Manufacturing Key Performance Indicators

Each organization strives to meet their KPI sometimes on a yearly basis, others on a monthly or quarterly basis.  And most manufacturing organizations already measure their KPI to one extend or another.  Performance measurement software is becoming more popular as manufactures can take advantage of key performance indicators (KPIs) which are specifically designed for their processes and take into account both business metrics as well as production data.   This software gives manufactures the ability to visualize and analyze these KPI.

Users have the ability to make optimal decisions right at their fingertips because business, operational and production performance KPIs are combined together and can provide near real-time, actionable metrics and KPI.  Some software companies allow for email or text alerts to be sent to users when KPI reach or are close to any pre-defined alarm levels.

Some basic production performance KPIs include OEE (overall equipment effectiveness), scheduled production, quality tracking (more recently known as six sigma), on time orders and shipping, open orders, WIP, cycle time, inventory and forecasts to name a few.
One of the largest advantages of any KPI software includes the ability to give corporate entities to compare performance across multiple areas including products, plants and divisions.  Additionally KPI makes it possible for team members to see where their money makers are located as well as the non profit items.

Hello world!

Hi and welcome to my new blog. I’m hoping that the KPI Blog will be a nice resource for KPI systems and reporting platforms. KPI stands for Key Performance Indicators. I have Used KPI reporting in my life as it pertains to manufacturing systems and industrial reporting. I’ve built business intelligence applications and KPI systems for almost twenty years and I hope to do some research and bring myself up to date. The industry seems to change rapidly as do all technology fields I suppose.

Usually KPI systems focus on several crucial areas of a manufacturing enterprise. They tend to focus on Production Performance, Quality, Cost/Revenue and Safety. I think that the reason good KPI reporting is necessary is that it can help to keep these different concerns in harmony with one another. All to often manufacturing managers will focus too intently on one of these issues and loose sight of the others if not damage the others. As an example, a manager who is too focused on Production Performance will ultimately often damage quality and even safety and The KPI data if designed correctly will point this out and prevent it.

Another major value in KPI reporting is that it shows you which managers are good at creating harmony in the manufacturing environment. It shows you who needs training and who should be doing the training. I hope that my blog will be a valuable resource on KPI and business intelligence and I hope that you will be able to use it to bring some durable competitive advantage to your manufacturing operation. If you see something you like please let me know I’d love to hear from you.