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
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