Manufacturing analytics encompass large technology applications to improve productivity and reduce cost. The performance indicators provide insights to the behavior of various elements of manufacturing. Whether it is the total production qty or the total expenses , these indicators are to be watched closely to ascertain the agility of the manufacturing processes and its people.
- Productivity – The output per person per machine or per unit of raw material is a key indicator of the manufacturing set up
- Quality – Every product that comes out of the production line should be defect free thereby avoiding any customer rejects
- Cost – The manufacturing expenses is a vital indicator on the competitiveness of the business .
- Delivery – On time delivery with minimal inventory is a key trait of good manufacturing practices
- Morale – People – well trained and high in morale is a vital pillar in the manufacturing system – Every business should keep a close watch
Manufacturing Performance Indicators
Quantity Produced
Mfg Expenses
Mfg Cost Per Unit
Yield
Warranty Complaints
Final Inspection Defects
WIP Inventory Days
Breakdown Hours
No of Workmen
Output Per Person
Quantity Produced
This metric – the total production in numbers – is the most important in every manufacturing setup. It reflects the utilization of the team and resources for the said period.
Manufacturing Expenses
Expenses in manufacturing are mostly fixed and hence good tracking should be done to control it effectively. This Performance Indicator will give the total expenses in manufacturing during the said period.
Manufacturing Cost per Unit
This is a measure of all potentially controllable manufacturing costs that go into the production of a given manufactured unit, item or volume.
Yield
Indicates a percentage of products that are manufactured correctly and to specifications the first time through the manufacturing process without scrap or rework.
Warranty Complaints
A measure of how many times customers reject products or request returns of products based on receipt of a bad or out of specification product during warranty period. This is a cost outflow from the bottom line and reflects the product quality.
Final Inspection Defects
This Performance Indicator shows how is the quality of product in the final inspection. This will have a direct correlation on how the product will perform in the field.
WIP Inventory Days
A commonly used ratio calculation to measure the efficient use of inventory materials. It is calculated by dividing the cost of goods sold by the average inventory used to produce those goods
Breakdown Hours
This measures the total time in hours the plant has not worked due to machinery breakdown. This will reflect the upkeep of the plant and machinery and improve productivity.
No of Workmen
Manpower is the biggest asset for many business. This indicated the total workmen involved in the line of production. Adequate & Trained not excess manpower is a trait of agile business.
Output per Person
This is a measure of how much production output is achieved by a plant divided by the number of workmen. A key Performance Indicator to track especially when there are changes in the product, quantity or otherwise.
