Here’s another product kpi dashboard — Someka’s Manufacturing KPI Dashboard. Manufacturing Cycle Efficiency measures “value-added time as a percentage of throughput time.”, Manufacturing Cycle Efficiency = Value-added time / Throughput time. 22. The difference is in our technology. According to Quantzig, leading oil and gas OEMs are looking to digital technology like IIoT to improve decision-making processes, and to tap new revenue streams to improve profitability. Manufacturing Cost As A Percentage Of Revenue = total manufacturing costs / overall revenue, Manufacturing Cost Per Unit is the breakdown of all the fixed and variable costs that are encountered in the process of producing a single product, Manufacturing Cost Per Unit =  manufacturing costs / total number of units produced during a given period. 17. On-time delivery is the percentage of time that a manufacturer delivers a completed product to the customer on schedule. 33. “[T]he result is cost avoidance—if and only if it is reasonably sure that the charge will arrive, absent the action.” Using machine breakdowns as an example, the avoided cost KPI could be calculated by subtracting preventative maintenance costs from an assumed repair cost plus productivity losses connected to the downtime. Revenue Per Employee = total revenue / current number of employees. Labor as a percentage of cost is a straightforward metric. It helps manufacturers ensure that their capacity matches the existing customer demand. Employee Turnover = (Total number of leavers in a month / average number of employees in a month ) * 100. Predictive Analytics in Manufacturing: Use Cases and... guide on the manufacturing analytics journey, 8 Wastes of Lean Manufacturing | MachineMetrics. Availability is the run time compared to planned production time. Together, the sum of these KPIs tells a story about the performance of the line, plant, and/or company. This can highlight a production scheduling issue. By factoring in variables such as downtime associated with changeover, breaks, off-quality part fallout, and others, OEE can determine how productive an operation truly is by measuring the effectiveness of the production equipment. A manufacturing company requires efficient use of inventory, equipment, and personnel to develop its products. On-time Delivery is the ratio of finished goods or shipments delivered on time to customers as a percentage of total units delivered or shipped. Manufacturing KPI’s examples in industry are paramount in the measurement of product quality, process quality, inventory control, measuring manufacturing time, overall production, preparation time, customer and employee satisfaction, and much more. 3. 27. Not all KPIs are created equal. Perhaps the biggest change today is how data is collected. Common KPI’s tracked monthly on the manufacturing dashboard embodies this idea and is a best practice. KPIs not only provide an organization with a focus for strategic and operational improvement, but a way to compare achievements to similar organizations. Labor usage is a metric that calculates how much of the time someone is working is spent working versus how much time is spent idle, or otherwise. Originally published on Modern Machine Shop. Capacity Utilization = (Actual output/Maximum possible output)*100. Includes KPI … This metric is the number of times the plant violated regulatory compliance rules during the year. Unscheduled Downtime is any period in which a system is unavailable that was not previously planned. Try it yourself with a 30-day free trial. 6. Work-in-Process (Wip) = WIP inventory at beginning of period + WIP purchased during period - WIP inventory at end of period + labor costs + manufacturing overhead. Direct Material Usage Variance = (standard quantity of material allowed for production – actual quantity used) × standard price per unit of material. Unused capacity expenditure = Fixed costs x (1 – Company output/Company maximum possible output). “is total maintenance cost divided by the number of produced units in the measurement period. Manufacturing Cost as a Percentage of Revenue = Total Manufacturing Cost / Total Revenue; Energy Cost Per Unit – This is a fairly nitty gritty manufacturing KPI that a lot of companies tend to overlook. This checklist of 5 basic KPI formulas, with examples for each one, will help you decide the best way to calculate your KPIs. Asset Turnover = Net Sales / Average Total Assets. 9. Plant Downtime, also known as idle time, off line period or production downtime, is any time in which a manufacturing plant is off-line and not producing any products or adding value to the business and its customers. This category only includes cookies that ensures basic functionalities and security features of the website. First pass yield (FPY) is the number of units without rework or scrap defects exiting a process divided by the number of units entering the same process over a set time period. is a straightforward metric. Below we provide a large variety of example KPI reports and dashboards from MachineMetrics. By factoring in, For decades manufacturers have used data as a way to gain a competitive edge. Rhythm Systems is a cloud-based KPI dashboard system that recommends using some of the following 25 manufacturing KPIs and production KPIs for the manufacturing industry. Mean Time To Repair is the basic measure of the maintainability of repairable items. Manufacturing Cycle Time is a related metric that measures the speed or time it takes to manufacture a given product. 4. was supported but went unused. Direct Material Usage Variance is the difference between the standard quantity of materials that should have been used for the number of units actually produced, and the actual quantity of materials used, valued at the standard cost per unit of material, Direct Material Usage Variance = (standard quantity of material allowed for production – actual quantity used) × standard price per unit of material. Calculate on-time delivery by dividing the number of units ordered by the number of orders delivered on-time. In today’s world of interconnected everything, too many manufacturers are finding themselves a day late and a dollar short when it comes to quality, on-time delivery, and inventory management. KPI Dashboard Excel templates are the graphical representations to track the key data points for maximizing the performance of the business. Avoided Cost = Sum of expenses avoided from foregoing a particular activity. Edge devices are pieces of equipment that serve to transmit data between the local network and the cloud. Mean time between failure (MTBF) “is the predicted elapsed time between inherent failures of a mechanical or electronic system, during normal system operation.”  Calculate this metric by taking the average time between the system’s failures. Revenue Per Employee, similar to profit per employee, is a ratio that measures how much revenue each employee generates for the firm. (standard quantity of material allowed for production – actual quantity used) × standard price per unit of material. Lean manufacturing focuses on eliminating sources of waste and continuously looking for ways to improve the organization. It is essentially the average time it takes to repair either failed equipment or a failed part. How to Calculate Manufacturing Cost As A Percentage Of Revenue, How to Calculate Manufacturing Cost Per Unit, How to Calculate Mean Time Between Failure, How to Calculate Non-compliance Events Per Year, How to Calculate Overall Equipment Effectiveness, Overall Operating Efficiency is similar to OEE, How to Calculate Overall Operating Efficiency (OOE), How to Calculate Percentage Maintenance Planned, How to Calculate Production-to-market Lead-time, Total Manufacturing Cost Per Unit Excluding Materials. Scrap Rate is the percentage of failed assemblies or material that cannot be repaired or restored, and is therefore condemned and discarded, which represents a cost to the organization. Together, the sum of these KPIs tells a story about the performance of the line, plant, and/or company. A good performance measure is defined as “objective evidence of the degree to which a performance result is occurring over time”. 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