TPI is a program designed to markedly increase manufacturing productivity by up to 30 to 40% at a facility level.
It accomplishes this by benchmarking key productivity factors, identifying resulting performance gaps, and assisting manufacturers in closing those gaps.
There are many factors influencing a company’s level of productivity. Movement in one or all of these areas will help a company increase productivity. TPI will establish diagnostic assessment tools in five key factor areas relating to manufacturing productivity:
- Growth & Innovation
- Technology Implementation
- Human Capital
- Operational Excellence
- Leadership & Management Structure & Culture
THE PRODUCTIVITY IMPERATIVE
The correlation between productivity and Gross Domestic Product growth is nearly one-to-one. The average overall productivity growth rate in the United States from 2007 to 2016 was 1.7 percent—well below the long-term average of 3.2 percent — according to the Bureau of Labor Statistics (BLS). The BLS also reported that over the past four years, manufacturing sector productivity growth increased at an annual rate of less than 1 percent.
Lagging productivity growth causes a drag on economic expansion. Lifting the manufacturing sector out of this productivity slump in Wisconsin is the mission of the Transformational Productivity Initiative (TPI). This is a call to action for Wisconsin and the state’s manufacturers. It is a public-private partnership, assembled to provide leadership for Wisconsin’s manufacturers on the challenges they face in achieving productivity growth.
CLOSING THE PRODUCTIVITY GAP
The research on productivity is extensive and the findings are clear. A study by McKinsey Global Institute, a private sector think tank, published in November 2016 states that nearly 75 percent of the productivity growth required to reignite the economy can be achieved by closing the gap between lagging and best-in-class companies. The practices that separate those near the top of their industry from those at or near the bottom are well documented. Closing the gap is not rocket science, but it does require a top-down commitment, which to date has proven elusive for many firms. Companies at or near the top in their industry are nearly twice as productive as those at or near the bottom.
The top performers maintain their competitive advantage by exploiting advances in technology – often described as the fourth industrial revolution, Industry 4.0, or the Industrial Internet of Things. The remaining 25 percent of productivity growth will result from technological, operational or business innovations that go beyond today’s best practices and expanding the frontier.
The goal of TPI is to increase productivity at the company level, and to bring these improvements to a scale where the aggregate gains drive economic expansion in the state of Wisconsin.
The benefits of increasing productivity are:
- Making businesses more profitable
- Raising living standards for Wisconsin employees
- Keeping Wisconsin manufacturing competitive in the global marketplace
The videos below provide an informative view of the MOPS survey. These are presented by Enno Siemsen. Professor Siemsen is Associate Dean of the MBA and Masters Programs, Executive Director of the Erdman Center for Operations & Technology Management, He is also a Professor – Erdman Center for Operations and Technology Management, Operations & Information Management, Procter & Gamble – Bascom Professor.
His research interest includes; management practices and productivity, sales and operations planning, supply chain management, quality and environmental inspections and behavioral decision making.
- Video #1 (4:10) MOPS Survey Introduction
This introductory video provides an overview that describes how the U.S. Census Bureau conducts the MOPS survey, why it is important and how management practices matter.
- Video #2 (6:35) MOPS Management Score
This video describes the MOPS Management Score including the scoring methodology and benchmarking best practices along with an introduction to the online survey.
- Video #3 (10:58) Management Practices and Performance
This video reviews the implications of the MOPS management score and how the management score correlates to different outcome metrics like productivity, growth and profitability.
- Transformational Productivity: Can Productivity Save the Day?
Manufacturing First Expo & Conference on October 24th, 2018, Green Bay, Wisconsin
- Presented by:
- Enno Siemsen UW-Madison – Procter & Gamble Bascom Professor
- Randy Bertram WMEP – Director of Sustainability and Operational Excellence Services