The 10 Most Important Manufacturing Metrics
7 July, 2017
The world of manufacturing is evolving at an ever-increasing pace. In order for your business to enjoy a competitive edge while still ensuring superior quality, specific metrics need to be observed on a regular basis. Considering that digital technology now plays more of a pivotal role than ever before, staying on top of these variables is critical. Let us now look at the top ten metrics and how these will apply to a typical production environment.
The Top Ten Metrics Within the Manufacturing Sector
1. Delivery to Commit
This is commonly defined as the percentage of the time that a specific product or service is delivered to the customer within a certain operational window. In other words, how often are you able to meet a deadline set by the client?
2. The Total Cycle Time
This refers to your in-house production methods. Your total cycle time is a measurement of how long it takes to produce a good or service between the time that the order was placed and when it is considered to be a finished product. This will obviously have a massive impact upon your ROI as well as customer satisfaction.
3. Changeover Time
Let us assume for a moment that your company produces an entire line of physical products. Changeover time is the time that it will take to modify your production line to manufacture a different product. This might not only refer to an assembly line, but it could also involve an entire plant.
4. The Total Yield
In this sense, yield does not simply involve the total amount of goods that are produced. Yield instead refers to the proportional number of products that are manufactured within a given period of time that meet your specifications without having to be modified or scrapped entirely. A higher yield equates to a quicker production time and less money wasted on corrective adjustments.
5. Customer Rejections and Rates of Return
This metric should be quite obvious. How many returns do you receive within a specific time frame (such as a financial quarter)? Whether as a result of an error in manufacturing or poor customer service, this variable will help you to determine which areas need to be improved and if a product is meeting the guidelines of the client.
This is another very common factor that affects the performance of assembly lines as well as an entire plant. Throughput is the aggregate number of products that you have manufactured within a predetermined period of time. Lower throughput is a good indicator that you need to address areas such as efficiency or quality control.
7. Production Equipment Efficiency
This is sometimes referred to as Overall Equipment Effectiveness (OEE). OEE is a product of the availability of a piece of equipment, its performance levels and the quality of the finished product. Such a metric can also be used to gauge an entire assembly line within a plant.
8. Health and Safety Metrics
These next measurements fall within the category of compliance. How many health and safety violations were reported within a given period of time? Keep in mind that these will not only include actual injuries, but they also involve near-miss situations or equipment failures that resulted in potentially hazardous conditions.
9. The Proportion of Downtime in Relation to Uptime
This is another metric that is intended to determine the overall efficiency of a firm. It only stands to reason that higher amounts of downtime will result in poor production levels and less revenue generation. This is also an indicator of asset availability (the raw materials that are available for production).
10. The Introduction of New Products
This metric will help to determine the flexibility of a company. How long will it take to implement the production of a new product within an existing assembly line? Not only could this include the re-tooling of machines, but it also takes into account marketing concerns as well as workforce adaptation.
These are ten important metrics which will have a direct impact upon your manufacturing efficiency. As you may have already guessed, each should be used in conjunction with the others in order to develop a well-rounded understanding of your present operations. This is also a great way to enact small changes as opposed to being forced to deal with major production problems.