1. KPI EXAMPLES FOR THE MANUFACTURING INDUSTRY MEM673
1.1. Key Performance Indicators
1.1.1. Well defined measurement to monitor, analyze and optimize production processes regarding their quantity, quality as well as different cost aspects
1.2. Production Volume
1.2.1. This first KPI shows what your factories are able to produce in a month, a semester, or a year. You have the big picture of your business; that's the task. Regressing it to previous period by dashboard comparison shows evolution, minimising, or zeroing it, or backing down.
1.2.2. A good production balances supply and demand
1.3. Production Downtime
1.3.1. Optimize your maintenance regularly
1.4. Production Costs
1.4.1. Monitor the costs implied in the production
1.5. Overall Operations Effectiveness (OOE)
1.5.1. Evaluate the efficiency of your operations
1.6. Overall Equipment Effectiveness (OEE)
1.7. Total Effective Equipment Performance (TEEP)
1.8. Capacity Utilization
1.9. Defect Density
1.10. Rate Of Return
1.11. On-Time Delivery
1.12. Right First Time
1.13. Asset Turnover
1.14. Unit Costs
1.15. Return On Assets
1.16. Maintenance Costs
1.17. Revenue Per Employee
2. 6 ESSENTIAL KPIs for WORLD CLASS MANUFACTURING
2.1. “Top Six” Essential Manufactuirng KPIs
2.1.1. 1. Overall Equipment Effectiveness (OEE)
2.1.1.1. OEE measures 3 elements of performances: ➔ Availability (actual running vs running time) ➔ Performance (actual speed vs standard speed) ➔ Quality (good production vs total production) OEE measures performance against an arbitrary benchmark or standard. What matters is not the absolute OEE value, but the ongoing measurement and continuous improvement from the starting point.
2.1.2. 2. Overall labour Effectiveness (OLE)
2.1.2.1. Part of labor effectiveness : ➢ Utilization (direct hours vs attendance hours) ➢ Performance (actual speed vs standard speed) ➢ Quality (per cent labor hours lost to rework or scrap)
2.1.3. 3. Scrap / Yield
2.1.3.1. ● Scrap and yield represent the percentage that is built into a bill’s structure to accurately forecast the production and finished goods and the quantities of components necessary to produce them. ● Scrap percentages are used for individual components. ● One yield percentages applied to a complete bill, but a variety of scrap percentages can be applied to components within the same bill. ● It is essentials to track scrap rates in order to keep track of material costs.
2.1.4. 4. Right First Time
2.1.4.1. - The concept of ensuring that any procedures are performed in the right manner the first time and every time. - Tracking where and why your product fails their test will allow you to examine the root causes of any issues. - You can then put in a place preventatives actions to reduce the time and cost of repeatedly reworking products.
2.1.5. 5. On time in full
2.1.6. 6. Non conformance /Complaints
2.1.6.1. ❏ Complaints are the ultimate measure of customer satisfaction. ❏ Formally track every complaint and track and monitor incident rates can improve quality to work towards 6 sigma levels of customer satisfaction.
3. World Class Manufacturing
3.1. Meaning & Scope
3.1.1. World Class Manufacturers are those that demonstrate industry best practice
3.2. Production/Services workflow
3.2.1. Procurement
3.2.1.1. Product Design
3.2.1.2. Process Design
3.2.2. Design
3.2.2.1. Manpower
3.2.2.1.1. Attendance
3.2.2.1.2. Training
3.2.2.1.3. Skill (MATRIX)
3.2.2.2. Machine
3.2.2.2.1. Monitoring
3.2.2.2.2. Maintenance
3.2.2.2.3. Upgrading
3.2.2.3. Material
3.2.2.3.1. Inventory
3.2.2.3.2. Cost
3.2.2.3.3. Delivery
3.2.2.4. Method
3.2.2.4.1. SOP
3.2.2.4.2. Regulation
3.2.2.4.3. Certificates
3.2.3. Production
3.2.3.1. Produce a quality, cost-effective and on time delivery products
3.3. Criteria
3.3.1. 1) How does the best company compare with its best competition?
3.3.2. 2) Has the company increase its score since last year?
3.4. Characteristic of world class manufacturing
3.4.1. 1. Customer service 2. Quality control and assurance 3. Research and development / new product development 4. Acquiring new technology 5. Innovation 6. Team based approach (adopting and using effectively 7. Best practice (study and use)
3.5. World Class Manufacturing: What It Takes?
3.5.1. - Competitive analysis strategies - Production and supply chain - Customization strategies - Electronic commerce strategies (supply - Compensation systems
3.6. Implementing wcm: Tools to measure and record progress SUCCESS
3.6.1. - Cost control - Quality - External flexibility - Internal Flexibility - Capacity to change - Innovation capacity
3.7. Contrasting mass production & wcm
3.7.1. - Logistic - Quality - Work Organisation
3.8. Types Of Operations Which Creates A Wcm Units
3.8.1. The Kanban Control Concept
3.9. Just in time (jit) manufacturing
3.9.1. Jit improvements to manufacturing
3.9.1.1. System Design Organization Attitudes and Structures External Relationships New Management Priorities
3.10. Conwip control
3.10.1. CONWIP stands for Constant Work In Process and designates a control strategy that limits the control number of parts allowed into the system at the same time
3.11. Factors which can make a wcm
3.11.1. - Equality - Cell Organization - Discipline - De-layering Management - Team Autonomy - Leads to ownership - Flexibility
4. MANUFACTURING KPI & METRIC
4.1. What is Manufacturing KPI?
4.1.1. - The manufacturing Key Performance Indicator is a measurable value that demonstrates the performance of the company. - Use KPI to monitor, analyze and optimize operation to compare their efficiencies with other companies with the same sector.
4.2. Why KPIs Important ?
4.2.1. - Company Health - Measure Progress - Analyze Pattern Over Time - Solve Problem Or Tackle Opportunities - Make Adjustment & Stay On Track
4.3. Fundamental of Manufacturing KPI
4.4. Keep Track KPI Data
4.4.1. Data protection and security are essential
4.4.2. Reduce the amount of duplicated data
4.4.3. Ensure KPI data easily accessible
4.5. Manufacturing Reporting Process
4.5.1. Interface with other services
4.5.2. Instant updates
4.5.3. Consolidating the data
4.5.4. Managing large data dumps