Manufacturing News

Driving optimal operations performance

April 17, 2003
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Managing a modern food manufacturing plant is no easy task. But a new strategy called real-time performance management (RPM) may be just the ticket. RPM uses performance targets to lead organizations to increased potential and competitive advantage, according to ARC Advisory Group.

Executives must identify the best strategies for their companies and create performance targets that drive the organization forward, said Andy Chatha, ARC’s president. “Often, people have fixed annual goals based on poor operational information that are unresponsive to changing market conditions,” he said.

According to Chatha, guidelines set by a static planning process severely limit performance.

The RPM strategy emphasizes operationally-focused cost and profitability measures for resource allocation and operating decisions. Within RPM, performance targets adapt to changing definitions of what is important and what is acceptable. The real-time monitoring of performance and external factors keep the corporation aligned on the “right things,” according to ARC.

Rather than dated accounting-based measurements, RPM manages business based on current, real-time conditions. RPM solutions use real-time data for all cost-based performance calculations and present real-time performance measures on a dashboard or a portal in a clear format.

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