Top 9 Important KPIs Factory Owners must Track

2. Top 9 Important KPIs Factory Owners must Track on Production/Factory Floor • Addend Analytics is a Microsoft Gold Partner based in Mumbai, India, and a branch office in the U.S. Addend has successfully implemented 100+ Microsoft Power BI and Business Central projects for 100+ clients across sectors like Financial Services, Banking, Insurance, Retail, Sales, Manufacturing, Real estate, Logistics, and Healthcare in countries like the US, Europe, Switzerland, and Australia. Get a free consultation now by emailing us at kamal.sharma@addendanalytics.com or contact us • It is impossible to control something that cannot be quantified. Any manufacturer that wants to improve his manufacturing process and grow his business must gather and evaluate important data or metrics. Any firm can benefit from numeric or numerical parameters. By providing all of the information and insights a manufacturer needs to continuously enhance and optimise his business, the right metrics can help him uncover the sticking points or weak spots in his production floor.

3. Understanding the correlation between high-level goals, objectives, and the activities or procedures required to achieve them is critical. Production managers may encounter one of two challenges, depending on the systems and processes in place on the factory floor: either they are unaware of the KPIs they should track to enhance factory performance, or they are unable to collect enough data to effectively measure the KPIs they wish to track. • Here’s a list of key performance indicators (KPIs) that business leaders and other stakeholders can track to improve production/factory floor efficiency. Goods Count/Actual Production, Availability (%), Performance (%), Quality (%), Overall Equipment Effectiveness (OEE), Behind Plan (%), Manufacturing Cycle Time, Throughput, Downtime

4. 1. Goods Count/Actual Production: The manufacturing industry is reliant on the raw materials that corporations obtain from all around the world. However, there is a potential that there is some impurity in it, or that the end product does not meet the expectations that were set. The final product that is ready for sale, i.e., the amount of total product made minus the trashed product, is referred to as the good count/actual production count. This KPI assists supervisors in taking care of the product right from the start, at the raw material stage. As a result, the factory is able to reduce its production expenses. 2. Availability (%): The production manager must monitor the availability of the equipment and manage the production floor operations accordingly in order to achieve optimal production in the facility. The availability KPI provides real-time information about machine availability to floor supervisors and production floor managers. The ratio of operating time to projected production time is this KPI. 3. Performance (%): It is critical for a floor supervisor or floor manager to monitor the functioning of the machinery in order to have an accurate notion of the factory’s productivity. The supervisor can use the performance KPI to get the information he needs to optimise machine operation and increase the factory’s overall performance. It’s expressed as a percentage of actual output versus the planned production’s predicted outcome.

5. 4. Quality (%): Maintaining production quality is critical for long-term business performance and profit. Maintaining quality across the various manufacturing processes on the production floor leads to the best possible end product quality. Quality KPIs can assist manufacturers in comparing and monitoring the quality of processes on the manufacturing floor. It reflects the percentage of goods counted in relation to the total number of products produced. 5. Overall Equipment Effectiveness (OEE): When every machine, piece of equipment, and worker is performing at their best, a factory floor is considered to be efficient. The Overall Equipment Effectiveness (OEE) KPI informs the manufacturer about the factory’s overall performance. This is a straightforward yet crucial KPI for monitoring the performance of a production floor. OEE stands for Availability X Performance X Quality and can be used to determine the total efficiency of a piece of industrial equipment or a whole production line. 6. Behind Plan (%): Processes may be disrupted as a result of a technological issue or a mishap on the manufacturing floor. The production time may be hampered as a result of these interruptions. A floor supervisor can use the Behind Plan KPI to see how much behind schedule the floor is in completing its goals. It also tells the boss how much work he or she needs to put in to reach the desired result. It’s expressed as the percentage of actual production that falls short of expectations.

6. 7. Manufacturing Cycle Time: Time is money in every business. If a corporation can deliver a product on time, it will almost certainly make more money. Manufacturing Cycle Time KPI quantifies the amount of time it takes for a product to transit through all of the machines, processes, departments, and cycles before being labelled as a finished product. This enables a floor manager to improve and optimise operations to increase production output. 8. Throughput: It’s one of the most basic yet crucial manufacturing KPIs, allowing organisations to track the average number of units produced on a machine, production line, or by a plant during a given time period. 9. Downtime: It is, once again, one of the most critical KPIs to track on a manufacturing floor. Downtime, whether due to a breakdown or a simple equipment changeover, can have a significant impact on output. As a result, it is critical for floor supervisors to keep track of downtime in order to maintain the floor’s production. The floor manager can use the downtime KPI to improve production time and output by optimising operations.

7. We, at Addend Analytics, recognise the significance of key performance indicators on the manufacturing floor. Addend Analytics can create robust analytics solution with the importance of KPIs in mind. It provides real-time, continuous, and standardised production data analysis to supervisors, managers, and other stakeholders. Addend Analytics’ Power BI led Analytics enables factory owners to gain a better understanding of their production lines, allowing them to identify problem areas and make better decisions to fulfil the line’s dynamic demands.