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How Mature is Your Manufacturing Operation?

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Organizational maturity is a critical growth challenge for Middle Market Manufacturers (MMM), and is often ignored. The different organization maturity models – each with their own nomenclature, characteristics and stages - creates confusion and a willingness to ignore it as a strategic imperative. 

Organizational maturity is a critical growth challenge for Middle Market Manufacturers. Let's learn how to measure Maturity Levels and why they are important.

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What are Middle Market Manufacturers?

Middle Market Manufacturers are defined as companies with annual revenues between $10 million and $1 billion. They are typically family-owned or -controlled businesses that have been in operation for many years. Many of these companies are facing significant challenges as they attempt to grow and compete in today's global marketplace.

One of the most important challenges facing Middle Market Manufacturers is organizational maturity. Organizational maturity is a measure of how well a company functions and how effectively it executes its business strategy. There are four levels of organizational maturity:

  1. Performed
  2. Managed
  3. Established
  4. Predictable
  5. Optimizing

Why is organizational maturity important?

Organizational maturity is important because it directly affects a company's ability to execute its business strategy. Companies that are not mature enough often lack the necessary processes and systems to support growth. As a result, they may find themselves constantly firefighting, which can lead to burnout and high turnover.

Conversely, companies that are too mature may become bogged down by bureaucracy and red tape. They may also find it difficult to adapt to change or take advantage of new opportunities.

The key is to find the right balance between these two extremes. Companies that are able to do this will be best positioned to grow and compete in today's ever-changing marketplace.

What is a good measure of maturity levels?

However, once an MMM puts emphasis on increasing organizational maturity, they can improve in the following ways: 

  • Improve Costs. Better controls, strategic allocations.
  • Increased Productivity. Less time wasted in inefficient processes.
  • Better Quality of Information. One information source of trusted data.

The old adage is applicable: “You can’t improve what you can’t measure.” Driving organizational maturity requires the right metrics, in order to develop and implement an effective improvement plan.

So what is a good measure of maturity levels?

First, break it down by people, process, technology and measurement. Here is one of many example outlines for doing this:

Note that in more mature organizations, the people are engaged, the processes are understood and drive improvement, and data is used to drive decisions.

Next strategic steps

Once MMMs have determined where they are in the maturity levels, they often struggle to make the leap to the next level– typically constrained by budget. Finding cost effective ways to automate processes and collect data – especially on the production floor is a strategic first step.

Two specific needs are process control, and automation of data collection. First, an IT-based enterprise manufacturing execution system providing real-time product, resource and performance traceability is needed to bring the people, processes and technology to the next levels. Second, a powerful, intuitive, real-time yield management system that enables quick identification of root cause and areas for improvement, through graphical trend analysis, statistical process control, and failure analysis will bring people, processes, and measurement together for data-driven decisions.

Finding the right products supporting the move up to more mature organization levels is critical. Especially for MMMs that are looking to increase their competitiveness through organizational maturity using cost-effective automation and data collection tools.

Guidance for Better Manufacturing Operations

Intraratio can help you discover the power of MES and yield management systems for your manufacturing process. Arrange now to speak with an MES expert who can guide you through the ins and outs of customizing an advanced solution for your operation.

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