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Production KPI

Production KPIs include key performance indicators as follows:


I/ Types of production KPIs
Document management KPI
Document management KPIs include key performance indicators of production
management as follows:
1. Average frequency (e.g. in days) of updates of documents. Indicates currency and use of
information.
2. Time to respond to legal discovery of records. Using test drills for risk mitigation.
3. Percentage of documents that have not been stored in the appropriate document management
systems.
4. Number of documents that have not been removed/deleted (from the system) after end-of-
life. Legal and security issues may determine the lenght of life of documents.
5. Percentage of documents that have not been accessed for more than for example 1 year.
6. Document storage costs (paper & electronic).
7. Ratio of paper to electronic documents.
8. % of documents in non-enterprise repositories: Percentage of documents in non-enterprise
repositories (eg CDs, thumb drives, PC hard disks, email accounts).
9. Percentage of enterprise documents accessible to the search engine.
10. Percentage searches within measurement period resulting in a document being opened.
11. Percentage of duplications/document variations within a repository or across repositories.
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Innovation KPI
Innovation/Improvement KPIs include key performance indicators of production
management as follows:
1. % of patents for sale
2. New product sales cannibalization ratio: Calculates the reduction in sales of existing
products due to new products.
3. Number of ideas developed within measurement period.
4. % of ideas from outside the organization
5. Number of collected ideas that were developed further
6. Number of collected ideas that were implemented
7. % of investment in non-core innovation projects
8. Total funds invested in non-core innovation projects
9. % of senior management time invested in growth innovation
10. Average application time for patents
11. Average age of patents
12. R&D productivity based on gross margin: R&D Productivity based on GM= (Revenue
COGS) / R&D overlays.
13. R&D spend as % of revenue: Research and development activities spend as percentage of
revenue.
14. % of sales due to launched product/services: Percentage of sales due to product/services
launched in previous period (e.g. the past year).
15. Average time-to-profitability for changes to existing products/services
16. Average time-to-profitability for new product/service
17. Time-to-market of changes to existing products/services: The time it takes from the time a
product is envisioned or defined until it is on store shelves.
18. Ratio of number of concepts to actual products
19. Time-to-market of new products/services:The time it takes from the time a product is
envisioned or defined until it is on store shelves.
20. Average prototyping speed i.e. time to create a first prototype.
21. Average number of prototypes per new product
22. % of ideas that are funded for development
23. % of ideas that are killed
24. Customer satisfaction with new products / services
25. % of new customers from new products / services
26. % of recjected patents
27. Research idea conversion rate: % of ideas submitted by Research that made it to a qualified
portfolio Business Case with revenue commitment
28. The turn around time from concept to application
29. Percentage of dedicated resources (in FTE) for radical innovation.
30. Average time (e.g. in days) from idea to first patent filing.
31. % of R&D projects involving universities / research institutes
32. % of R&D projects involving pre-competitive research with competing companies
33. % of R&D projects involving customers

Environment KPI
Environment KPIs include key performance indicators of production management
as follows:
1. Number of (severe) spills of liquid and accidental releases of substances. A severe spill is for
example a spill above one barrel.
2. Number of contained spills. Some spills are contained but still represent an incident that
should be recorded.
3. Total Emissions of HC, CO and NOx in kgs divided by the sum of max structural payload
capacity (in thousands of kgs) weighted by annual aircraft cycles.
4. Number of pollution incidents within measurement period.
5. Amount of petrol and diesel used by staff and van hire fleet.
6. % recycled printer paper
7. Water (in m3) used per amount (in e.g. tonne) of product manufactured.
8. Percentage of halogenated Volatile Organic Compounds (VOC) emissions.
9. Percentage of non-hazardous operational waste. Non-hazardous wastes are for example mixed
or household waste, packaging waste, compostable waste and inert waste.
10. % of hazardous operational waste
11. % of recycled hazardous operational waste
12. Percentage of recycled non-hazardous operational waste. Non-hazardous wastes are for
example mixed or household waste, packaging waste, compostable waste and inert waste.
13. Total energy use (in Gigajoule) in measurement period (e.g. monthly, quarterly, yearly).
14. Total purchaed energy (in Gigajoule) in measurement period (e.g. monthly, quarterly,
yearly).
15. Total on-site created energy (in Gigajoule) in measurement period (e.g. monthly, quarterly,
yearly). This is energy that is created for example in the manufacturing process and that can be
(re)-used.
16. Greenhouse gas (GHG) emissions (in kt) within measurement period.
17. Water use (in million m3) in measurement period (e.g. monthly, quarterly, yearly).
18. Non-contact cooling water use (in million m3) in measurement period (e.g. monthly,
quarterly, yearly).
19. Ratio of actual pollution discharge to target levels.
20. Percentage of construction and demolition waste recycled.
21. Percentage of household waste sent for recycling.
22. Amount of household waste collected per head.
23. Percentage of household waste sent for composting.
24. Percentage of total power that is green power.
25. For abstracted water, the majority of charges are levied according to the licensed volume, but
actual volumes abstracted are reported to the Environment Agency. It is the actual
26. Volumes abstracted that should be measured.
27. Percentage of usage of water from non-traditional sources such as desalination and recycled
water.
28. Size of identified contaminated land sites.
29. Percentage of natural light within buildings.
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Logistics KPI
Logistics KPIs include key performance indicators of production
management as follows:
1. Suppliers
No. of suppliers
2. Products
% of turnover product family 1
3. Service offer
Customer service rate of studied unit = N of order lines received on time in period / order lines
received during period number
4. Downstream transport
Total transport cost
Total transport cost as % of delivered sales
5. Reverse Logistics
Total value of goods returned by clients
6. Flows
% of total flow; flow 1
7. Cross-dock
Warehouse Part of flow which is through stock
Warehouse Part of flow which is cross-dock
8. Inventory
Stock level Warehouse
Stock days cover total
9. Logistics network
No. of Warehouses
Warehouse Outdoor surface
10.Warehouse Costs
Warehouse Turnover (at cost)
Personal
Personal (%)
11. Logistics costs in branches
Logistics personal
Rent (logistics surfaces) / stock value
12.General data
Turnover
Turnover at cost (without margin)
If you want to see more information about Logistic KPIs, please visit authors website: Free
logistics
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Warehouse KPI
Warehouse KPIs include key performance indicators of production management as
follows:
1. Cost value evolution vs. objective, budget (at cost)
2. Cost in % flow value evolution vs. objective, budget
3. Rent or annual amortization of the warehouse
4. Racks, sprinklers, automatized preparation, amortizations
5. Total cost rent + Equipment
6. Warehouse capacity use rate % = palets No stored in warehouse / warehouse capacity in palets
No.
7. Absenteeism Identify the amount of hours effectively worked by the warehouses operative
HR (exclude holidays, absenteeism, training) = total of non worked hours / total hours (%)
8. Reception HR (temporary & proper workers) + Equipment = Cost for 1 palet (homogeneous,
heterogeneous, container) received
9. Order picking HR (temporary & proper workers) + Equipment = Cost for 1 order line, 1 ton, 1
m3 prepared
10. Cross docking HR (temporary & proper workers) + Equipment = Cost for one palet, 1 ton, 1
m3 cross docked
11. Shipping HR (temporary & proper workers) + Equipment = Cost for one palet, 1 ton, 1 m3
shipped
12. Stock control HR (temporary & proper workers) + Equipment = Cost for one reference
controlled
13. Seasonality (monthly, weekly, daily) and trend = Follow Up of picking lines number,
trucks, m3 or tons shipped
14. No of lines, of heterogeneous/homogeneous palets received per man hour.
15. No of lines, palets put away per man hour.
16. No of lines picked per man hour.
17. No of lines, palets shipped per man hour.
18. Receiving flow / capacity
19. Preparing flow / capacity
20. Shipping flow / capacity
21. Warehousing discrepancies = Products lost value (at cost) / total products shipped value (at
cost)
22. Warehousing discrepancies = Products lost value (at cost) / total products stored value (at
cost)
23. Dispute (for suppliers and clients) = No of order lines delivered in dispute/ Total N of order
lines delivered
24. Dispute (for suppliers and clients) = Goods amount delivered in dispute/ Total goods amount
delivered
25. Service rate =No of order lines shipped on time / total N of order lines shipped
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Manufacturing KPI
Manufacturing KPIs examples / samples include contents as follows

1. Material management KPI
Material management are activities related to materials and accessories management of
manufacturing. It includes all input of manufacturing.
KPIs of material management include KPIs such as using norm of materials, using ratio of
material allowed etc.
Material management KPI
Material management KPIs include key performance indicators of
manufacturing as follows:
1. Using norm of materials
Using norm of materials is number of material and other accessory in a product.
Set the level to help you manage evaluate the product, saving NVL.
2. Using ratio of material allowed:
This is lost ratio of material per order
The rate is usually 3 5% custom types orders.
3. Number of material spent in using ratio of material allowed:
The rate help you identify average using norm of materials then make decision to appropriate
rate for the upcoming orders.
4. The rate of material defect by causes of material itself:
By total material defect due to the nature of that material, measured by the number and value of
money.
The rate help you evaluate the quality of suppliers.
5. The rate of damage material by error of workers:
By total material damage because of worker error, measured by the number and value of
money.
If you know the cause, you should consider how to manipulate, operated by workers.
6. The other error:
Because storage is not good
As grease machine ..
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2. Order management KPI
KPIs of order management include KPIs such as the value of the minimum order, average value
of the order, average sales turnover / customer, profit rate / each order etc.
Order management KPI
Order management KPIs include key performance indicators of manufacturing
management as follows:
1. The value of the minimum order:
The minimum value at which you signed a new order to ensure that the rate of profits set.
Check regularly rates this month, you know that the order quantities are below the minimum
required.
2. Average value of the order
By the total value / total order.
This rate show you what customer has the number of order greater or smaller amount of the
average order.
3. Average sales turnover / customer
Based on this rate, you will identify what customer account for highest turnover and you
need to concentrate efforts in these customers.
4. Profit rate / each order
Considering this rate, you know you have to use any type of costs, costs which have the ability
to improve, the responsibilities of the department.
5. The rate of profit on each customer:
The rate let you know what customer are creating more profits for you.
Target not sure if the profit is reduced by the fault of you.

3. Productivity KPI
KPIs of productivity include KPIs such as company productivity, order productivity by time,
productivity by individuals, productivity by department etc.
Productivity KPI
Productivity KPISs include key performance indicators of manufacturing
management as follows:
1. Company productivity
Formula: Total sales turnover / total employee.
You should compare this rate of your company to competitors in same business field.
2. Order productivity by time:
Formula: Order productivity by week or day.
3. Productivity by individuals:
Personal Productivity is the amount produced by each individual work in a unit time.
Through this criteria, you will know what workers do effectively.
Note: the number of products are product quality. Workers with high rates also may be high
defect products.
4. Productivity by department:
Productivity by departments are products made in a time unit.
Productivity of a department is a target to evaluate effectiveness of departments and department
managers.
5. Compare productivity:
Compare productivity help you know youre standing where to find a suitable solution for your
company.
You should compare the efficiency of any angle?
Among individuals with different
Between the departments together
Between companies with competitors in the industry and other companies in the world.

4. Quality KPI
Quality KPI includes compare rework to other departments, rework rate of entire company, the
amount lost due to rework, the rate of defect goods, the rate of defect goods of individual, the
rate of defect goods of department etc.
Quality KPI
Quality KPIs include key performance indicators of manufacturing management as
follows:
1. The percentage must do it again rework
The rework rate is number of defect products must be rework as requirements.
This rate reflects the loss of the company by the workers to do the products, processes.
2. The types of rework rate:
a> Rework rate of workers in a department.
This rate reflects skills of workers or the care level of workers.
There are workers with their productivity is very high but their rework rate also very high.
b> The rework rate of a department:
Using this rate let you level of reword and the management ability of managers / supervisors.
c> Compare rework to other departments.
You should not compare in terms of value that you just compare in terms of quantity.
d> Rework rate of entire company.
e> The amount lost due to rework.
Time loss due to remake the products including time of product made + preparation time + time
to rework standard time.
Lost value = time lost due to rework * productivity * price.
3. The rate of defect goods
The rate of defect goods are all products damaged by the department or individual that made.
a> The rate of defect goods of individual
The rate of damaged goods by individuals can be calculated by product or step in
manufacturing process.
You should have a policy of reward / punishment to encourage reduce this rate.

b> The rate of defect goods of department
With the total number of damaged / total number of products / order.
You can create policies such as the penalty / award in 3.b.




5. Maintenance KPI
KPIs of maintenance include KPIs such as time taken to answer maintenance calls, % of
preventive maintenance cost, Mean Time to Repair (MTTR), preventive maintenance hours etc.
Maintenance KPI
1. Time taken to answer maintenance calls
Time from call for maintenance to time of repairing.
You should maintain work log to summarize this rate.
2. % of preventive maintenance cost
Formula: % preventive maintenance cost / total maintenance costs
Preventive maintenance are activities for the purpose of maintaining equipment and facilities in
satisfactory operating condition by providing for systematic inspection, detection, and
correction of incipient failures either before they occur or before they develop into major
defects.
4. Mean Time to Repair (MTTR)
Mean Time to Repair is average time between the occurrence of an incident and its resolution.
4. Preventive maintenance hours
Formula: total hours of preventive maintenance per year.
5. Schedule Completion Effectiveness (%)
Formula: actual maintenance hours planned / maintenance hours planned to complete
scheduled tasks.
6. Critical Equipment availability
Number of critical equipment availability / total breakdowns
7. Number of breakdowns
Formula: Total breakdowns per year or per department.
8. MTBF
MTBF is Mean Time Between Failures.
It is total time of failures and it is almost costs to my company
9. % of maintenance rework
Maintenance action that is a repeat of a previous, ineffective effort relative to all maintenance
work.
10. Total maintenance cost per year.
Total maintenance cost = total preventive and corrective maintenance costs.
11. Maintenance cost per unit
Formula: Total maintenance cost / number of produced units.
This rate is used to compare to last period or competitors in same business field.
12. % of maintenance hours of operating time
Maintenance hours is the actual maintenance hours spent maintaining an item of equipment (or
plant).
Maintenance hours includes preventive and corrective maintenance hours.
13. % of corrective maintenance cost
Formula: % corrective maintenance cost / total maintenance costs.
Corrective maintenances are activities to carry out on a defect which has caused equipment to
be taken out of service.
14. Budget compliance
Formula: Total budget implemented / budget planned

II/ General production KPIs
1. Manufacturing cycle time
Measured from the Firm Planned Order until the final production is reported. It usually takes into
account the original planned production quantity verses the actual production quantity.
2. Defects per million opportunities (DPMO)
DPMO is a Six Sigma calculation used to indicate the amount of defects in a process per one
million opportunities.
Calculation: Total Number of Defects / Total Number of Opportunities for a Defect. Then
multiply the answer by 1 Million.
3. Average production costs of items
Average production costs of items produced within measurement period.
4. Mean-time between failure (MTBF)
The average time between equipment failures over a given period i.e. the average time a device
will function before failing. It is the reliability rating indicating the expected failure rate of
equipment.
5. Loss ratio of material per order
This is lost ratio of material per order. The rate is usually 3 5% custom types orders.
6. Rate of material defect by causes of material itself
By total material defect due to the nature of that material, measured by the number and value of
money.
7. Rate of damaged material by error of workers
By total material damage because of worker error, measured by the number and/or value of
money.
8. Scrap value %
Scrap value as a percentage of production value.