Cincom Report: Gap Widening Between Aerospace and Defense 'Haves' and 'Have Nots'

Lean manufacturing lacking in A&D industry
CINCINNATI, June 18 /PRNewswire/ -- Only 23% of aerospace and defense (A&D) manufacturers surveyed have implemented demand-driven manufacturing tactics such as electronic Kanban, lean manufacturing techniques and shared business processes.
View multimedia release: Cincom Report: Gap Widening Between A&D "Haves" and "Have Nots": (http://www.cincom.com/newsroom/?p=91)
This is according to a 2009 research report by software maker Cincom Systems (www.cincom.com/acquire) based on a national survey to sales and IT executives. The findings show how A&D organizations are managing their businesses for increased efficiency and effectiveness.
Redundancy Rules for Mixed-Mode Manufacturing
Nearly 50% of A&D manufacturers rely on redundant data input (limited amount of shared data between manufacturing modes) to manage their mixed-mode manufacturing processes. Other preferred processes included electronic Kanban/lean manufacturing (23%) and manual processes (8%), with the fewest respondents using an automated, integrated system.
Redundant input processes not only increase the likelihood of errors, but translate to multiple payments for the same process, according to Lou Washington, Cincom senior marketing analyst and co-author of the Cincom report. "A&D manufacturers should focus on getting order-capture, order-status and order-management processes as efficient as possible first and then automating them. This frees up one of the most valuable resources companies have - the time to address customers' unmet needs and invest in becoming a trusted advisor."
Lack of Lean Project Management
"Not having integrated project management to guide lean manufacturing is a lot like trying to steer a ship across the Atlantic without a compass," said Washington. Yet, only 8% of those surveyed use integrated project management with lean manufacturing. This egregious gap could be filled by the other 92% implementing some form of real-time reporting with their project-management process.
Most Don't Integrate with Other Crucial Systems
Slightly more than one-third of A&D manufacturers surveyed (38%) have project-management integration with accounting, finance or customer-management systems. However, this means that nearly two-thirds (62%) have no project-management integration with these systems. This creates a gap between advanced manufacturers who can create profit and loss statements per project and those who lack insight into their projects' profitability.
For a copy of Cincom's "2009 Aerospace and Defense Industry Survey Report," visit www.cincom.com/ADebook.
About Cincom Systems
For 40 years, Cincom's problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom's products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com, or visit the company's website at www.cincom.com.