A very interesting article, even the best (Masters) are averaging only 82% forecast accuracy, so how do they handle the unexpected?
Compared to the Laggards group the Masters have:
- 45% lower average lead times
- 54% shorter throughput time
These certainly help! I think the two most compelling metrics from this study are:
"Automatic notices to respond" where the Masters group has 4x the capability (59% versus 14%)
"Respond to Disruptions" where the masters group has 3x the capability (59% versus 19%)
Clearly these competitive advantages provide the means to mitigate the unexpected.
One could argue, that thier MRP/ERP system gives plenty of automated notices. Indeed! My experiance has been with these systems is there are so many messages they never get worked before the messages become obsolete, and the methods for prioritizing those messages are limited.
So what separates the Masters from the Laggards? Perhaps a clue is found in these words from the article:
"Three times as many masters used up-to date information and dynamic planning models to repond rapidly ... and are far more likely ... to use technology to automatically monitor key events and have formalized processes...