Report: successful firms know how to manage/mitigate risk.
Manufacturers that can effectively manage and mitigate risks in several key areas will get more products made that conform to industry standards and experience less asset downtime, according to an analysis.
Best-in-class manufacturers encountered an 11% increase in the number of products that are in compliance and a 40-hour earlier response time to non-conforming shipments, according to a report from Boston, MA-based Aberdeen Group. The report, titled Mitigating Risks in Global Manufacturing Operations, analyzed more than 250 companies and concluded that successful manufacturers integrate manufacturing solutions with risk solutions to address and mitigate risks.
"To efficiently manage manufacturing operations, manufacturers must have capabilities to manage and mitigate risks from key areas such as supplier non-conformance, quality and compliance management, asset management, employee health and safety, environmental concerns and time-to-market deadlines," said Mehul Shah, research analyst with Aberdeen's Global Manufacturing Practice.
Best-in-class companies, the report said, have less asset downtime (as much as 10%) and a 1.5 standard deviation reduction in production process variability.
"Best-in-class manufacturers are taking a holistic approach by standardizing processes for managing risks, investing in capabilities to escalate non-conformances in real time, linking operational metrics to financial metrics and integrating manufacturing solutions with risk solutions to proactively address and mitigate risks across the critical aspects of manufacturing operations," Shah concluded.
The report offered several recommendations to help manufacturers better manage and mitigate risks. Suggestions include:
* Escalating non-conforming alerts to appropriate decision makers in real time to ensure that timely actions are initiated to mitigate the risk of a non-conforming incident
* Linking operational metrics with financial metrics to understand the impact of an adverse event on the company's bottom line
* Providing drill-down visibility to operational risks and performance metrics by facility and assets
* Investing in an integrated solution across quality, intelligence, maintenance management and inventory management
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|Title Annotation:||Industry News|
|Publication:||Medical Product Outsourcing|
|Date:||Jun 1, 2008|
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