Key Performance Indicators (KPIs) are essential tools used in manufacturing management. These metrics can be used to measure the overall success of an organization or manage daily functions. Measurements help determine if operations are effective or if changes need to be made in order to avoid future inefficiencies and problems.
Which KPIs will help better manage business operations and become more efficient? Well, every aspect of the manufacturing process can be measured! It is important to quantify meaningful indicators that help the organization achieve its goals. Information is only valuable if it is used correctly to improve operations.
Examples of KPIs in Manufacturing
Hundreds of data sources are usually available, but too much information gets overwhelming. Below are some examples of the most commonly used KPIs in manufacturing.
- Count – The amount of product produced.
- Reject ratio – The ratio of unacceptable units resulting in scrap.
- Rate – How fast or slow machines produce goods.
- Target – Goals for rate and quality.
- Takt time – The length of time to complete a task (the average time between the start of production of one unit and the start of production of the next unit).
- Overall Equipment Efficiency – Measures resource utilization.
- Downtime – Any time the machines are not running.