KPIs For Operations Manager

Key Performance Indicators for Operations Manager

Operations managers are responsible for managing the different areas of the company that handles the production and distribution of goods and services. They are the ones who track the necessary information to make sure that the manufacturing and warehousing areas of a company is in order.

When it comes to operations management having a key performance indicator structure in place is very important. This allows you to track the necessary information that can have a huge impact on your organization especially in the retail industry and industrial manufacturing companies. Just imagine a retail company that doesn’t track their information properly it can lead to disasters such as the over delivery of a certain product which leads to extra cost that could’ve easily been spent elsewhere.

 

KPIs for operations manager

 

As an operations manager you need to also know your customer needs, ensure that the product that’s being produced is of the highest quality at all times and at a fair price. In this article you are going get different types of key performance indicators that an operations manager can use to keep track of the different operations in their organization so that it can run as smoothly as possible.

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Product

As an operations manager you must always track the quality of each and every product to ensure that it’s of the best quality because we all know how one unsatisfied customer can mess up a business these days through the realm of social media. We should also keep track of the purchases and ensure that it’s sold at a fair price as well where customers can feel comfortable buying it.

Warehousing

Have a system in place to keep track of the goods in the warehouse is also another important metric operations manager need to check for. Knowing how much goods are in stock and predict how long they are going to last for is really important. When an operations manager tracks what’s in the warehouse, it prevents you from over and under produce on a certain product.

 

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Customer complaints

Measuring customer complaints is also a very important metric we must check for, as operation managers we work closely with the product and ensure that they are of the highest quality and so having information on who we are selling it to is really important. Tracking customer complaints enables us to know how many customers are complaining at a given time and if we are regularly getting a lot we need to really check if it’s something on the product and make the necessary changes to keep our customers loyal and satisfied.

Production system

Tracking the health of our production system is also another important metric we must always check. It allows us to see how productive our production system is and how we can improve efficiency. When analyzing the production system you must ensure that the machines are running efficiently and the employees in the production line are getting the job done.

Overall equipment effectiveness

Measuring for the overall equipment effectiveness is a great metric operations manager can use to see how efficient their manufacturing process are running and how they can make it more efficient to create more quality products. When we are manufacturing a product sometimes if the process can be improved it can yield great results; we produce more products and make the process less expensive which leads to a cheaper product being to customers. In this key performance indicator we of to check for characteristics such as the cycle time, quality rate and overall how well the different operations is working.

Employee’s performance

As operations manager we must always ensure that our employees are operating properly. This is also another important key performance indicator we must always seek to measure for. You can use a human resource software which can help you to create different metrics to help track employee’s performance and make sure that they are working towards achieving a set goal.

As an operations manager efficiency is everything, we must always be on top all the necessary information to ensure that everything is working properly. Using key performance indicators is a very important tool operations manager should utilize to make their life way easier and hopefully you can find at least one on this list that you could use to measure efficiency in your business.

Operations KPIs reporting with Excel