Manufacturing CIO

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Web-based Manufacturing KPIs to Improve Efficiency

One of the main reasons for implementing software which reports manufacturing KPIs is to reduce waste. Metrics which provide a view into the areas which need the most attention allow users to focus on these areas and ultimately improve efficiencies and reduce waste. Knowledge becomes powerful when it leads to change. The knowledge gained from real-time factory floor KPIs can result in significant improvements in manufacturing operations and ultimately improve the bottom line.

Highly configurable systems are outpacing canned systems and providing a path for innovation. Advancements in browser based technology are enabling agile deployment strategies.

Manufacturing software helps manufacturers improve production performance by providing visable control and reporting across the enterprise.

Using KPIs on the plant floor is a highly effective technique for exposing, quantifying and visualizing waste. They are also effective motivators. Effective KPIs quantify the waste and provide warning systems for processes which are falling out of spec. They also help motivate by providing challenging yet attainable goals for the plant floor. The real-time nature of web-based KPIs is also an important factor. When operators can see how they are performing on a real-time or near real-time basis, they can react to changes in the process while they can still have a positive effect. Waiting many hours or days later can mean lost opportunities to address issues. Real-time KPIs are actionable.

Another quality of effective production floor KPIs is that they can energize the plant floor. They can promote a competitive spirit and continuous improvement. Empowering plant personnel with actionable information gives them meaningful control over the process.

KPIs also help corporate personnel visualize and achieve strategic goals. While plant floor metrics help address the seven main types of losses, breakdowns, changeovers, slow cycles, small stops, startup rejects and production rejects, corporate level KPIs can help show management where they stand with the seven major forms of waste in manufacturing: overproduction, waiting time, unnecessary transport, over processing, inventory, unnecessary motion and defects.

Every plant’s ideal set of KPIs is going to be different. Employing a one-size-fits-all approach is virtually impossible. The ideal set of KPIs for any one company will be strongly aligned with their strategic objectives and be actionable by plant floor operators. There is one KPI that almost all manufacturing environments can use, however, which is OEE (overall equipment effectiveness).

OEE measures manufacturing performance as a percentage. It represents good pieces produced, the speed at which they were produced and the amount and nature of downtime. These three components account for all of the six big losses. This is almost always a useful and efficiency improving KPI.