- Language: English
- Published: September 2014
- Region: United States
Manufacturing 2013 Executive Summary
- Published: October 2013
- Region: United States
- 24 Pages
- The MPI Group
A single percentage-point change can make the difference between world-class and an average performance.
Based on the 2012 MPI Manufacturing Study, the vital plant-performance data found in the Manufacturing 2013 Executive Summary allows manufacturing executives and support companies to look at a large sample of data and see just how well top performers are succeeding in key performance areas - and where the lowest performers are struggling. With a small investment you’ll be able to make immediate and meaningful comparisons between top operations in the United States.
Besides basic plant profile data, easy-to-understand charts and tables illustrate the findings in five critical plant functions. Here are just a few by category:
- Average annual hours of formal training received by plant employees
- Human-resource practices/programs used
- Job-related injuries/illness
- Lost work days due to job-related injury/illness
- Manufacturing cycle time
- On-time delivery rate
- Perfect delivery rate
- Finished-product first-pass quality yield
- Scrap and rework
- Warranty costs
- Costs of goods sold for:
- Inventory turn rates for:
-- Raw material
-- Work-in-process material
-- Finished goods
-- Total inventory
- To what degree plant activities are outsourced
- Customer reject rates
- Customer retention rates
- Overseas sales
- Imported material/components (China and elsewhere)
Plant and Equipment
- Investments/expenses as a percentage of plant sales
- Where an investment may be made in the next 12 months
- Production volume
- Machine availability
- Operating equipment efficiency
- Return on invested capital
- Green/sustainability measures for:
-- Green products
-- Carbon footprints
-- Green components and materials
- Green programs and/or practices in place for:
-- Energy management
-- Use of renewable energies
-- Formal green corporate programs
-- Carbon footprinting
If you’re not ready for the extensive capabilities of the searchable data available online through the Manufacturers Benchmarking Toolkit, the Manufacturing 2013 Executive Summary is the most affordable starting point to operational improvement. SHOW LESS READ MORE >
2. Human Resources
4. Supply Chain
7. Plant Profiles
9. Presentation of Data
- Manufacturing activity improved in 2012: Production volume as a percentage of designed plant capacity rose to 75% in 2012 vs. 70% in 2011. Almost one-quarter of plants reported production volume at 80% or higher of designed plant capacity. In addition, 66% of plants reported increased output in the past 12 months.
- Employment didn’t rise as fast as demand in 2012: Despite increasing sales, employment at plants remained flat: Respondents reported the same median number of employees (85) as in 2011. The combination of increased output and stagnant employment helped to boost sales per employee to $192,000 (median) in 2012 vs. $173,000 (median) in 2011.
- Employee costs increased in 2012: Production employee average wages and starting wages rose by approximately $1 per hour in 2012 vs. 2011. Labor costs as a percentage of costs of goods sold also rose in 2012 to 25% (median) from 20% in 2011. In addition, 73% of plants indicated that wages increased in the past 12 months, and 61% reported that employee benefits costs increased.
- Improvement methodologies lagged in 2012: The percentage of plants with an improvement methodology fell in 2012 from 2011, and the use of lean manufacturing dropped to 59% in 2012 from 75% in 2011. In addition, only 27% of plants described the implementation of their improvement methodology as extensive or complete. The percentages of plants with operations programs and practices to drive improvements were also lower in 2012 than in 2011. For example, use of continuous-improvement programs dropped to 69% of plants in 2012 vs. 77% in the previous year.
- Production work moved from suppliers back into plants in 2012: An average of 7.8% of total production volume was brought back into plants from outside suppliers in the previous 12 months; 30% of plants increased insourcing. Conversely, an average of 5.2% of production volume moved out to external suppliers of plants in the previous 12 months; 35% of plants increased outsourcing. Based on overall figures, an average of 2.6% of volume moved back to plants. Also of note, the percentage of imported material/components from China dropped to 0% (median) in 2012 vs. 1% (median) in 2011, and 47% of plants imported from China in 2012 compared to 56% in 2011.
- Approximately 44% of manufacturers have made significant progress toward world-class manufacturing status or have fully achieved world-class status (up from 40% in 2011), but 12% of plants report no progress toward world-class status (nearly double the percentage from 2011).