Financial KPIs

Consolidation of Financial KPIs

  • Throughput per Drum Hour
  • Throughput (T) KPI
  • (OE) Operating Expense KPI
  • Investment KPI
  • Inventory Cost KPI
  • Resource Overtime Cost KPI
  • WIP Inventory Cost KPI
  • Raw Material Inventory Cost KPI
  • (T/OE) Productivity KPI
  • (NP/I) Return on Investment KPI
  • WIP Carrying Cost KP
 

Throughput per Drum Hour

Throughput of Jobs scheduled on at least one Drum Resource divided by the capacity hours used on the Drum Resources.

Purpose

Jobs that use more Drum Resource capacity per unit of Throughput may be financially less attractive for your business since they are consuming critical resources while contributing less Throughput per hour of capacity consumed.

Calculation

Throughput per Drum Hour = SUM((T) Throughput) for Jobs scheduled on at least one Resource.Drum = true / SUM(Activity.ScheduledEndDate – Activity.ScheduledStartDate) for all Activities scheduled on Resource where Resource.Drum = true.

Significant Data

  • (T) Throughput
  • Resource.Drum
  • Activity.ScheduledEndDate
  • Activity.ScheduledStartDate

Special Considerations

Activities in Batches are counted individually, meaning that if two Jobs are batched on a Drum Resource then the Batch’s Scheduled Duration will be counted twice.

Only jobs that are scheduled on at least one drum resource are included in the sum of Job Throughput.

 

Throughput (T) KPI

Sum of Throughputs for Jobs scheduled to end within the Planning Horizon.

Calculation

Throughput = SUM( Job.Revenue – Job.Material Cost – Job.Subcontract Cost – Job.Shipping Cost – Job.Expected Late Penalty ) if Job completes before the end of the Planning Horizon

Significant Data

  • Job.Revenue
  • Job.Material Cost
  • Job.Subcontract Cost
  • Job.Shipping Cost
  • Job.Expected Late Penalty

 

(OE) Operating Expense KPI

Sum of Plant operating expenses, Resource Online Cost, Overtime Cost and Subcontract Cost

Calculation

(OE) Operating Expense KPI = SUM across all plants (Plant.DailyOperatingExpense * COUNT(Days with at least one active Resource with online time)) + Resource Online Cost + Resource Overtime Cost + Subcontract Cost

Significant Data

  • Plant.DailyOperatingExpense
  • Resource Online Cost
  • Resource Overtime Cost
  • Subcontract Cost

 

Investment KPI

Sum of Plant Investments and Inventory Costs.

Calculation

Investment = For all scheduled Jobs, SUM(MaterialRequirement.TotalRequiredQty * Item.Cost) + For all Warehouses, for all Inventory in Warehouses, SUM(Inventory.OnHandQty * Item.Cost) if Item.ItemType = Raw Material + For all Warehouses, for all Inventory in Warehouses, SUM(Inventory.OnHandQty * Item.Cost) if Item.ItemType = Intermediate or Item.ItemType = Subassembly + For all Warehouses, for all Inventory in Warehouses, SUM(Inventory.OnHandQty * Item.Cost) if Item.ItemType = Finished Good + Sum(Plant.InvestedCapital) across all Plants

Significant Data

  • MaterialRequirement.TotalRequiredQty
  • Item.Cost
  • Inventory.OnHandQty
  • Item.ItemType
  • Plant.InvestedCapital

 

Inventory Cost KPI

Sum of Job Raw Material and On-hand Raw Material, WIP and Finished Goods Inventory costs.

Calculation

Inventory Cost KPI = For all scheduled Jobs, SUM(MaterialRequirement.TotalRequiredQty * Item.Cost) + For all Warehouses, for all Inventory in Warehouses, SUM(Inventory.OnHandQty * Item.Cost) if Item.ItemType = Raw Material + For all Warehouses, for all Inventory in Warehouses, SUM(Inventory.OnHandQty * Item.Cost) if Item.ItemType = Intermediate or Item.ItemType = Subassembly + For all Warehouses, for all Inventory in Warehouses, SUM(Inventory.OnHandQty * Item.Cost) if Item.ItemType = Finished Good

Significant Data

  • MaterialRequirement.TotalRequiredQty
  • Item.Cost
  • Inventory.OnHandQty
  • Item.ItemType

 

Resource Overtime Cost KPI

The cost of all active Resources running either overtime or potential overtime shifts.

Calculation

Resource Overtime Cost = Sum across all Resources, Resource.OvertimeHourlyCost * Sum of all Overtime Interval Lengths on this Resource + Resource.OvertimeHourlyCost * Sum of all Potential Overtime Interval Lengths on this Resource.

Significant Data

  • Resource.OvertimeHourlyCost

 

WIP Inventory Cost KPI

Sum of On-hand Inventory Cost for Items of Type Intermediate or SubAssembly.

Calculation

WIP Inventory Cost = For all Warehouses, for all Inventory in Warehouses, SUM(Inventory.OnHandQty * Item.Cost) if Item.ItemType = Intermediate or Item.ItemType = Subassembly

Significant Data

  • Inventory.OnHandQty
  • Item.Cost
  • Item.ItemType

 

Raw Material Inventory Cost KPI

Sum of On-hand Inventory Cost for Items of Type Raw Material.

Calculation

Raw Material Inventory Cost = For all Warehouses, for all Inventory in Warehouses, SUM(Inventory.OnHandQty * Item.Cost) if Item.ItemType = Raw Material

Significant Data

  • Inventory.OnHandQty
  • Item.Cost
  • Item.ItemType

 

(T/OE) Productivity KPI

Throughput divided by Operating Expense.

Calculation

(T/OE) Productivity KPI = (T) Throughput / (OE) Operating Expense

Significant Data

  • (T) Throughput
  • (OE) Operating Expense

 

(NP/I) Return on Investment KPI

Net Profit divided by Investment.

Calculation

(NP/I) Return on Investment KPI = Net Profit / (I) Investment

Significant Data

  • Net Profit
  • (I) Investment

 

WIP Carrying Cost KPI

The sum of Operation Carrying Costs multiplied by the days between their start time and the Manufacturing Order end time.

Calculation

WIP Carrying Cost KPI = For all Operations where Operation.Scheduled = true, SUM((Operation.ScheduledEnd – Operation.StartDate) * Operation.Carrying Cost)

Significant Data

  • Operation.Scheduled
  • Operation.ScheduledEnd
  • Operation.StartDate
  • Operation.Carrying Cost

 

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