Key Performance Indicators for a Manufacturing Company
When running a manufacturing company, constantly measuring and analyzing your manufacturing company’s processes can be very important. Having key performance indicators in place is a tool that you can use to make it easier. You can use it to track different areas of your manufacturing process to ensure that everything runs efficiently.
Creating the best products for our customers is really important. As business manager to ensure that you create the best product possible for your customers. Measuring the different processes that goes into creating it is a necessary step you have to take.
KPIs for a Manufacturing Company Examples:
Below you can see examples of key performance indicators that you can use to track certain metrics within your manufacturing company:
Production efficiency
This is a metric you can use to track the efficiency of your production process. Closely keeping an eye on the machines and labor on the production line is important. This data will help you see how well your production process is running and what you can do to make it more efficient.
Speed
Henry ford revolutionized the way how persons manufactured cars. At the beginning of the auto-mobile era which is a vital part of human history. It was hard to produce 1 car a day; the production process was really slow. Henry Ford changed all that by focusing on speed. He revolutionized the assembly line. He reduced the time it took to build a car from 12 hours to two hours and thirty minutes.
Tracking the speed of your manufacturing processes is really important. It helps you to spot inefficiencies within your processes. This information when evaluated will help you to come up with radical ways to make your processes faster. It will also bring in a new wave of productivity within your organization.
Equipment performances
Tracking the performance of your manufacturing equipment is another important metric you must check for. It will allow you to see how effective they are to the overall manufacturing process. This information will help you to decide whether to invest in new equipment or try to fix the existing ones.
Downtime
It’s normal that our production process will break down from time to time. At some company it breaks down frequently. Time means money and the breakdown in the production process can cost you a lot of money. If it’s not dealt with fast and efficiently. The important thing is to have the necessary team in place and a great downtime fixing strategy.
The team and fixing process should be fast and efficient. You should ensure that it gets faster each time. While in downtime, if you should calculate how many products could’ve been created if it was in uptime. Sometimes it could’ve been a lot and all that time just gone to waste. So getting it faster and efficient is a necessity.
Scrap expense
Keeping track of the value of bad products is another important metric. This information will help you to see how much the scrap products cost. Your main goal is to try and reduce the number of bad products being produced. It cost money to produce waste products and that’s a bad thing. So in sum fewer waste products mean more money saved.
When running a manufacturing company it’s always important to use key performance indicators in place. It will allow you to track the necessary information that will be valuable to make your manufacturing processes better. This information will ensure that our processes running smoothly to produce valuable products for our customers.