Manufacturing Key Performance Indicators (KPI) are custom calculations that are meaningful to your organization, and signify a position of success. In other words, when you view the results of your calculations, you’re looking for results that tell you you have either failed or succeeded.
Example: Avg Work Order hours: 38
Failed: Above 40
Success: Below 35
In this example, you’re somewhere in between failure and success. You are averaging 38 hours to build the average work order. Anything above 40 hours (in this example) is unsustainable. Anything below 35 hours is great! But in all likeliness, you may have a few bad samples that are skewing the results. So, you’re probably good. But still, it’s time to dig in and find out what’s going on. Which projects are taking so much time? Which employees had a hard time completing the jobs? What circumstances led to the “above 35” results? Maybe it’s an anomaly, or maybe it’s real. You won’t know until you dig into the actual time logs to find out.
Microsoft® Excel® is a good tool to calculate manufacturing KPI’s. You can bring your time tracking data in from Standard Time® and compute the exact success/fail scenarios that are meaningful to you.
It turns out that you can also use scripting in Standard Time to compute KPI’s to be displayed on the Work In Progress screen. (That’s a big display that shows the status of every project on the shop floor.) You custom KPI computations will display next to each job on the big WIP screen. You’ll be able to look up on the big screen and see if you’re achieving success on each job.
The video below describes the basics of manufacturing key performance indicators. Watch it for inspiration and a starting point. The next step might be to download Standard Time, and get started. And then we’ll help you get where you want to be.
Talk to you after the video!