KPIs in Production and Manufacturing

6/10/18 4:49 PM

Key performance indicators (KPIs), in a production facility, are used to measure performance through utilization of regulatory examination practices. Components that are pivotal to an operation are analyzed through data presented and provide insight into areas that are in need of improvement. This aids manufacturing and production industries in a variety ways, such as goal-achievement and determination of attributes that improve operational efficiency.

Key Performance Indicators and GanttDepartments within an operation can easily use KPIs and will allow for a simpler, more capable analysis of data to reach both short-term and long-term goals such as overall production efficiency. KPIs may also be incorporated into visual management tools for bench-marking and goal-setting.

Common Manufacturing KPIs

With KPIs, there are variations that depend on the organization or the department. These KPIs including the following:

  • Downtime - Breakdown, maintenance, anything that pertains to the hindering of production is measurable through KPI. Downtimes cost revenue, which is why it is considered important to be able to manage downtime and enhance productivity.
  • Takt Time - Task fulfillment is vital for projects and manufacturing operations. KPIs allow for visibility into bottlenecks, which will further enhance production through elimination of the constraints.
  • Rate - Production of product may differ through a variety of rates. As these variations are presented, there is an uneven balance of production speed and inventory. Managing the production times will promote a constant operation pace.
  • Ratio Rejection - Minimization of the amount of waste produced by materials can aid production facilities through coming closer to the overall efficiency point.
  • Overall Equipment Effectiveness (OEE) - A formula that consist of multiplying availability and performance and determines the amount of resources that are being utilized effectively.

KPIs are being used by manufacturing operations around the globe and are promoting intuition about productivity awareness and enhancement. In correlation with KPIs, advanced planning and scheduling (APS) systems have implemented KPIs along with various other attributes.

APS & Utilization of KPIs

KPIs in advanced planning and scheduling (APS) systems are another perk within the model that provide a visual aid to planners that make informed scheduling decisions. These KPIs capabilities include analysis pertaining to balance objectives and tracking cost. KPIs are one of the tools included with APS along with various others that pertain to productivity performance such as:

  • Modeling Capabilities
  • User Interface
  • Optimization/Planning Speed
  • What-If Scenarios & Impact Analysis
  • Multi-Plant Capabilities

Advanced planning and scheduling systems (APS) are compatible with any size manufacturing operation and are a step in the direction of enhancing productivity, accuracy, and overall production efficiency.

Related KPI Enhancement Through "What-If Scenarios" Video 

 APS Resources

Topics: Advanced Planning and Scheduling, manufacturing, KPI, production planning, Implementation, APS, theory of constraints, analytics, Capacity Modeling, challenges in supply chain, bottleneck visibility, materials planning, Automation

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