Manufacturing has been hit hard by this current economic downturn and during tough economic times, a strong Return-on-Equity (ROE) will insure a firm’s efficiency at generating profits from every single dollar of shareholders’ equity. Based on a recent Cincom survey, the Best-in-Class companies had an average ROE of 19.32%, while the industry average companies had an average ROE of 5.58%.
Below are some best practices from the manufacturers that had the strongest financial performance over the last 10 years. Compared to the industry average companies, these Best-in-Class companies had advantages in the following areas:
- 3 times more likely to have an integrated Project Management system with a Lean Enterprise Mfg application
- 2 times more likely to have business process management techniques to optimize processes and to make extensive use of analytics/dashboards
- 1.66 times more likely to use Demand-driven manufacturing tactics such as electronic Kanban
- 1.625 times more likely to use electronic communication
This worldwide economic downturn is an excellent opportunity to eliminate waste, and preserve the jobs of your employees.