For the last decade, end users participating in ARC's Automation Benchmarking Consortium have had the opportunity to evaluate the internal metrics that the industrial end user participants submit to the group as well as those utilized by their peers. Common metrics have helped Consortium participants better understand what is possible to achieve through the use of automation and other operational technology (OT) and the impact that various actions could have on their respective businesses.
In just one example, Consortium members have used the metrics to help evaluate the consequences of the trend to reduce headcounts as a cost-saving measure on plant performance. While looking good on the balance sheet, this trend could actually reduce plant performance. In a similar manner, the metrics developed by Consortium members can help end users clearly see the impact their peer organizations have experienced.
New benchmarking concepts are being developed that, ultimately, will benefit all users of operational technology. It is becoming clear that these metrics are not just confined to the “cost” or “efficiency” side of the equation, but also to production effectiveness. Both the effectiveness and cost/efficiency perspectives are required to expose automation's rightful place as a key "profit maker" for manufacturing operations.
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Keywords: Metrics, Benchmarking, Performance, Automation, ARC Advisory Group.