We are pleased to announce that Shoplogix Inc. will be exhibiting at NPE 2012- The International Plastics Showcase! The event is taking place at the Orange County Convention Center in Orlando, Florida, USA. Show dates are April 1st- April 5th, 2012. Please stop by our booth # 54065 and learn how you can increase your visibility with the use of the Plantnode360. Our friendly representatives would be glad to assist you in any questions you may have. We’re looking forward to an exciting show!!! If you’re interested in learning more, please visit www.plantnode360.com and www.npe.org.

This year’s Top 20 list of Canada’s most innovative Canadian technology companies, has Shoplogix ranked in the top 10 within the Information and Communication Technology category. The ranking, done by the Canadian Innovation Exchange (CIX) has invited the Shoplogix President and CEO, Martin Ambrose to attend and present at an event on December 1st, 2011 at the MaRS Discovery District in Toronto.

Shoplogix will be showcasing its innovative concepts to a CIX audience, consisting of Canadian and international venture capital firms as well as corporate investors. At the end of the event, A People’s Choice Winner for each category will be announced through the use of a “virtual stock exchange.”

Read the announcement here from The Globe and Mail.

Encountering the opportunity to travel and get paid for it has always been an interesting concept for me, and up until this past year, the concept was just a pipe dream. Over the last eight months I have boarded more than 30 planes and visited more than 12 major (and minor) cities throughout the USA and South-Eastern Canada. Despite what any American may say, the traffic in Los Angeles is not that bad. At least not in comparison to Toronto’s! Also, no matter what the locals say… EVERYONE has an accent! This leads me to one of the more interesting “Social Experiments” I found myself conducting after my first few trips…

Part of the role of a Field Engineer is to directly interact with and deliver training to personnel from the Ground Floor, right up to Corporate – so you can imagine the vast differences in personality types I get to converse with. In the space of an hour, an FES can go from training individuals whose vocabulary consists mainly of four letter nouns, to individuals whose educational costs could have bought them a modest house in any major city.

The thing that puzzled me the most however, had nothing to do with education or vocabulary prowess… I found that no matter who I talked to, no matter how intelligent the content of my presentation or conversation… The more like them I sounded, the more engaged the audience became, and remained throughout my dialog. That’s right, I’m talking about putting your pride aside and using local lingo “Y’all” can “understaaand” when talking “about” (not “aboot”) the “Prawcess” at hand.

Until next Blog, that’s it for now…

In this article we will discuss a four-level model for manufacturing enterprises and focus on how performance metrics can be assigned at each level that link back to strategic goals.

Consider a very simple hierarchical model of a manufacturing enterprise comprised of: the entire corporation, the various Business Units (BUs), the plants within those business units, and the manufacturing lines within each plant. For the purpose of our discussion, this serves as a simple model allowing us to demonstrate how each level is a ‘black box’ to their parent level and how the ability to open this box and shine a light onto the activities within, helps meet performance, business and ultimately strategic goals.

Let us start with the corporation, which is the entire manufacturing enterprise made up of various business units possibly organized by geography, product, or service. The corporation will typically establish strategic goals, stated in financial terms, and assign each Business Unit performance metrics that support the achievement of those goals. For example, a corporation may be focused on maximizing its return on capital employed, and to realize this, may assign margin improvement numbers to each Business Unit and track the performance on a regular basis.

From a manufacturing perspective, the BU is comprised of a number of plants. In order to meet the performance goals established by the corporation, BU Leaders will assign Key Performance Indicators (KPIs) to each of their plants to support the achievement of the corporate strategy. For example, if margin needs to be increased by 10%, BU Leaders will look at KPIs that impact the Cost of Goods Sold (COGS), which may include the costs of raw material, labour, energy, and inventory. We would also like to add that the hidden costs associated with inefficiencies, losses and a lower production throughput than possible, impact margin by inflating unit costs. As such, BU Leaders will assign KPIs around Work In Progress, Inventory, Downtime, OEE, unit labour costs, unit energy costs etc., where the performance targets are set and assigned to the plants. Oftentimes the KPI targets are set based upon historical data. From a previous article, recall that inaccurate information is a major source of poor investment decisions for continuous improvement dollars. Here again, inaccurate information rears its ugly head. Since the targets are set on historical data and that data is inaccurate, the targets are likely to be inaccurate as well. A manufacturer we work closely with established product specific performance targets for OEE based on such a method and struggled to find improvement as the targets were incorrect. When visibility into the real targets was provided, as well as a means to reach those targets, it was clear that the previous production targets, based on inaccurate historical data, were actually hurting the company.

At the Plant level, Plant Leaders are responsible for ensuring that the right processes exist to meet the KPIs established at the BU. It is the Plant Leaders’ responsibility to ensure that the right processes exist to support the improvement of metrics and achievement of targets for Downtime, OEE or unit labour costs. They need to review their plants’ performance, in real-time, against these metrics and identify problems as they are occurring. It is no longer possible to wait until the next day or later to discover that something has gone wrong, it is important to discover the problem as it is occurring and take corrective action immediately.

It is at the Line Level where true progress is made. Here efficiency and throughput improvements are reflected in the Plant KPIs, which roll up to the BU and Corporate levels. Tactical measures result in the realization of strategic goals at the line level. Our experience has shown that operator engagement and real-time feedback to operators is critical in changing behaviour on the plant floor in order to align with the strategic direction established by the corporation. With accurate, real-time information, the operator is able to meet their performance targets which, as discussed, are linked directly back to strategic goals.

The plant floor is a major determinant of costs as well as revenue generation. By linking performance metrics from the line -to the plant – to the BU and to the corporate strategy; manufacturing enterprises have the visibility, at every level, to improve their competitive position.

		George Dalle Ave George Dalle Ave is the Director of Solutions Development at Shoplogix Inc.