Monday, March 24, 2014

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




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