Improve Operational Performance of Your Manufacturing Systems and Equipment to Increase Return on Assets
Return on Assets is a key metric shareholders' use to assess a company's use of capital, and is perhaps the most effective metric to measure how well operations are performing. Without the ability to control ROA on a granular level while performing continuous process improvement, down to the plant-floor, consistent delivery of profit is virtually impossible.
Strategy vs. Execution
The challenge is clear: minimize the cost of assets (plant equipment and inventory) while exceeding customer satisfaction though best in class customer fulfillment rates. Today's manufacturing and product supply operations are complex and multifaceted. Striving to balance demand variability and operational volatility can quickly create excess inventory buffers, plant asset imbalances – leading to unsatisfied customers. These challenges can place your business at risk if left unattended. Even a perfect strategy is useless if you can't synchronize operations from the plant floor level throughout your supply chain operations and distribution channels with your business plan ― in real-time. What is required is to coordinate capacity, materials with customer demand within not only your Enterprise Resource Planning (ERP) systems, but also across your global manufacturing operations.
To achieve this balance, Apriso provides manufacturers real-time visibility into and control over their manufacturing operations to synchronize operations with changing market conditions to successfully deliver to customer demand. Maximize your Return on Assets (ROA) by improving the manufacturing efficiency of your operational teams and third party supply chain partners across your operations. Synchronize your production, quality, warehousing, maintenance and labor operations as a collaborative whole with sufficient flexibility to steadily improve your processes in order to not only maintain the highest performance on your Return on Assets, but to continuously improve this metric over time.
Revenue Enhancement: Time to Market for Higher Value Product
A global medical device manufacturer has teamed with Apriso to improve production performance and reduce inventory by 60%. This in turn freed 96,000 sq. ft. of manufacturing floor space to be used for incremental production of higher value product lines, increasing the asset utilization of this plant. Apriso helped this customer increase revenues without further capital expenditures, thereby increasing their overall ROA.
Expense Reduction: Enhanced Continuous Improvement
Apriso customers use FlexNet Quality to best manage quality assurance initiatives across operations as an integrated solution to lower the total cost of quality and improve ROA. One client achieved $3.7 million of cost reduction within their quality program at a single aerospace and defense facility; an automotive supplier has reduced product quality costs by over $40 million.
Expense Reduction: Better Inventory Management
Another area of cost reduction where Apriso has improved ROA is in improving inventory management systems by more efficiently managing inventory-from raw material orders to on-hand inventory – helping to eliminate physical inventory among partners and suppliers. Examples of improved capital efficiency through better inventory management and inventory tracking techniques include one Apriso customer who reduced raw and semi-finished inventory at one plant by over 60%; another recognized $450,000 savings per year on a single product line.