Reassessing Your Manufacturing KPIs for Maximum Impact

Reassessing Your Manufacturing KPIs for Maximum Impact

Every manufacturing operation has key performance indicators (KPIs). For some, the KPIs may be updated daily on a whiteboard, for others they may be updated hourly in an ERP. Regardless of how you store or update your KPIs, it is a good practice to revisit your metrics annually to make sure they are providing you with the insight you need to manage your operation.

A thorough review of your KPIs and the data behind them should be part of a strategic planning process, but if you are like many managers simply trying to herd cats, the following ideas can be used to help provide a basic review:

  1. Are you tracking KPIs related to your pain points? A review of metrics that can give you more control over critical aspects of your operation is a good place to start. Are you always putting out fires related to quality? Besides tracking rejects or returns, maybe tracking the quality of supplier materials and parts would be a good KPI to add. If efficiency is your primary challenge, check to make sure you are monitoring metrics like throughput, capacity utilization, overall equipment effectiveness and schedule attainment.
  1. Do you trust your KPIs? It’s a question we all struggle to answer “yes” with confidence on every KPI, so don’t be afraid to take a dive into your data to build trust. A review of data entry practices is a great place to start this exercise. Who is entering the data for each stage of a job? When is the data being entered? How is the data being updated and reported to you? These are just a few questions to help determine if your data is being treated with the same care as the items being produced.
  1. Are you getting the right KPIs at the right time? Timing is everything with KPIs. If you are finding yourself scrambling to respond to production issues that could be prevented with more timely reports, it is time to develop faster “refresh rates” for your KPIs. It may seem like real time reporting is out of reach for your organization, but Triple Helix has helped manufacturers small and large to bring the right data to the right people in real time. With that in mind, don’t let “reality” keep you from identifying the KPIs that would make a big impact on your operational effectiveness if they were available in real time or near real time.

Need help assessing your KPIs or your capabilities for keeping them up to date and delivered to the right people at the right time? Triple Helix has a proven track record of helping manufacturers and other companies organize and improve access and use of their critical data. Contact us for a no-obligation consultation to see how we could help you.

About The Author: Jason Bittner

CEO and founder of Triple Helix Corporation, since 2004. Has worked closely within the Aerospace / Defense / Manufacturing industries for over two (2) decades, solving technical challenges with integrating data and information technologies with best business practices. Jason seeks to educate and inform his readers with the latest news about the information management space, along with insights into how best to operate our companies now and into the future.
February 20th, 2019

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