Performance mesauring in manufacturing company

OEE is useful as both a benchmark and a baseline: As a benchmark it can be used to compare the performance of a given production asset to industry standards, to similar in-house assets, or to results for different shifts working on the same asset. As a baseline it can be used to track progress over time in eliminating waste from a given production asset.

Performance mesauring in manufacturing company

Increasing Flexibility and Innovation Cost reduction and profitability increase After carefully analyzing all of the measures in the study, we have chosen the top 10, which in our opinion is must have for every manufacturing operation, big or small.

Cost reduction and profitability increase Manufacturing Cost per Unit — calculated by dividing the total number of units produced by their production cost, excluding material spending.

The number shows how effectively the current resources are utilized, whether human resource and equipment usage cost is on track. Productivity in Revenue per Employee — Similar to the previous indicator, productivity per employee is calculated by dividing all generated revenue by the number of all employees.

This can be calculated on several levels, on a company level, on a department level and even production line level. Revenue per employee shows areas with lowest and biggest ROI. Downtime in Proportion to Operating Time — calculated as ratio between the time production lines were stopped and time when they were operating.

This ratio is a direct indicator of asset availability for production. The lower the number, the more efficiently manufacturing equipment is used. If the ratio is 0. Supplier Quality Incoming Material Quality — the quality of materials usually determines the quality of end product.

If the quality of materials supplied is low, this increases the spending for product repairs. In best case it means extra cost to manufacturer.

Performance mesauring in manufacturing company

Can be calculated also in different ways: Tracking this KPI helps to understand whether the supplier is realiable or not. Customer Experience On-Time delivery — tracking this KPI helps to understand whether the product is shipped as promised or with delays and helps to prevent conditions where customers would leave unsatisfied with the service.

It will also help to identify possible issues in customer logistics. Yield — in simple terms measures level of product quality. It is the number of good units without rework or scrap coming from production line.

High yield means all elements of manufacturing process are working fine and there is no issue with material quality, workers qualification or equipment. Low yield might mean that there are problems somewhere during the manufacturing process. This is one of the key metrics that signals that something is wrong and a closer investigation into the process is needed.

Operations Efficiency Capacity Utilization — shows at which rate manufacturing facility is using its production capacity. In simple words, whether its production capacity is used effectively or not.

It is a relationship between actual output, that is actually produced with installed equipment and potential maximum output, that can be produced with the same equipment.

The higher the rate, the more effectively equipment is used. Schedule or Production Attainment — ability of a production to execute a plan. In manufacturing, planning plays very important role. The more complex manufacturing processes are, the more important is the ability to execute the plan, but also it is more difficult to achieve.

Matching the schedule of production to produce certain amount of output according to the plan is very important if manufacturer wants to meet expectancies of the customers and corporate strategy.

This performance indicator can be calculated as the difference between planned output and real output, divided by planned output. Inventory turnover control — extra inventory means tying up valuable financial and real estate resources.In last month's column, I described some key manufacturing performance measures.

Performance mesauring in manufacturing company

This month, I will explain how these performance measures can be used to manage a manufacturing business. Sales booking performance to sales plan (current month and year-to-date): While both the current month and year-to-date measures are important, .

You can use multiple performance indicators to measure CSR, including customer satisfaction scores and percentage of customers repeating a purchase. Net Promoter Score (NPS): Finding out your NPS is one of the best ways to indicate long-term company growth. With respect to special characteristics of pharmaceutical industry and lack of reported performance measure, this study tries to design an integrated PM model for pharmaceutical companies.

For generating this model; we first identified the key performance indicators (KPIs) and the key result indicators (KRIs) of a typical pharmaceutical company.

May 26,  · For example, an improvement in manufacturing time may be expected to increase the company's revenues. The company would monitor revenue, along with other factors like profit, from the time the changes were instituted and on to measure how the change in process affected 95K.

A performance measurement system such as the Balanced Scorecard allows an agency to align its strategic activities to the strategic plan.

It permits -- often for the first time -- real deployment and implementation of the strategy on a continuous basis. Productivity Commission Staff Working Paper Productivity in Manufacturing: Measurement and Interpretation Paula Barnes Leo Soames Cindy Li Marcelo Munoz.

Manufacturing performance indicators