Manufacturing Metrics - Manufacturing Performance Measures

Suggested Metrics by LNS Research
9 October 2013


Improving Customer Experience & Responsiveness

1. On-Time Delivery to Commit

2. Manufacturing Cycle Time

3. Time to Make Changeovers

Improving Quality

4. Yield – Indicates a percentage of products that are manufactured correctly and to specifications the first time through the manufacturing process without scrap or rework.

5. Customer Rejects/Return Material Authorizations/Returns

6. Supplier’s Quality Incoming

Improving Efficiency

7. Throughput

8. Capacity Utilization

9. Overall Equipment Effectiveness (OEE)

10. Schedule or Production Attainment

Reducing Inventory

11. WIP Inventory/Turns

Ensuring Compliance

12. Reportable Health and Safety Incidents

13. Reportable Environmental Incidents

14. Number of Non-Compliance Events / Year

Reducing Maintenance

15. Percentage Planned vs. Emergency Maintenance Work Orders

16. Downtime in Proportion to Operating Time

Increasing Flexibility & Innovation

17. Rate of New Product Introduction

18. Engineering Change Order Cycle Time

Reducing Costs & Increasing Profitability

19. Total Manufacturing Cost per Unit Excluding Materials

20. Manufacturing Cost as a Percentage of Revenue

21. Net Operating Profit

22. Productivity in Revenue per Employee

23. Average Unit Contribution Margin

24. Return on Assets/Return on Net Assets

25. Energy Cost per Unit

26. Cash-to-Cash Cycle Time

27. EBITDA – Earnings Before Interest, Taxes, Depreciation, and Amortization.

28. Customer Fill Rate/On-Time delivery/Perfect Order Percentage

For Explanation of each of the metrics, Visit

http://blog.lnsresearch.com/blog/bid/188295/28-Manufacturing-Metrics-that-Actually-Matter-The-Ones-We-Rely-On

http://www.qualitydigest.com/inside/quality-insider-article/28-manufacturing-metrics-actually-matter.html

Lean Manufacturing - Thinking - Management - Enterprise Training in India

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BECOMING LEAN ENTERPRISE: THEORY AND CASE STUDIES - Management Development Programme at NITIE, Mumbai, India

About the Programme

In lean enterprises new product and process innovations are accompanied by product and process efficiency innovations. Lean enterprises are committed to the economic principle that states market decides price of a new product or existing product. Profit is earned by cost reductions due to efficiency improvement. Lean enterprise model was demonstrated to the world by Toyota which excelled in both technology innovation and technology efficiency engineering. The excellence was visible in all functional areas. Toyota system was explained to others by Taiichi Ohno, a production manager and Shigeo Shingo, an industrial engineer. It was explained to the western audience by MIT research team. Today many companies of the world have embraced lean enterprise principles.  It is confrontational global competition now and firms who do not make efforts to implement world class management practices will find it difficult to sustain their market shares. The programme provides an understanding of the theory of lean enterprise supported by various case studies from the literature.

Objectives of the Programme:

The participants will:

• appreciate the importance of lean enterprise concept
• get conversant with principles of lean enterprise
• become aware of implementation in various companies through case studies.

Coverage:

• Toyota lean enterprise system (Descriptions by Taiichi Ohno, Yasuhuri Monden, and Jim Womack and Dan Jones
• Lean system design - Principles and Action Plan Proposed by Shigeo Shingo (Celebrated Japanese Industrial Engineer) and  Jim Womack and Dan Jones (Lean Thinking Specialists) 
• Toyota style industrial engineering (Taiichi Ohno and Shigeo Shingo)
• Total productivity management (Japan Management Association)
• Lean manufacturing
• Lean product design
• Lean supply chain design
• Lean marketing and retailing
• Total industrial engineering ( Prof. Yamashina - World Class Manufacturing Consultant)

Programme For:

Operating executives in manufacturing, product design, supply chain, marketing and industrial engineering departments/functions.


Venue: NITIE
Duration: 5 days
Starts on 19.May 2014
Ends on  23 May 2014
Faculty: Dr. K.V.S.S. Narayana Rao, Professor, NITIE
http://www.nitie.edu/MDP%20Calendar%20Final_2014-15.pdf

The programme can be offered as a company based programme or unit based programme in the premises of a company with 25 persons as participants in the batch. If you are interested, please send an email to kvssnrao55  at the rate  gmail.com.

More information about Prof K.V.S.S. Narayana Rao

http://nraomtr.blogspot.in/2014/02/becoming-lean-enterprise-theory-and.html

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