Manufacturers that adopt new technologies and aggressively pursue efficient processes on the plant floor are making strides past their competition—this according to a recent study of manufacturers' best practices and priorities, conducted by the analyst firm Aberdeen Group ( www.aberdeen.com). The report continues to say that manufacturers preoccupied by stopgap measures to symptomatic problems in the workplace are being outflanked by their macro-looking counterparts.

What separates "leaders from laggards" is the ability to place high value on "manufacturing performance management flexibility." In fact, the installation of performance management programs acts as a key enabler for moving from "to-stock" to "to-order" operations, the study asserts. Further, while manufacturers that are average or laggards are focused primarily on inventory reduction, an important yet internally focused benefit. The best companies stress agility, flexibility and lead time to create market differentiation.

The report concludes that market leaders have moved past hurdles such as inventory levels and manufacturing reliability and have begun to streamline processes to address overall operations. Adopting this mantra, the best companies generate 6–12% greater cost reduction, 30–50% greater finished goods inventory turn improvement, 20–50% greater cycle time improvement and 25–40% greater on-time shipping performance than their competitors.

A major hurdle standing in the way of average companies is collecting required data and implementing a radical cultural change, according to study data. Without the proper strategy, data collection can be "cumbersome and in conflict" with existing protocols, the report says. Cultural obstacles exist when management fails to realize the financial gains possible with decreased structure in its operations.

The most successful companies place the strongest emphasis on improvement methodologies and IT solutions that can keep pace with the rate of change. Interestingly enough, laggard companies rank that notion the least vital in their priority scheme. These companies are more concerned with "simple and automated data collection" to help engage top management and provide cost benefits.