METHODOLOGIE
Measuring the success of the implementation of digital tools on an industrial site - Focus on a production planning solution
10/05/2023
Reading time: 5min
The implementation of a digital tool within a site or an industrial group results from the identification of one or more irritants common to a certain volume of stakeholders.
These implementations often represent long-term projects, which involve several people on a site, and represent a cost, both in terms of the solution itself and in terms of the time spent to implement them.
Like any project aimed at increasing yield or improving a process, it will be necessary to measure whether the implementation of the solution is a success. To do this, it will be necessary to establish “quantitative” KPIs and also take into account so-called “qualitative” elements.
The collection of qualitative feedback is important because the experience is often more complex than just tasks removed or hours saved.
Who will measure the ROI?
If you need a person with a macro view to collect and centralize data and user feedback, it is important that it is the field resources who lead this measurement of ROI. They will be best placed to explain how their daily life has changed, what the identified gains are, whether they are quantitative or qualitative.
If it is the corporate that imposes a model, or simply one stakeholder, there is a risk of missing out on relevant ideas and indicators that will help measure the effectiveness of the tool.
Benchmark of drivers
It is not recommended to benchmark a site or a UAP against others. Indeed, their management will not necessarily be conducted based on the same KPIs and objectives (stocks, deadlines, business delays...), their starting points will be different, and the gains will not all be seen and considered in the same way.
The objective is to obtain at least four positive occurrences in order to verify the ROI while also conceding from the outset that, since we do not always start from the same starting point in all pilot factories in terms of underlying digital maturity, the ROI cannot be identical.
In this case, to establish an ROI, an indicator such as the adherence rate to objectives during the implementation of an industrial planning solution will be relevant. Depending on the rate, it will be necessary to try to understand whether a low rate results from a epiphenomenon or if it is a more structural issue.
Finally, it will also be necessary to take into account the fact that not all sites have the same rhythms, since some have S&OP rhythms every week, others every two weeks, and others once a month. So inevitably, if the frequency is higher, the ROI will be greater or visible more quickly.
The other indicators to observe
To measure the success of implementing an industrial planning solution, several KPIs can be established apart from the adherence rate that will help broaden the view of what a successful implementation is:
The satisfaction rate related to adoption: The end-users of an industrial planning solution are not all leaders in the project of implementing the solution, nor are they all volunteers, therefore, measuring strictly the adoption rate will not be relevant.
However, we can measure a "satisfaction" rate based on several qualitative and quantitative criteria such as the tool's ergonomics, its relevance, the time saved, etc.
Satisfaction surveys or individual interviews can help assess whether employees are satisfied and if the solution meets their needs.
The productivity rate: The productivity rate can evaluate the productivity of employees and also measure that of your production site. Productivity can be measured in terms of saved working hours, automated tasks, or increased production.
Quality: It is important to verify that the planning solution, by improving productivity, also helps to reduce errors and defects, or at a minimum does not have a negative impact on the quality of finished products.
Costs: After a pilot of 3 months, for example, a calculation of savings or cost gains realized thanks to the use of the planning solution should be conducted. This may include productivity gains, time savings, etc.
Response time: If the planning solution includes the reporting of incidents (breakdowns, absences…), it will be relevant to observe the speed with which problems are resolved and decisions are made. A reduction in response time may indicate an improvement in operational efficiency.
Innovation: Assess the impact of adopting digital tools on innovation and the company's ability to implement other new digital solutions or continuously improve its production processes.
The health and quality of data: Assess whether the solution has had an impact on the data collected, used, and communicated on a daily basis. Can all stakeholders on the site finally speak a common language and rely on the data they have?
Conclusion
To obtain a comprehensive assessment of the success of implementing digital tools, whether it is an industrial planning solution or otherwise, it will therefore be necessary to engage your field teams to the maximum and allow them the freedom to report any information they deem relevant. Then, you will need to follow up with them, asking them to express their thoughts on topics that other field teams might have observed.
Finally, it is possible that extremely positive things may be observed and reported, such as the man-hours saved generating the creation and availability of services, but they will be difficult to measure in the ROI. Each site or UAP will need to judge the importance of these gains in their evaluation.
→ Learn more about implementing a digital solution within an industrial group