Measuring your quality metrics can allow your production facility to collect and analyze relevant data within production and develop a much more concise picture of how well your overall supply chain is operating. Locating the right metrics can aid in locating weak spots in the production line and within the overall manufacturing process, which will also aid in developing a strategy to further optimize production and boost efficiency. Within this approach, you can not be unsystematic about it. When it comes to collecting the right metrics in the correct manner, you will also need an adequate process in place to review and then act on the overall results. Therefore, here are five examples of important manufacturing metrics to measure within production.
5 Examples of Important Manufacturing Metrics to Measure
The five examples of important manufacturing metrics to measure include the following:
- Manufacturing Cycle Time - By far one of the most important metrics to measure, cycle time is the total time from the beginning of the process to the end. Within manufacturing, it is the process in which it measures the amount of time taken for a product to pass through all machines, cycles, and processes to then become a completed product. Any time that an item spends within the manufacturing process from order release to completion is considered “total manufacturing cycle time”. Effectively reducing this time will enable reduced cost, enhanced response to consumers, and overall increased flexibility.
- Overall Equipment Effectiveness - Overall Equipment Effectiveness (OEE) pertains to the analysis of efficiency and productivity and is by far one of the most important measurement tools pertaining to key performance indicators (KPIs). OEE measures productivity through utilizing the formula availability x performance x quality (A x P x Q) and may be used to calculate an individual piece of equipment as well as an entire production line. The better your OEE score is, the more profitable and cost-effective your manufacturing operation will be as well.
- Availability - This metric pertains to the ratio of operating time and planned production time. Operating time is any planned production time minus any downtime, which is the period of time where production may be stopped. Availability is a key metric within manufacturing that is a direct indicator for production availability.
- Throughput - By far, throughput is an extremely important manufacturing metric within production. Throughput measures any average number of units being produced on a piece of equipment, a line, unit, or plant over a given period of time (units per minute). If throughput decreases, then this means that there is a problem on the production line that needs to be dealt with immediately. Enhancing your overall throughput can easily be achieved through utilizing automated equipment as well as lean processes.
- Capacity Utilization - Operations managers favor this metric due to the indication of how much total manufacturing output capacity is being utilized at a given point in time. Capacity Utilization is displayed as a percentage of total potential output and the metric provides insight into overall slack within the production facility.
A software that has become prominent within manufacturing operations includes advanced planning and scheduling software. Advanced planning and scheduling software can offer thorough insight into your production facility quality metrics and enable you to locate areas that are in need of improvement.
Advanced Planning and Scheduling Software
Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.
- Create optimized schedules balancing production efficiency and delivery performance
- Maximize output on bottleneck resources to increase revenue
- Synchronize supply with demand to reduce inventories
- Provide company-wide visibility to capacity
- Enable scenario data-driven decision making
Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.