Friday, May 10, 2013

Processes and Technology Not Processes or Technology

Many of us in the reliability world love to implement new technology in our plants. It might be a condition monitoring tool or a new piece of software like a EAM or CMMS. Today I wanted to share with you a study and graphic that shows the return on investment of both technology and process as well as the two together. In the beginning you start in the red box and you implement new toys and technology and you end up in the yellow box with a negative 7 percent return on investment from your new tools in old processes. So what if we went after better business processes first. By re-engineering our business processes and removing the waste we are able to generate a 27 percent return on investment and arrive in the blue box. Not a bad return but, if we combined our new processes with our new technology we are able to get a return on investment that is very respectable 75 percent and land in the orange square. It is the "synergy of and" versus the "tyranny of or." In the end for the most success we need both in our strategies. You need the processes to start the improvements and then the tools to support the processes for efficiency.

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