How does a company achieve maximum profit when labor and scarce materials are constantly fluctuating in price and availability? Determining the optimal combination of labor, materials and process can be difficult when its prices and customer demand are continually changing. Finding the optimal combination means gathering actual consumption data from operations through real-time data collection and linking it to contextual financial data in the ERP system. This is the vision of Cormetech, the 2011 MESA Metrics Makeover winner. This innovative new model for real-time decisions is expected to quickly become an industry best practice for cost validation and estimation in this engineer-to-order manufacturing process.
Cormetech’s vision was realized through an Enterprise Manufacturing Intelligence (EMI) tool which links with a costing and profitability scenario analyzer. Visibility of key EMI metrics allowed executives, management and users at Cormetech to take action and respond to the changing market and shop floor conditions to optimize: the process, the financial impact and to meet the needs of their customers despite changing prices and demand. The business case presented in this webcast represents both a real-world example and alignment with the concepts and guidelines of MESA’s metrics teams.