Key Performance Indicators (KPI)

Introduction

The KPI or key performance indicator is yet another visual tool to aid planners in making informed scheduling decisions. Every action such as optimize or move is represented on the horizontal axes while the corresponding outcome can viewed on the vertical axes.

Key Concepts

The KPI Pane is important to the APS being more than just a scheduling tool, but also as an analytical suite to balance multiple objectives from many different perspectives. For every action and scheduling choice made within APS there are a number of factors that are affected.

For example, decreasing the number of late Jobs might be a great change in terms of order delivery and customer satisfaction, but may not be financially feasible in the long run. On the other hand, reducing costs is profitable, but may also come at the price of upsetting customers with late deliveries.

KPIs are therefore used so that planners and C-level officers can see the costs and benefits of the proposed schedule. The KPI pane has a variable number of indicators or criteria that can be tracked and the graph will show how each schedule change affects the tracked criteria. Each point on the graph serves as a possible undo point, and the planner can use the graph to "undo" back to any action by simply clicking on the point and selecting "Undo back to this point".

Additionally, What-If scenarios can be used to run simulations and determine the effect of changes on KPI. Comparing the Scenarios from the What-If section of the ribbon will show the different KPIs of the scenarios compared to each other side by side. The Impact Analysis window (which can be enabled in User preferences) also shows the impact on KPI as changes are made.

Using KPI to Track Cost

KPI is the best tool within APS to aggregate cost information. There are two KPIs that currently relate to cost:

Finished Goods Carrying Cost (10% APR): The interest rate adjusted cost of carrying the Finished Goods inventory until the Need Date.  Learn more

WIP Carrying Cost (10% APR): The interest rate adjusted cost of carrying WIP inventory (duration of the Job from Start to End).  Learn more

Please note that both indicators use Total Cost of the Job which is the sum of material plus machine costs. If you're only interested in one or the other you can set the irrelevant cost to zero.

Resource Cost Types

Each Resource can be assigned two cost rates, a Standard Hourly Cost and an Overtime Hourly Cost. When an Operation is scheduled on a Resource, its duration is multiplied by either the Standard or Overtime Hourly Cost to calculate the cost for that Operation depending on whether the Capacity Interval is defined as a Regular Online or an Overtime capacity interval. A Job's machine cost is the sum of the cost of all of its Operations.

KPI Calculators

Each KPI is calculated by a "KPI Calculator". The KPI Calculators that are included with the system are shown below. In addition, custtom KPI Calculators can be easily programmed by implementing the IKpiCalculator interface of the API, which is also described below.

Included KPI Calculators

Customer Service:

  • Late Jobs - The number of Jobs that are scheduled to finish after their Need DateTime.  Learn more
  • % Late Jobs - The percent of all Jobs that are Late.  Learn more
  • Late Hot Jobs - The number of Hot Jobs that are Late.  Learn more
  • Overdue Jobs - The number of Jobs that have their NeedDateTime in the past.  Learn more
  • Average Lateness (days) - The average number of days that Late Jobs are scheduled to finish after their Need DateTime.  Learn more.
  • Leadtime average (days) - The average number of days between the earliest scheduled operation start and latest scheduled operation finish.  Learn more
  • On-Time Sales Orders (%) - Percent of scheduled sales orders Jobs that are on time. Learn More
  • Late Sales Orders - Number of jobs that have a classification of sales order and scheduled late. Learn More
  • Late Units - Sum of Job quantities that are late and open. Learn More

Financial:

  • Late Jobs Revenue (currency) - The sum of revenue of Jobs that are Late.  Learn more
  • This Qtr Revenue (currency thousands) - The sum of revenue of Jobs ending in this Qtr. (Note: The Fiscal Year is set in System Options.)  Learn more
  • Daily Revenue (currency thousands) - The daily average of revenue of Jobs ending in the Short Term.  Learn more
  • Daily Production (units) - The daily average of total Manufacturing Order Required Quantities of Jobs ending in the Short Term.  Learn more
  • Late Penalty + Setup + FG Carrying Cost - Job Lateness x Job Late Penalty plus Job Setup Cost plus finished goods Inventory Carrying Cost for scheduled Jobs.  Learn more
  • Late Sales Order Revenue - Sum of revenue of jobs that have a classification of sales order that is scheduled late. Learn More

Efficiency/Output:

  • Resource Utilization (%) - The percent of available time (Online, Overtime or Potential Overtime) across the Schedule Span that is scheduled to be busy (with setup, run, etc.).  Learn more
  • Drum Resource Utilization (%) - The percent of available time (Online, Overtime or Potential Overtime) across the Schedule Span on Resources marked as Drums that is scheduled to be busy (with setup, run, etc.).  Learn more
  • Daily Setup Hours - The daily average of Setup Hours in the Short Term.  Learn more
  • Total Setup Calendar Hours - The total scheduled Setup Hours in the entire schedule based on calendar time (independent of the number of Resources used during the setup).  Learn more
  • Total Setup Labor Hours - The total scheduled Setup Hours in the entire schedule based on the number of utilized Resources that have a Resource Type that is a type of person.  Learn more
  • Total Setup Cost - The total scheduled Setup Hours times Resource Standard Cost.  Learn more
  • Schedule Span (days) - The total time from the start of the first job to the end of the final job.  Learn more

Inventory:

  • Wip Carrying Cost (at 10% APR) - The sum of Operation Carrying Costs multiplied by the days between their start time and the Manufacturing Order end time.  Learn more
  • Finished Goods Carrying Cost (at 10% APR) - The sum of the Operation Daily Carrying Costs times the number of days early for the Manufacturing Order.  Learn more

Throughput Accounting

  • Throughput (T) - Sum of Throughput for Jobs scheduled to end within the Planning Horizon.  Learn more
  • WIP Cost -S um of On-hand Inventory costs for Items marked as Intermediates or SubAssemblies.  Learn more
  • Raw Materials Cost - Sum of On-hand Inventory cost for Items marked as Raw Materials.  Learn more
  • Inventory Cost - Sum of Raw Materials consumed by Jobs and On-hand Raw materials, WIP, and Finished Goods Inventory costs.  Learn more
  • Investment (I) - Sum of Plant Investments and Inventory Costs.  Learn more
  • Resource Online Cost - Sum of Active Resource costs during regular Online Capacity Interval time.  Learn more
  • Resource Overtime Cost - Sum of Resource costs during Overtime Online Capacity Interval time.  Learn more
  • Subcontract Cost - Sum of subcontract costs for scheduled Jobs.  Learn more
  • Operating Expense (OE) - Sum of Plant operating expenses (daily expense times the number of days over which at least one Resource has an Online Capacity Interval), Resource Online Cost, Subcontract Cost, and Overtime Cost.  Learn more
  • Productivity (T/OE) - Throughput divided by Operating Expenses.  Learn more
  • Investment Turns (T/I) - Throughput divided by Investment.  Learn more
  • Net Profit (T-OE) - Throughput minus Operating Expense.  Learn more
  • Return on investment (NP/I) - Net Profit divided by Investment.  Learn more
  • Throughput Per Drum-Hour  (T/Drum) - Throughput of Drum Jobs divided by the hours of Drum capacity they use.  Learn more
  • Throughput Late - Sum of throughput for open Late Jobs.  Learn more