In manufacturing, as well as in many other areas of life, the adoption of KPI tracking software is often more influenced by trends, advertising, and word of mouth than by actual needs. This reality poses several problems for manufacturing operations. Manufacturers may find themselves following unproductive paths, and organizational mindsets regarding the impact of technology can affect operations positively or negatively.
However, even with an awareness of the potential pitfalls associated with poor software-related decisions, the fact remains that making effective decisions is extremely challenging, if not impossible, without asking the right questions from the start. Part of the challenge lies in knowing where to begin.
First, Focus on the Outcomes, Not Just the Technology…
The allure of new technology, driven by industry buzz such as that around analytics, can be tempting. However, prioritizing business value over the latest technological trend is more likely to yield benefits. Start by examining specific business problems or opportunities, aiming to address these through technology. This approach, which we term “identifying capabilities,” focuses on what you wish the technology to accomplish for your business, such as enhancing productivity, reducing costs, or improving quality. These goals should dictate the capabilities and use cases for technology selection.
We advocate for a structured approach:
- Objectives drive capabilities
- Capabilities drive use cases
- Use cases drive technology selection
- Technology selection drives vendor choice
This guided pathway is designed to steer you toward the right decisions.
5 Steps to Choosing the Right KPI Tracking Software for Your Manufacturing Operations:
- Define Your Strategy and Objectives: Determine what the business needs to achieve that it currently cannot, or identify areas for improvement. Ensure these objectives are in line with the overarching corporate strategy.
- Identify Key Performance Indicators (KPIs): Pinpoint specific KPIs that you aim to track and improve. These could relate to enhancing productivity, efficiency, or product quality. Identifying the right KPIs is essential to realizing your company’s objectives.
- Research Available Solutions: Investigate KPI tracking solutions that could help you meet your objectives. Look at various vendors and platforms to understand the possibilities. Develop a system to prioritize your options based on your specific needs.
- Review Use Cases: Evaluate potential solutions based on how they can support your identified KPIs. Can the software provide the data and business analytics necessary for the capabilities you’re seeking?
- Select the Appropriate Software and Vendors: Start with a comprehensive list of potential solutions and assess how each aligns with your needs. The criteria will vary by company, but the goal is to find a solution with proven capabilities from a reliable vendor.
Improving metrics like productivity or quality often requires a step-by-step approach, and software might not always be the immediate answer. Addressing process- and people-related issues can sometimes offer quicker and more significant improvements.
Consider a scenario where implementing a new KPI tracking system is under consideration. Before proceeding, evaluate whether fundamental continuous improvement methodologies (e.g., Lean, Six Sigma) have been applied. Understand the best possible process outcomes and identify the gaps. Equip your operations team with the necessary tools for success and establish clear criteria for measuring the new system’s effectiveness.
Improving metrics like productivity or quality often requires a step-by-step approach, and software might not always be the immediate answer. Addressing process- and people-related issues can sometimes offer quicker and more significant improvements.
Consider a scenario where implementing a new KPI tracking system is under consideration. Before proceeding, evaluate whether fundamental continuous improvement methodologies (e.g., Lean, Six Sigma) have been applied. Understand the best possible process outcomes and identify the gaps. Equip your operations team with the necessary tools for success and establish clear criteria for measuring the new system’s effectiveness.
Finding the Optimal Solution
Once you have a clear understanding of the needed solution and its purpose, the foundation for a sound decision is set. However, the process doesn’t stop there. The next step involves comparing options from various vendors to determine the best fit for your operations. This selection process is critical and will be the subject of a future discussion.
Today, transparency and visibility into operations are crucial for manufacturers. Access to data that provides insights into current performance, goals, and the progress of initiatives is indispensable. Solutions like Dploy Solutions offer the visibility needed to make informed decisions about your operations, covering equipment, processes, and personnel, thereby guiding your next steps.