SOURCE: Aberdeen Group, a Harte-Hanks Company

April 05, 2007 11:08 ET

MES Adoption and Integration Drives Best in Class Results

Automated Data Collection, Real Time Visibility, ERP Integration, and Standardized Business Processes, All Facilitate Best in Class Performance

BOSTON, MA -- (MARKET WIRE) -- April 5, 2007 -- Through the analysis of over 200 manufacturing execution initiatives Aberdeen Group's newest benchmark report, There is no Execution without Integration: MES Adoption Drives Performance, has correlated very specific business capabilities to Best in Class operational performance. For the purposes of this study, Aberdeen has evaluated and classified manufacturers based on five key performance indicators: On Time Delivery, Throughput, Stock Outs, Direct Material Usage Variance, and Work in Process Reductions. Best in Class manufacturers are defined as the top 20% of performers in a weighted average across the aforementioned five KPIs and results show that Best in Class performance is:

--  98% On Time Delivery with a 9% improvement year over year.
--  88% Throughput with a 10% Improvement year over year.
--  3 Stock Outs averaged per line per week with a 52% Improvement year
    over year.
--  2.9% Direct Material Usage Variance with a 50% Improvement year over
--  61% Work In Process Reduction year over year.
Putting these findings in context Matthew Littlefield, a Manufacturing Research Analyst with the Aberdeen Group, states, "Best in Class manufacturers are 52% more likely to utilize MES, three times more likely to utilize MI (Manufacturing Intelligence), and 61% more likely to integrate MES with ERP. Additionally, 77% of Best in Class manufacturers utilize automated data collection for production, inventory, and quality data and are 67% more likely to provide this data to the necessary job roles for effective decision making."

Based on the above findings Littlefield adds the following recommendations for action:

--  Focus on efficiency and cost reduction by adopting MES or MI and
    integrating with ERP.
--  Utilize production scheduling optimization, quality assurance and
    control, and work in process resource management functionality.
--  Measure On Time Delivery, Throughput, and Manufacturing Cycle Time;
    ideally in real time and at a minimum daily.
--  Adopt automated data collection and dashboard visualization for
    production, inventory, and quality data.
More than 200 manufacturers participated in the study, including: Bombardier, Panasonic, Bayer Healthcare, Unilever, GE, IBM, Xerox (Europe) Ltd., Genentech, Bristol-Myers Squibb Co., and Biogen Idec.

This study is made available to the public through the underwriting of: Apriso, Rockwell Automation, SAP, and Wonderware.

To obtain a complimentary copy of the report, visit:

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

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