SlideShare a Scribd company logo
1 of 5
Download to read offline
Manufacturing                                                                            February 01, 2007


                       Early Lean Adopters Embrace Technology
           Market Segment
 Results from Aberdeen Group report, The Lean Supply Chain, indicates that Aerospace and
 Defense (A&D) manufacturers are 40% more likely to be Best in Class performers – companies
 that are characterized by having an integrated Lean approach and solution with technology
 enablers - than their peers from other industries. One of the reasons for this performance
 difference is their early adoption rate for Lean. The maturity of this industry is directly reflected in
 its increased rate of technology and lean tools utilization on the shop floor.


            Lean Adoption
 Lean is a philosophy that espouses continuous improvement, the simplification and
 standardization of business process, and the elimination of all forms of waste. A&D
 Manufacturers have taken the lead compared to their peers when it comes to adopting Lean
 philosophies and processes in their organizations. These manufactures are 81% more likely to
 have adopted Lean processes for more than 5 years, as compared to the general population.
 (Figure 1).
 Figure1: A&D Manufacturers: Taking the Lead in Lean Adoption

                                                                                          50%



                                                                                    29%
                               25%
                21%
       17%                          18%                           17%          16%
                                                       14% 15%
                      8%                  8%



     Less than 1 year           1 to 3 years            4 to 5 years        More than 5 years

                             General Population        A&D      BIC A&D

                                                                      Source: AberdeenGroup, February 2007

 Another interesting finding was the considerable difference in the adoption rates among the
 A&D manufacturers. Even in the same vertical, the Best in Class (BIC) companies are 72% more
 likely to have adopted Lean manufacturing processes for more than 5 years. This difference
 among the A&D manufacturers points towards the fact that there is still ample room for
 improvement among the A&D sector.

        Announcement              For more Manufacturing research, join Manufacturing Advisor
Early Lean Adopters Embrace Technology
Sector Insight                                                                                       Page 2



Different Responses for the Same Challenges:
Deploying Lean techniques and technologies in the manufacturing process can help companies to
significantly improve their operational performance, customer responsiveness and hence the bottom
line financials. But as the famous adage goes “it is easier said than done”; companies are facing
challenges in implementing Lean concepts. Even with the early adoption rates, the A&D
manufacturers are facing challenges similar to those faced by the general population. The challenge
of ‘Cultural Change’ is a top issue that manufacturers in every industry vertical are currently
facing. But interestingly, A&D manufacturers are responding to the challenge with a slightly
different perspective.
 Figure2: Responding to the Lean Implementation Challenges

                                                                                          67%
            58%                              58%
                                                      48%
                       42%                                                     42%




   Use external Lean domain expertise   Engaged top management          Took small, pragmatic steps to
                                                                              become Leaner

                                        A&D    General Population

                                                                      Source: AberdeenGroup, February 2007

Companies that are relatively new in their
                                               Recommendations for Action
Lean journey, start with taking small,
pragmatic steps to become lean. This is        √    Engage top management to facilitate the
the approach followed by the majority of            adoption of lean philosophies and technology.
the manufacturers. Once they realize the       √    For A&D manufactures trying to reach Best in
early benefits of using Lean techniques             Class performance levels- employ external
they get aggressive with their strategy.            consultants with greater domain expertise in
A&D manufacturers have already passed               Lean adoption.
that stage and hence are following             √    Utilize ERP as a foundation for Lean initiatives
different tactics to respond to the                 and ensure ERP has specific functionality in
challenges.                                         Lean tools such as Kanban, Level Loading, and
A&D manufacturers are more likely to                Supermarket Sizing.
leverage external domain expertise with
the use of consultants and trainers to speed up their Lean initiatives. This is an important step by
A&D manufacturers, taking in consideration the performance gap that exists in the vertical. A&D
manufacturers that are early in their Lean journey can use some outside help to get in pace with the
top performers in their field. Getting top management engaged with the Lean process is another
important strategy followed by A&D manufacturers. In order to get and sustain buy in from top
management, it is important to make them realize the short term as well as long term strategic
benefits of adopting Lean tools. It becomes a lot easier for any company to address important issues


© 2007 AberdeenGroup, Inc.                                                         Telephone: 617 723 7890
260 Franklin Street                                                                      Fax: 617 723 7897
Boston, Massachusetts 02110-3112                                                        www.aberdeen.com
Early Lean Adopters Embrace Technology
Sector Insight                                                                                       Page 3



when a decision comes from the top rather than from the grass root level. Commitment from top
officials also helps to increase the technology adoption rate for the manufacturing processes.
Technology Adoption
Technology plays a crucial role when it comes to applying Lean concepts in manufacturing.
Technology is used to increase collaboration across different levels of the organization. With
companies expanding their supply chain globally, manufacturers are in need of Lean tools and a
robust technology platform. This will help companies to address the challenge of growing
complexity in the supply chain and also to adopt Lean on the shop floor and across the
organization.
 Figure 3: Using ERP to Support Lean Strategy

                                                                                   100%
                                                  78%
                 56%




         General Population                       A&D                            A&D BIC

                                   ERP (as a general foundation for Lean)

                                                                        Source: AberdeenGroup, February 2007

A&D manufacturers have embraced the use of technology in their approach towards going Lean.
They are 40% more likely to use ERP solutions as a general foundation for Lean as compared to
other manufacturers. This difference is amplified among BIC A&D manufacturers. In fact, every
single BIC A&D manufacturer benchmarked by Aberdeen utilizes ERP technology to support Lean
initiatives. ERP solutions have come a long way from being used to manage the back office
business processes to being used as a solution to encompass customer and supplier functions.
As companies start realizing the real benefit of
                                                   Lockheed Martin Electronic Systems
using Lean tools across departments, they
gradually move from the manual approach            “In the late 1990’s we improved our competitive
(pencil/paper and spread sheets) to the use of     standing by coordinating both our business
more automated applications – SCM (Supply          processes along with our ERP implementation.
Change Management). A&D manufacturers              This put us in the position to aggressively
being historically early adopters of Lean have     promote Lean and Six Sigma across our business
led this approach. This can clearly be seen in     unit. Utilizing ERP in conjunction with our Lean
Figure 4, where A&D manufacturers have             and Six Sigma programs we have seen
overtaken the general population in adopting       significant improvements to both our product
Lean tools, such as Kanban, Level Loading,         cost and cycle time performance”
Supermarket Sizing and Value Stream                Frederick Musco, Director of Information
mapping across the enterprise. The Aberdeen        Technology
Group attributes this increased adoption of
Lean tools to the industry’s early adoption of Lean philosophies and the utilization of ERP as a
foundation of Lean, all of which precede Best in Class performance.

© 2007 AberdeenGroup, Inc.                                                         Telephone: 617 723 7890
260 Franklin Street                                                                      Fax: 617 723 7897
Boston, Massachusetts 02110-3112                                                        www.aberdeen.com
Early Lean Adopters Embrace Technology
Sector Insight                                                                                   Page 4



 Figure 4: Utilization of ERP and SCM for Lean Tools


       Supply Integration                                                                 60%
          (Kanban)                                                                  54%
                                                                            47%

     Plant/Line Execution                                               44%
                                                                       43%
    (leveling & Takt time)                                    35%

                                                                 38%
      Supermarket Sizing                      20%
                                                    24%

  Value Stream Mapping                                  30%
                                                      28%
    (Cross-enterprise)                       19%

  Value Stream Mapping                          22%
                                                      27%
       (Plant level)                          20%

                                         General Population      A&D       A&D BIC

                                                                    Source: AberdeenGroup, February 2007

Aberdeen Conclusion
Many Aerospace and Defense manufacturers are enjoying a competitive advantage because of an
early adoption of Lean tools. However, there are still considerable differences in the performance
among A&D manufacturers. The best way for A&D manufacturers to achieve best in class
performance is by using external domain expertise, and utilizing ERP with Lean specific
functionalities as a foundation for implementing the above Lean tools. For those Aerospace and
Defense manufacturers that are performing at the Best in Class level; continue utilizing technology
to institutionalize Lean philosophies and continue to extend Lean initiatives across the supply
chain. By implementing these strategies the Aerospace and Defense industry will continue to lead
the Lean adoption curve and continue to enjoy performance benefits that are superior to almost all
other industries.




© 2007 AberdeenGroup, Inc.                                                      Telephone: 617 723 7890
260 Franklin Street                                                                   Fax: 617 723 7897
Boston, Massachusetts 02110-3112                                                     www.aberdeen.com
Early Lean Adopters Embrace Technology
Sector Insight                                                                                                                    Page 5




Related Research                                                      Upcoming Research
  The Lean Supply Chain Benchmark                                        Manufacturing Flexibility, February 2007
  Report, September 2006
  The Lean Benchmark Report: Closing the                                 Shop Floor Data Integration, March 2007
  Reality Gap, March 2006
    Author: Mehul Shah, Research Analyst, Manufacturing (mehul.shah@aberdeen.com)
    Matthew Littlefield, Research Analyst, Manufacturing (matthew.littlefield@aberdeen.com)


Founded in 1988, AberdeenGroup is the technology- driven research destination of choice for the global business executive.
AberdeenGroup has over 100,000 research members in over 36 countries around the world that both participate in and direct the most
comprehensive technology-driven value chain research in the market. Through its continued fact-based research, benchmarking, and
actionable analysis, AberdeenGroup offers global business and technology executives a unique mix of actionable research, KPIs, tools,
and services.
This document is the result of research performed by AberdeenGroup. AberdeenGroup believes its findings are objective and represent
the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by
AberdeenGroup, Inc. and may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means without prior
written consent by AberdeenGroup, Inc.

More Related Content

What's hot

Ems11 Programme
Ems11 ProgrammeEms11 Programme
Ems11 ProgrammeMandy_Long
 
Lean Mythbusting for Staff, Managers and Executives.
Lean Mythbusting for Staff, Managers and Executives.Lean Mythbusting for Staff, Managers and Executives.
Lean Mythbusting for Staff, Managers and Executives.Stephen Parry
 
How to Create an Authoring Infrastructure that Supports 24/7 Global Content D...
How to Create an Authoring Infrastructure that Supports 24/7 Global Content D...How to Create an Authoring Infrastructure that Supports 24/7 Global Content D...
How to Create an Authoring Infrastructure that Supports 24/7 Global Content D...Emmelyn Wang
 
Apple Production Supplier Report - 2012 Progress Report
Apple Production Supplier Report - 2012 Progress ReportApple Production Supplier Report - 2012 Progress Report
Apple Production Supplier Report - 2012 Progress ReportTommy Toy
 
EFQM Excellence Model for Corporate Data Quality Management (CDQM)
EFQM Excellence Model for Corporate Data Quality Management (CDQM)EFQM Excellence Model for Corporate Data Quality Management (CDQM)
EFQM Excellence Model for Corporate Data Quality Management (CDQM)Boris Otto
 
Pure Insight Overview
Pure Insight OverviewPure Insight Overview
Pure Insight Overviewlornab81
 
Accelerating science-led-innovation-whitepaper
Accelerating science-led-innovation-whitepaperAccelerating science-led-innovation-whitepaper
Accelerating science-led-innovation-whitepaperSergey Lourie
 
Global Cloud Transformation: Setting the Stage for Success
Global Cloud Transformation: Setting the Stage for SuccessGlobal Cloud Transformation: Setting the Stage for Success
Global Cloud Transformation: Setting the Stage for SuccessBluewolf
 
Aberdeen Survey Of Voice Users
Aberdeen Survey Of Voice UsersAberdeen Survey Of Voice Users
Aberdeen Survey Of Voice UsersJoe Bui
 
Agile India 2018 Conference
Agile India 2018 ConferenceAgile India 2018 Conference
Agile India 2018 ConferenceNaresh Jain
 
Parry climetrics adapative organisation lkna13
Parry climetrics adapative organisation lkna13Parry climetrics adapative organisation lkna13
Parry climetrics adapative organisation lkna13Stephen Parry
 
Implementing Software Metrics at a Telecommunications Company -- A Case Study
Implementing Software Metrics at a Telecommunications Company -- A Case StudyImplementing Software Metrics at a Telecommunications Company -- A Case Study
Implementing Software Metrics at a Telecommunications Company -- A Case Studydheimann5
 
The Hybrid Workforce - Aquire Structure 2011
The Hybrid Workforce - Aquire Structure 2011The Hybrid Workforce - Aquire Structure 2011
The Hybrid Workforce - Aquire Structure 2011H3 HR Advisors, Inc.
 
To the Agile Go the Spoils: Why Lear
To the Agile Go the Spoils: Why LearTo the Agile Go the Spoils: Why Lear
To the Agile Go the Spoils: Why LearHuman Capital Media
 
Vc persistent systems venture relationship
Vc persistent systems venture relationshipVc persistent systems venture relationship
Vc persistent systems venture relationshipChristopher P. Geddes
 
S Ma Rt Presentation 2 2009
S Ma Rt Presentation 2 2009S Ma Rt Presentation 2 2009
S Ma Rt Presentation 2 2009mikei
 

What's hot (19)

Ems11 Programme
Ems11 ProgrammeEms11 Programme
Ems11 Programme
 
Lean Mythbusting for Staff, Managers and Executives.
Lean Mythbusting for Staff, Managers and Executives.Lean Mythbusting for Staff, Managers and Executives.
Lean Mythbusting for Staff, Managers and Executives.
 
How to Create an Authoring Infrastructure that Supports 24/7 Global Content D...
How to Create an Authoring Infrastructure that Supports 24/7 Global Content D...How to Create an Authoring Infrastructure that Supports 24/7 Global Content D...
How to Create an Authoring Infrastructure that Supports 24/7 Global Content D...
 
Apple Production Supplier Report - 2012 Progress Report
Apple Production Supplier Report - 2012 Progress ReportApple Production Supplier Report - 2012 Progress Report
Apple Production Supplier Report - 2012 Progress Report
 
Kk day 1 pm 4th speaker TONY SALES, DOST
Kk day 1 pm 4th speaker TONY SALES, DOSTKk day 1 pm 4th speaker TONY SALES, DOST
Kk day 1 pm 4th speaker TONY SALES, DOST
 
EFQM Excellence Model for Corporate Data Quality Management (CDQM)
EFQM Excellence Model for Corporate Data Quality Management (CDQM)EFQM Excellence Model for Corporate Data Quality Management (CDQM)
EFQM Excellence Model for Corporate Data Quality Management (CDQM)
 
Pure Insight Overview
Pure Insight OverviewPure Insight Overview
Pure Insight Overview
 
Accelerating science-led-innovation-whitepaper
Accelerating science-led-innovation-whitepaperAccelerating science-led-innovation-whitepaper
Accelerating science-led-innovation-whitepaper
 
Global Cloud Transformation: Setting the Stage for Success
Global Cloud Transformation: Setting the Stage for SuccessGlobal Cloud Transformation: Setting the Stage for Success
Global Cloud Transformation: Setting the Stage for Success
 
Aberdeen Survey Of Voice Users
Aberdeen Survey Of Voice UsersAberdeen Survey Of Voice Users
Aberdeen Survey Of Voice Users
 
Forrester Agile
Forrester AgileForrester Agile
Forrester Agile
 
Agile India 2018 Conference
Agile India 2018 ConferenceAgile India 2018 Conference
Agile India 2018 Conference
 
Parry climetrics adapative organisation lkna13
Parry climetrics adapative organisation lkna13Parry climetrics adapative organisation lkna13
Parry climetrics adapative organisation lkna13
 
Implementing Software Metrics at a Telecommunications Company -- A Case Study
Implementing Software Metrics at a Telecommunications Company -- A Case StudyImplementing Software Metrics at a Telecommunications Company -- A Case Study
Implementing Software Metrics at a Telecommunications Company -- A Case Study
 
The Hybrid Workforce - Aquire Structure 2011
The Hybrid Workforce - Aquire Structure 2011The Hybrid Workforce - Aquire Structure 2011
The Hybrid Workforce - Aquire Structure 2011
 
Smarter Planet: Life Sciences
Smarter Planet: Life SciencesSmarter Planet: Life Sciences
Smarter Planet: Life Sciences
 
To the Agile Go the Spoils: Why Lear
To the Agile Go the Spoils: Why LearTo the Agile Go the Spoils: Why Lear
To the Agile Go the Spoils: Why Lear
 
Vc persistent systems venture relationship
Vc persistent systems venture relationshipVc persistent systems venture relationship
Vc persistent systems venture relationship
 
S Ma Rt Presentation 2 2009
S Ma Rt Presentation 2 2009S Ma Rt Presentation 2 2009
S Ma Rt Presentation 2 2009
 

Viewers also liked

New Study Of Gita Nov 11 Dr Shriniwas J Kashalikar
New Study Of Gita Nov 11 Dr  Shriniwas J  KashalikarNew Study Of Gita Nov 11 Dr  Shriniwas J  Kashalikar
New Study Of Gita Nov 11 Dr Shriniwas J Kashalikarbanothkishan
 
2008 Airlines and Advocacy
2008 Airlines and Advocacy2008 Airlines and Advocacy
2008 Airlines and AdvocacyBrandon Murphy
 
CRIMINAL COMPLAINT ATTEMPTED MURDER BOYDEN GRAY
CRIMINAL COMPLAINT ATTEMPTED MURDER BOYDEN GRAY CRIMINAL COMPLAINT ATTEMPTED MURDER BOYDEN GRAY
CRIMINAL COMPLAINT ATTEMPTED MURDER BOYDEN GRAY Prayer Warriors Institute
 

Viewers also liked (7)

12 17 Williamsburg Christmas
12 17 Williamsburg Christmas12 17 Williamsburg Christmas
12 17 Williamsburg Christmas
 
arcuser46
arcuser46arcuser46
arcuser46
 
Social + Technology
Social + TechnologySocial + Technology
Social + Technology
 
New Study Of Gita Nov 11 Dr Shriniwas J Kashalikar
New Study Of Gita Nov 11 Dr  Shriniwas J  KashalikarNew Study Of Gita Nov 11 Dr  Shriniwas J  Kashalikar
New Study Of Gita Nov 11 Dr Shriniwas J Kashalikar
 
2008 Airlines and Advocacy
2008 Airlines and Advocacy2008 Airlines and Advocacy
2008 Airlines and Advocacy
 
edelweiss
edelweissedelweiss
edelweiss
 
CRIMINAL COMPLAINT ATTEMPTED MURDER BOYDEN GRAY
CRIMINAL COMPLAINT ATTEMPTED MURDER BOYDEN GRAY CRIMINAL COMPLAINT ATTEMPTED MURDER BOYDEN GRAY
CRIMINAL COMPLAINT ATTEMPTED MURDER BOYDEN GRAY
 

Similar to Early Lean Adopters Embrace Technology (Aberdeen Group Sector Insight)

CertiProf+Agile+Adoption+Report+2022+EN+(1).pdf
CertiProf+Agile+Adoption+Report+2022+EN+(1).pdfCertiProf+Agile+Adoption+Report+2022+EN+(1).pdf
CertiProf+Agile+Adoption+Report+2022+EN+(1).pdfssuser2ea238
 
The State of Business Intelligence
The State of Business IntelligenceThe State of Business Intelligence
The State of Business Intelligencetechweb08
 
AR-SA-2022-16th-Annual-State-Of-Agile-Report.pdf
AR-SA-2022-16th-Annual-State-Of-Agile-Report.pdfAR-SA-2022-16th-Annual-State-Of-Agile-Report.pdf
AR-SA-2022-16th-Annual-State-Of-Agile-Report.pdfRodrigo Costa, MSc, HCMP
 
High Efficiency in Manufacturing Operations
High Efficiency in Manufacturing OperationsHigh Efficiency in Manufacturing Operations
High Efficiency in Manufacturing OperationsFindWhitePapers
 
Agile in the New Year - From Projects to Products
Agile in the New Year - From Projects to ProductsAgile in the New Year - From Projects to Products
Agile in the New Year - From Projects to ProductsKeyedIn Projects
 
Is your business ready for a Digital Transformation?
Is your business ready for a Digital Transformation?Is your business ready for a Digital Transformation?
Is your business ready for a Digital Transformation?Alex Novadnieks
 
Are You Ready For a Digital Transformation?
Are You Ready For a Digital Transformation? Are You Ready For a Digital Transformation?
Are You Ready For a Digital Transformation? Kyler Miles
 
How to Use Technology to Support the Lean Enterprise
How to Use Technology to Support the Lean EnterpriseHow to Use Technology to Support the Lean Enterprise
How to Use Technology to Support the Lean EnterpriseFindWhitePapers
 
The Rise of Smart Operations
The Rise of Smart OperationsThe Rise of Smart Operations
The Rise of Smart OperationsUPS Longitudes
 
2010-11 World Quality Report
2010-11 World Quality Report2010-11 World Quality Report
2010-11 World Quality ReportCapgemini
 
Turning Quality Data into a Strategic Asset_Slides.pptx
Turning Quality Data into a Strategic Asset_Slides.pptxTurning Quality Data into a Strategic Asset_Slides.pptx
Turning Quality Data into a Strategic Asset_Slides.pptxNicole Connell
 
Drive Efficiency and Insights by Turning Quality Data into an Asset
Drive Efficiency and Insights by Turning Quality Data into an AssetDrive Efficiency and Insights by Turning Quality Data into an Asset
Drive Efficiency and Insights by Turning Quality Data into an AssetBrieLucia2
 
Lean Principles and Digital Transformation
Lean Principles and Digital TransformationLean Principles and Digital Transformation
Lean Principles and Digital TransformationUPKAIZEN
 
IDC: The Next Steps in Digital Transformation
IDC: The Next Steps in Digital TransformationIDC: The Next Steps in Digital Transformation
IDC: The Next Steps in Digital TransformationSOA PEOPLE
 
Toyota Lean Management
Toyota Lean ManagementToyota Lean Management
Toyota Lean ManagementRobynn Dixon
 
Embracing Agility Means Agility by the Business, for the Business
Embracing Agility Means Agility by the Business, for the BusinessEmbracing Agility Means Agility by the Business, for the Business
Embracing Agility Means Agility by the Business, for the BusinessTata Consultancy Services
 
5 Reasons Why Organizations Struggle to See “Value” in Agile & DevOps
5 Reasons Why Organizations Struggle to See “Value” in Agile & DevOps5 Reasons Why Organizations Struggle to See “Value” in Agile & DevOps
5 Reasons Why Organizations Struggle to See “Value” in Agile & DevOpsDevOps.com
 
Digital Refining Survey 2018
Digital Refining Survey 2018Digital Refining Survey 2018
Digital Refining Survey 2018accenture
 

Similar to Early Lean Adopters Embrace Technology (Aberdeen Group Sector Insight) (20)

CertiProf+Agile+Adoption+Report+2022+EN+(1).pdf
CertiProf+Agile+Adoption+Report+2022+EN+(1).pdfCertiProf+Agile+Adoption+Report+2022+EN+(1).pdf
CertiProf+Agile+Adoption+Report+2022+EN+(1).pdf
 
Mobility in ERP 2011
Mobility in ERP 2011Mobility in ERP 2011
Mobility in ERP 2011
 
Why Core IT Automation Matters to Your Customers
Why Core IT Automation Matters to Your Customers Why Core IT Automation Matters to Your Customers
Why Core IT Automation Matters to Your Customers
 
The State of Business Intelligence
The State of Business IntelligenceThe State of Business Intelligence
The State of Business Intelligence
 
AR-SA-2022-16th-Annual-State-Of-Agile-Report.pdf
AR-SA-2022-16th-Annual-State-Of-Agile-Report.pdfAR-SA-2022-16th-Annual-State-Of-Agile-Report.pdf
AR-SA-2022-16th-Annual-State-Of-Agile-Report.pdf
 
High Efficiency in Manufacturing Operations
High Efficiency in Manufacturing OperationsHigh Efficiency in Manufacturing Operations
High Efficiency in Manufacturing Operations
 
Agile in the New Year - From Projects to Products
Agile in the New Year - From Projects to ProductsAgile in the New Year - From Projects to Products
Agile in the New Year - From Projects to Products
 
Is your business ready for a Digital Transformation?
Is your business ready for a Digital Transformation?Is your business ready for a Digital Transformation?
Is your business ready for a Digital Transformation?
 
Are You Ready For a Digital Transformation?
Are You Ready For a Digital Transformation? Are You Ready For a Digital Transformation?
Are You Ready For a Digital Transformation?
 
How to Use Technology to Support the Lean Enterprise
How to Use Technology to Support the Lean EnterpriseHow to Use Technology to Support the Lean Enterprise
How to Use Technology to Support the Lean Enterprise
 
The Rise of Smart Operations
The Rise of Smart OperationsThe Rise of Smart Operations
The Rise of Smart Operations
 
2010-11 World Quality Report
2010-11 World Quality Report2010-11 World Quality Report
2010-11 World Quality Report
 
Turning Quality Data into a Strategic Asset_Slides.pptx
Turning Quality Data into a Strategic Asset_Slides.pptxTurning Quality Data into a Strategic Asset_Slides.pptx
Turning Quality Data into a Strategic Asset_Slides.pptx
 
Drive Efficiency and Insights by Turning Quality Data into an Asset
Drive Efficiency and Insights by Turning Quality Data into an AssetDrive Efficiency and Insights by Turning Quality Data into an Asset
Drive Efficiency and Insights by Turning Quality Data into an Asset
 
Lean Principles and Digital Transformation
Lean Principles and Digital TransformationLean Principles and Digital Transformation
Lean Principles and Digital Transformation
 
IDC: The Next Steps in Digital Transformation
IDC: The Next Steps in Digital TransformationIDC: The Next Steps in Digital Transformation
IDC: The Next Steps in Digital Transformation
 
Toyota Lean Management
Toyota Lean ManagementToyota Lean Management
Toyota Lean Management
 
Embracing Agility Means Agility by the Business, for the Business
Embracing Agility Means Agility by the Business, for the BusinessEmbracing Agility Means Agility by the Business, for the Business
Embracing Agility Means Agility by the Business, for the Business
 
5 Reasons Why Organizations Struggle to See “Value” in Agile & DevOps
5 Reasons Why Organizations Struggle to See “Value” in Agile & DevOps5 Reasons Why Organizations Struggle to See “Value” in Agile & DevOps
5 Reasons Why Organizations Struggle to See “Value” in Agile & DevOps
 
Digital Refining Survey 2018
Digital Refining Survey 2018Digital Refining Survey 2018
Digital Refining Survey 2018
 

More from FindWhitePapers

The state of privacy and data security compliance
The state of privacy and data security complianceThe state of privacy and data security compliance
The state of privacy and data security complianceFindWhitePapers
 
Is your data at risk? Why physical security is insufficient for laptop computers
Is your data at risk? Why physical security is insufficient for laptop computersIs your data at risk? Why physical security is insufficient for laptop computers
Is your data at risk? Why physical security is insufficient for laptop computersFindWhitePapers
 
Closing the gaps in enterprise data security: A model for 360 degrees protection
Closing the gaps in enterprise data security: A model for 360 degrees protectionClosing the gaps in enterprise data security: A model for 360 degrees protection
Closing the gaps in enterprise data security: A model for 360 degrees protectionFindWhitePapers
 
Buyers Guide to Endpoint Protection Platforms
Buyers Guide to Endpoint Protection PlatformsBuyers Guide to Endpoint Protection Platforms
Buyers Guide to Endpoint Protection PlatformsFindWhitePapers
 
VMware DRS: Why You Still Need Assured Application Delivery and Application D...
VMware DRS: Why You Still Need Assured Application Delivery and Application D...VMware DRS: Why You Still Need Assured Application Delivery and Application D...
VMware DRS: Why You Still Need Assured Application Delivery and Application D...FindWhitePapers
 
The ROI of Application Delivery Controllers in Traditional and Virtualized En...
The ROI of Application Delivery Controllers in Traditional and Virtualized En...The ROI of Application Delivery Controllers in Traditional and Virtualized En...
The ROI of Application Delivery Controllers in Traditional and Virtualized En...FindWhitePapers
 
The Economic Impact of File Virtualization
The Economic Impact of File VirtualizationThe Economic Impact of File Virtualization
The Economic Impact of File VirtualizationFindWhitePapers
 
Geolocation and Application Delivery
Geolocation and Application DeliveryGeolocation and Application Delivery
Geolocation and Application DeliveryFindWhitePapers
 
DNSSEC: The Antidote to DNS Cache Poisoning and Other DNS Attacks
DNSSEC: The Antidote to DNS Cache Poisoning and Other DNS AttacksDNSSEC: The Antidote to DNS Cache Poisoning and Other DNS Attacks
DNSSEC: The Antidote to DNS Cache Poisoning and Other DNS AttacksFindWhitePapers
 
Lean Business Intelligence - How and Why Organizations Are Moving to Self-Ser...
Lean Business Intelligence - How and Why Organizations Are Moving to Self-Ser...Lean Business Intelligence - How and Why Organizations Are Moving to Self-Ser...
Lean Business Intelligence - How and Why Organizations Are Moving to Self-Ser...FindWhitePapers
 
Inventory Optimization: A Technique for Improving Operational-Inventory Targets
Inventory Optimization: A Technique for Improving Operational-Inventory TargetsInventory Optimization: A Technique for Improving Operational-Inventory Targets
Inventory Optimization: A Technique for Improving Operational-Inventory TargetsFindWhitePapers
 
Improving Organizational Performance Through Pervasive Business Intelligence
Improving Organizational Performance Through Pervasive Business IntelligenceImproving Organizational Performance Through Pervasive Business Intelligence
Improving Organizational Performance Through Pervasive Business IntelligenceFindWhitePapers
 
IDC Energy Insights - Enterprise Risk Management
IDC Energy Insights - Enterprise Risk ManagementIDC Energy Insights - Enterprise Risk Management
IDC Energy Insights - Enterprise Risk ManagementFindWhitePapers
 
Enterprise Knowledge Workers: Understanding Risks and Opportunities
Enterprise Knowledge Workers: Understanding Risks and OpportunitiesEnterprise Knowledge Workers: Understanding Risks and Opportunities
Enterprise Knowledge Workers: Understanding Risks and OpportunitiesFindWhitePapers
 
Enterprise Information Management: In Support of Operational, Analytic, and G...
Enterprise Information Management: In Support of Operational, Analytic, and G...Enterprise Information Management: In Support of Operational, Analytic, and G...
Enterprise Information Management: In Support of Operational, Analytic, and G...FindWhitePapers
 
Enabling Strategy and Innovation: Achieving Optimized Outcomes from Planning ...
Enabling Strategy and Innovation: Achieving Optimized Outcomes from Planning ...Enabling Strategy and Innovation: Achieving Optimized Outcomes from Planning ...
Enabling Strategy and Innovation: Achieving Optimized Outcomes from Planning ...FindWhitePapers
 
Data Quality Strategy: A Step-by-Step Approach
Data Quality Strategy: A Step-by-Step ApproachData Quality Strategy: A Step-by-Step Approach
Data Quality Strategy: A Step-by-Step ApproachFindWhitePapers
 
Data Migration: A White Paper by Bloor Research
Data Migration: A White Paper by Bloor ResearchData Migration: A White Paper by Bloor Research
Data Migration: A White Paper by Bloor ResearchFindWhitePapers
 
Automating Stimulus Fund Reporting: How New Technologies Simplify Federal Rep...
Automating Stimulus Fund Reporting: How New Technologies Simplify Federal Rep...Automating Stimulus Fund Reporting: How New Technologies Simplify Federal Rep...
Automating Stimulus Fund Reporting: How New Technologies Simplify Federal Rep...FindWhitePapers
 
Asset Visibility: Seeing the Opportunity in Asset Management
Asset Visibility: Seeing the Opportunity in Asset ManagementAsset Visibility: Seeing the Opportunity in Asset Management
Asset Visibility: Seeing the Opportunity in Asset ManagementFindWhitePapers
 

More from FindWhitePapers (20)

The state of privacy and data security compliance
The state of privacy and data security complianceThe state of privacy and data security compliance
The state of privacy and data security compliance
 
Is your data at risk? Why physical security is insufficient for laptop computers
Is your data at risk? Why physical security is insufficient for laptop computersIs your data at risk? Why physical security is insufficient for laptop computers
Is your data at risk? Why physical security is insufficient for laptop computers
 
Closing the gaps in enterprise data security: A model for 360 degrees protection
Closing the gaps in enterprise data security: A model for 360 degrees protectionClosing the gaps in enterprise data security: A model for 360 degrees protection
Closing the gaps in enterprise data security: A model for 360 degrees protection
 
Buyers Guide to Endpoint Protection Platforms
Buyers Guide to Endpoint Protection PlatformsBuyers Guide to Endpoint Protection Platforms
Buyers Guide to Endpoint Protection Platforms
 
VMware DRS: Why You Still Need Assured Application Delivery and Application D...
VMware DRS: Why You Still Need Assured Application Delivery and Application D...VMware DRS: Why You Still Need Assured Application Delivery and Application D...
VMware DRS: Why You Still Need Assured Application Delivery and Application D...
 
The ROI of Application Delivery Controllers in Traditional and Virtualized En...
The ROI of Application Delivery Controllers in Traditional and Virtualized En...The ROI of Application Delivery Controllers in Traditional and Virtualized En...
The ROI of Application Delivery Controllers in Traditional and Virtualized En...
 
The Economic Impact of File Virtualization
The Economic Impact of File VirtualizationThe Economic Impact of File Virtualization
The Economic Impact of File Virtualization
 
Geolocation and Application Delivery
Geolocation and Application DeliveryGeolocation and Application Delivery
Geolocation and Application Delivery
 
DNSSEC: The Antidote to DNS Cache Poisoning and Other DNS Attacks
DNSSEC: The Antidote to DNS Cache Poisoning and Other DNS AttacksDNSSEC: The Antidote to DNS Cache Poisoning and Other DNS Attacks
DNSSEC: The Antidote to DNS Cache Poisoning and Other DNS Attacks
 
Lean Business Intelligence - How and Why Organizations Are Moving to Self-Ser...
Lean Business Intelligence - How and Why Organizations Are Moving to Self-Ser...Lean Business Intelligence - How and Why Organizations Are Moving to Self-Ser...
Lean Business Intelligence - How and Why Organizations Are Moving to Self-Ser...
 
Inventory Optimization: A Technique for Improving Operational-Inventory Targets
Inventory Optimization: A Technique for Improving Operational-Inventory TargetsInventory Optimization: A Technique for Improving Operational-Inventory Targets
Inventory Optimization: A Technique for Improving Operational-Inventory Targets
 
Improving Organizational Performance Through Pervasive Business Intelligence
Improving Organizational Performance Through Pervasive Business IntelligenceImproving Organizational Performance Through Pervasive Business Intelligence
Improving Organizational Performance Through Pervasive Business Intelligence
 
IDC Energy Insights - Enterprise Risk Management
IDC Energy Insights - Enterprise Risk ManagementIDC Energy Insights - Enterprise Risk Management
IDC Energy Insights - Enterprise Risk Management
 
Enterprise Knowledge Workers: Understanding Risks and Opportunities
Enterprise Knowledge Workers: Understanding Risks and OpportunitiesEnterprise Knowledge Workers: Understanding Risks and Opportunities
Enterprise Knowledge Workers: Understanding Risks and Opportunities
 
Enterprise Information Management: In Support of Operational, Analytic, and G...
Enterprise Information Management: In Support of Operational, Analytic, and G...Enterprise Information Management: In Support of Operational, Analytic, and G...
Enterprise Information Management: In Support of Operational, Analytic, and G...
 
Enabling Strategy and Innovation: Achieving Optimized Outcomes from Planning ...
Enabling Strategy and Innovation: Achieving Optimized Outcomes from Planning ...Enabling Strategy and Innovation: Achieving Optimized Outcomes from Planning ...
Enabling Strategy and Innovation: Achieving Optimized Outcomes from Planning ...
 
Data Quality Strategy: A Step-by-Step Approach
Data Quality Strategy: A Step-by-Step ApproachData Quality Strategy: A Step-by-Step Approach
Data Quality Strategy: A Step-by-Step Approach
 
Data Migration: A White Paper by Bloor Research
Data Migration: A White Paper by Bloor ResearchData Migration: A White Paper by Bloor Research
Data Migration: A White Paper by Bloor Research
 
Automating Stimulus Fund Reporting: How New Technologies Simplify Federal Rep...
Automating Stimulus Fund Reporting: How New Technologies Simplify Federal Rep...Automating Stimulus Fund Reporting: How New Technologies Simplify Federal Rep...
Automating Stimulus Fund Reporting: How New Technologies Simplify Federal Rep...
 
Asset Visibility: Seeing the Opportunity in Asset Management
Asset Visibility: Seeing the Opportunity in Asset ManagementAsset Visibility: Seeing the Opportunity in Asset Management
Asset Visibility: Seeing the Opportunity in Asset Management
 

Recently uploaded

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 

Recently uploaded (20)

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 

Early Lean Adopters Embrace Technology (Aberdeen Group Sector Insight)

  • 1. Manufacturing February 01, 2007 Early Lean Adopters Embrace Technology Market Segment Results from Aberdeen Group report, The Lean Supply Chain, indicates that Aerospace and Defense (A&D) manufacturers are 40% more likely to be Best in Class performers – companies that are characterized by having an integrated Lean approach and solution with technology enablers - than their peers from other industries. One of the reasons for this performance difference is their early adoption rate for Lean. The maturity of this industry is directly reflected in its increased rate of technology and lean tools utilization on the shop floor. Lean Adoption Lean is a philosophy that espouses continuous improvement, the simplification and standardization of business process, and the elimination of all forms of waste. A&D Manufacturers have taken the lead compared to their peers when it comes to adopting Lean philosophies and processes in their organizations. These manufactures are 81% more likely to have adopted Lean processes for more than 5 years, as compared to the general population. (Figure 1). Figure1: A&D Manufacturers: Taking the Lead in Lean Adoption 50% 29% 25% 21% 17% 18% 17% 16% 14% 15% 8% 8% Less than 1 year 1 to 3 years 4 to 5 years More than 5 years General Population A&D BIC A&D Source: AberdeenGroup, February 2007 Another interesting finding was the considerable difference in the adoption rates among the A&D manufacturers. Even in the same vertical, the Best in Class (BIC) companies are 72% more likely to have adopted Lean manufacturing processes for more than 5 years. This difference among the A&D manufacturers points towards the fact that there is still ample room for improvement among the A&D sector. Announcement For more Manufacturing research, join Manufacturing Advisor
  • 2. Early Lean Adopters Embrace Technology Sector Insight Page 2 Different Responses for the Same Challenges: Deploying Lean techniques and technologies in the manufacturing process can help companies to significantly improve their operational performance, customer responsiveness and hence the bottom line financials. But as the famous adage goes “it is easier said than done”; companies are facing challenges in implementing Lean concepts. Even with the early adoption rates, the A&D manufacturers are facing challenges similar to those faced by the general population. The challenge of ‘Cultural Change’ is a top issue that manufacturers in every industry vertical are currently facing. But interestingly, A&D manufacturers are responding to the challenge with a slightly different perspective. Figure2: Responding to the Lean Implementation Challenges 67% 58% 58% 48% 42% 42% Use external Lean domain expertise Engaged top management Took small, pragmatic steps to become Leaner A&D General Population Source: AberdeenGroup, February 2007 Companies that are relatively new in their Recommendations for Action Lean journey, start with taking small, pragmatic steps to become lean. This is √ Engage top management to facilitate the the approach followed by the majority of adoption of lean philosophies and technology. the manufacturers. Once they realize the √ For A&D manufactures trying to reach Best in early benefits of using Lean techniques Class performance levels- employ external they get aggressive with their strategy. consultants with greater domain expertise in A&D manufacturers have already passed Lean adoption. that stage and hence are following √ Utilize ERP as a foundation for Lean initiatives different tactics to respond to the and ensure ERP has specific functionality in challenges. Lean tools such as Kanban, Level Loading, and A&D manufacturers are more likely to Supermarket Sizing. leverage external domain expertise with the use of consultants and trainers to speed up their Lean initiatives. This is an important step by A&D manufacturers, taking in consideration the performance gap that exists in the vertical. A&D manufacturers that are early in their Lean journey can use some outside help to get in pace with the top performers in their field. Getting top management engaged with the Lean process is another important strategy followed by A&D manufacturers. In order to get and sustain buy in from top management, it is important to make them realize the short term as well as long term strategic benefits of adopting Lean tools. It becomes a lot easier for any company to address important issues © 2007 AberdeenGroup, Inc. Telephone: 617 723 7890 260 Franklin Street Fax: 617 723 7897 Boston, Massachusetts 02110-3112 www.aberdeen.com
  • 3. Early Lean Adopters Embrace Technology Sector Insight Page 3 when a decision comes from the top rather than from the grass root level. Commitment from top officials also helps to increase the technology adoption rate for the manufacturing processes. Technology Adoption Technology plays a crucial role when it comes to applying Lean concepts in manufacturing. Technology is used to increase collaboration across different levels of the organization. With companies expanding their supply chain globally, manufacturers are in need of Lean tools and a robust technology platform. This will help companies to address the challenge of growing complexity in the supply chain and also to adopt Lean on the shop floor and across the organization. Figure 3: Using ERP to Support Lean Strategy 100% 78% 56% General Population A&D A&D BIC ERP (as a general foundation for Lean) Source: AberdeenGroup, February 2007 A&D manufacturers have embraced the use of technology in their approach towards going Lean. They are 40% more likely to use ERP solutions as a general foundation for Lean as compared to other manufacturers. This difference is amplified among BIC A&D manufacturers. In fact, every single BIC A&D manufacturer benchmarked by Aberdeen utilizes ERP technology to support Lean initiatives. ERP solutions have come a long way from being used to manage the back office business processes to being used as a solution to encompass customer and supplier functions. As companies start realizing the real benefit of Lockheed Martin Electronic Systems using Lean tools across departments, they gradually move from the manual approach “In the late 1990’s we improved our competitive (pencil/paper and spread sheets) to the use of standing by coordinating both our business more automated applications – SCM (Supply processes along with our ERP implementation. Change Management). A&D manufacturers This put us in the position to aggressively being historically early adopters of Lean have promote Lean and Six Sigma across our business led this approach. This can clearly be seen in unit. Utilizing ERP in conjunction with our Lean Figure 4, where A&D manufacturers have and Six Sigma programs we have seen overtaken the general population in adopting significant improvements to both our product Lean tools, such as Kanban, Level Loading, cost and cycle time performance” Supermarket Sizing and Value Stream Frederick Musco, Director of Information mapping across the enterprise. The Aberdeen Technology Group attributes this increased adoption of Lean tools to the industry’s early adoption of Lean philosophies and the utilization of ERP as a foundation of Lean, all of which precede Best in Class performance. © 2007 AberdeenGroup, Inc. Telephone: 617 723 7890 260 Franklin Street Fax: 617 723 7897 Boston, Massachusetts 02110-3112 www.aberdeen.com
  • 4. Early Lean Adopters Embrace Technology Sector Insight Page 4 Figure 4: Utilization of ERP and SCM for Lean Tools Supply Integration 60% (Kanban) 54% 47% Plant/Line Execution 44% 43% (leveling & Takt time) 35% 38% Supermarket Sizing 20% 24% Value Stream Mapping 30% 28% (Cross-enterprise) 19% Value Stream Mapping 22% 27% (Plant level) 20% General Population A&D A&D BIC Source: AberdeenGroup, February 2007 Aberdeen Conclusion Many Aerospace and Defense manufacturers are enjoying a competitive advantage because of an early adoption of Lean tools. However, there are still considerable differences in the performance among A&D manufacturers. The best way for A&D manufacturers to achieve best in class performance is by using external domain expertise, and utilizing ERP with Lean specific functionalities as a foundation for implementing the above Lean tools. For those Aerospace and Defense manufacturers that are performing at the Best in Class level; continue utilizing technology to institutionalize Lean philosophies and continue to extend Lean initiatives across the supply chain. By implementing these strategies the Aerospace and Defense industry will continue to lead the Lean adoption curve and continue to enjoy performance benefits that are superior to almost all other industries. © 2007 AberdeenGroup, Inc. Telephone: 617 723 7890 260 Franklin Street Fax: 617 723 7897 Boston, Massachusetts 02110-3112 www.aberdeen.com
  • 5. Early Lean Adopters Embrace Technology Sector Insight Page 5 Related Research Upcoming Research The Lean Supply Chain Benchmark Manufacturing Flexibility, February 2007 Report, September 2006 The Lean Benchmark Report: Closing the Shop Floor Data Integration, March 2007 Reality Gap, March 2006 Author: Mehul Shah, Research Analyst, Manufacturing (mehul.shah@aberdeen.com) Matthew Littlefield, Research Analyst, Manufacturing (matthew.littlefield@aberdeen.com) Founded in 1988, AberdeenGroup is the technology- driven research destination of choice for the global business executive. AberdeenGroup has over 100,000 research members in over 36 countries around the world that both participate in and direct the most comprehensive technology-driven value chain research in the market. Through its continued fact-based research, benchmarking, and actionable analysis, AberdeenGroup offers global business and technology executives a unique mix of actionable research, KPIs, tools, and services. This document is the result of research performed by AberdeenGroup. AberdeenGroup believes its findings are objective and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by AberdeenGroup, Inc. and may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means without prior written consent by AberdeenGroup, Inc.