Performance Management Shared Interest Group

Hello,

Can you please help identify the most important KPI for a manufacturing company and why?

Thanks,

Tala

The Most important KPI for manufcaturing company is

EE-Equipment Efficiency: How effectively manufacturing equipment being used

Formula

1. Availabilty x 2. performace x 3. quality

1. How much time equipment is available for running vs. downtime
2. How fast it produce/manufacture compare to its speed
3. How many good items are produced vs. defective

Why it is important:

Shows efficiency-bottlenecks and losses- production capacity

The Support KPI's are Inventory turnover, Scrap Rate/Defect rate & OTD(on time delivery)