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At many industrial companies, the production operations area has gone through various improvement efforts—but there is still room to do better. According to a recent study by Accenture, a majority of productions operations leaders believe that higher levels of performance need to be achieved in asset utilization, efficiency of production personnel, cost of quality, cost of inventory and utilities consumption.
Production operations are often unable to take full advantage of IT to manage and improve operations. The problem, in essence, is that there is typically a gap between the traditional corporate IT function and groups overseeing the frontline operational technology (OT) that supports production. But technology today plays a larger role in every aspect of business, and that includes production operations. IT systems and OT systems have become more and more connected and interdependent—they are converging. However, the organizational structures that oversee those areas have not kept pace, and IT and production operations often work quite independently. Many industrial companies are now working to reorganize their approach to OT in order to reflect this new reality. But often, it is not clear what the right approach should be—who in fact should be responsible for and “own” OT?
This benchmarking study assessed the approaches that companies are using to support IT in their production operations. The study looked at organizational models, roles and accountability—and explored what is working and what is not. The study’s findings provide insights that can help companies make the most of the trend toward IT-OT convergence, and use IT in production operations to help build high-performance businesses.
Javier CortinaManaging Director
Stephan KotzeManaging Director
Henning MüllerManaging Director
Bianca ScholtenSenior Manager
Constantino SeixasManaging Director
May 1, 2014
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