards and workflow capabilities

Ability to integrate client specific data and analytical requirements


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Paragon Provides Third Party Analytical

Capabilities

Interactive reports and dashboards are

created in 3rd party BI tool

Leverage Microsoft SharePoint based

visualization and Dashboards

Dashboards & Analytics

Microsoft Business Intelligence SharePoint Portal

Avantis ETL Server

Extraction &

Transformation

Process

(SSIS)

Avantis.PRO Subject Matter

SQL Server

Database

Analysis

Database

(Data Cubes)

Avantis.PRO data extracted to ETL Server

ADVANCING CAPABILITIES Manufacturing Maintenance Optimization


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Spotfire Solutions

Interactive Graphs and Charts Heat Mapping Write Back Capability

Statistical Modeling (e.g. P-Charts) Geographic Mapping Advanced Visualization

Provides advanced analytics


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Spotfire: Accounting and Procurement


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Spotfire: Inventory


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Developing Dashboards for Supporting Collaboration


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Dashboard and Dissemination

Status of Goals

Net Sales Impact, ROI

and Opportunity

Managed Area

Status

Projected Success

and Tracking

Team Messaging

News and Information

Sentiment and team

engagement

Segmentation of Channels

It’s not just reporting.

A modern approach pushes information to the top.


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Mobile Strategy and Visualization – Cloud

Appropriate

SET YOUR GOALS HIGH IN 2014 AND 2015!

ASK US ABOUT THE NEXT GENERATION IN DEVELOPMENT.


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Thank You

Jim McCann

Director, Information Insights Practice

Cell: 917-670-5925

Email: [email protected]

For more information about Paragon, see

www.consultparagon.com

http://www.consultparagon.com/

maximizing roi through a manufacturing maintenance...

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