For years, companies have talked about the need for real-time information that is truly available at the time an action or activity takes place.

But according to Sal Spada, director of discreet automation research for ARC Advisory Group, collecting information in real time is just the first step.

The real value comes from creating systems and a culture that can use that information to manage the performance of the operations in a manufacturing plant or distribution center.

'Real-time performance management [RPM] is a way for an organization to identify the metrics it wants to measure dynamically, or as events occur,' says Spada.

'Dynamic' information separates RPM efforts from traditional management initiatives.

'People have measured their businesses for years,' Spada says. 'But when you're reviewing information once a week or once a month, you're not closing the loop fast enough to gain the benefit they need. RPM is all about increasing your visibility into your overall system as your business is changing.'

A manufacturer or distributor can use that information to get a handle on where the bottlenecks are occurring in a system to make incremental improvements that make a difference.

'With real-time information in your material handling system,' Spada says, 'you can make decisions like whether more automation will create labor savings and allow you to respond more quickly to customer demand.'