KPIs - Measures of Performance

7/26/2019 KPIs - Measures of Performance

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2006 Prentice Hall, Inc.

Additional Chapter IIAdditional Chapter II

KPIsKPIs


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OutlineOutline

Key Performance IndexKey Performance Index

Manufacturing KPIsManufacturing KPIs

ProductivityProductivityQualityQuality

CostCost

DeliveryDelivery

afetyafety

MoraleMorale


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Outline ! ContinuedOutline ! Continued

"ses of KPIs"ses of KPIs

MO#APMO#AP


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$earning O%&ectives$earning O%&ectives

'hen you complete this chapter( you'hen you complete this chapter( youshould %e a%le to)should %e a%le to)

Identify or Define)Identify or Define)



Availa%le time forAvaila%le time forproductionproduction

Operation timeOperation time

Do*ntimeDo*ntime


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$earning O%&ectives$earning O%&ectives

'hen you complete this chapter( you'hen you complete this chapter( youshould %e a%le to)should %e a%le to)

Descri%e or +xplain)Descri%e or +xplain)

KPIs in ManufacturingKPIs in Manufacturing

Causes of Do*ntimeCauses of Do*ntime

"ses of KPIs"ses of KPIs


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Measura%le ,uantityMeasura%le ,uantity

Indicator that reflect the operationIndicator that reflect the operationresultsresults

Management toolManagement tool


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Indicators used to indicateIndicators used to indicatemanufacturing performancemanufacturing performance

- groups of KPIs- groups of KPIs


ProductivityProductivity

QualityQuality

CostCostDeliveryDelivery

afetyafety

MoraleMorale

ProductionProduction

performanceperformance

Quality performanceQuality performance

Cost performanceCost performanceDelivery performanceDelivery performance

afety andafety and

+nvironmental+nvironmental

+mployee colla%oration+mployee colla%oration


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upplie

r

upplie

r

Custo

mer.Co

nsumer

Custo

mer.Co

nsumer

Customer .Customer .

ConsumerConsumer

DevelopmentDevelopment

Products .Products .

ProcessesProcesses

DevelopmentDevelopment

PlanningPlanning

ProductionProductionourcingourcing DeliveryDelivery

ManufacturingManufacturing


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Productivity KPIsProductivity KPIs

#otal #ime#otal #ime

Availa%le #imeAvaila%le #ime

"sed #ime"sed #ime

+ffective #ime+ffective #ime

Production #imeProduction #ime

Operation #imeOperation #ime

/oliday/oliday

"nused"nused#ime#ime

PlannedPlanned

/alt #ime/alt #ime

0outine0outine

ProductionProduction

toppagetoppage

"nexpected"nexpected

toppagetoppage

1et2utili3ed time1et2utili3ed timePerformancePerformance

losseslosses Idle time, speed loss, defect

Breakdown, part short

Set up, stop sequence

Planned

maintenance

o plan


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#otal Materials#otal Materials

#otal Produced Product#otal Produced Product

Product that can %e soldProduct that can %e sold

4ood Product4ood Product

'aste'aste

DefectDefect

0e*or50e*or5

Priority ProductPriority Product 6y Product6y Product


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Man2/ours for productionMan2/ours for production

#otal Man2/ours#otal Man2/ours

#otal Assigned Man2/ours#otal Assigned Man2/ours

1et 'or5ing Man2/ours1et 'or5ing Man2/ours

7alued Man2/ours7alued Man2/ours

6rea5(

Meeting

Idle time(

Motion

Monitoring(Ad&ustment

+fficient Man2/ours+fficient Man2/ours"n%alanced line(

$ac5 of automation


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Actual Cycle #imeActual Cycle #ime88Actual Production peed

99

$a%or Productivity$a%or Productivity88Man2hour

Production 7olumeProduction 7olume

AM 0atio 8AM 0atio 81um%er of 6rea5do*n

1um%er of elf2:ixing1um%er of elf2:ixing


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;0e*or5 8;0e*or5 8

;Quality 0ate;Quality 0ate88Actual Output

Actual Output 2 DefectActual Output 2 Defectx 9


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;Availa%ility 0ate;Availa%ility 0ate88

;Performance 0ate;Performance 0ate88

Operation #ime

#heoretical Cycle #ime x Actual Output#heoretical Cycle #ime x Actual Outputx 9


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;O++;O++=Overall +,uipment +fficiency 8=Overall +,uipment +fficiency 8

9


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O++O++

! ;Availa%ility x ;Performance x ;Quality>9


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O++O++

;Performance 0ate;Performance 0ate88

Operation #ime

#heoretical Cycle #ime x Actual Output#heoretical Cycle #ime x Actual Outputx 9


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O++O++ ==!&!&??

' ($"%!%' ($"%!%

@


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O++O++! ;Availa%ility 8;Availa%ility 8==B< ! B9


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6rea5do*n #imes 86rea5do*n #imes 8

;6rea5do*n 8;6rea5do*n 8Operation #ime

6rea5do*n #ime6rea5do*n #ime x 9


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unun MonMon #ue#ue 'ed'ed #hu#hu :ri:ri atat

M>CM>CAA

M>CM>C66

M##0( M#6:M##0( M#6:!

M##0 8 Mean #ime #o 0epairM##0 8 Mean #ime #o 0epair"."/"."/

! M#6: 8 Mean #ime 6et*een :ailureM#6: 8 Mean #ime 6et*een :ailure

"."%! (# "."%! (#

#$00 %000 &000

'eekl( plan

2$00

o Plan

2000

Planned )aintenanceProduction

20 hrs *

+epair ime

%


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unun MonMon #ue#ue 'ed'ed #hu#hu :ri:ri atat

+xample+xample

20

&$ &0

60

#0

6#0

%.2$-%.&$

&.&0-&.$0

22.2$-2&.00 2#.$0-22.20

&.20-%.20

22.00-*.#0


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;Machine "tili3ation 8;Machine "tili3ation 8

;Machine Availa%ility 8;Machine Availa%ility 8#otal #ime

Availa%le #imeAvaila%le #ime x 9


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Quality KPIsQuality KPIs

Average 0e&ection Case %y CustomerAverage 0e&ection Case %y Customer

Average 0e&ection Case %y QAAverage 0e&ection Case %y QA

Capa%ility IndexCapa%ility Index88-D

"$ 2 $$"$ 2 $$

"$ 8 "pper pecification $imit"$ 8 "pper pecification $imit

$$ 8 $o*er pecification $imit$$ 8 $o*er pecification $imit

D 8 tandard DeviationD 8 tandard Deviation

"ncontrolla%le"ncontrolla%le Controlla%leControlla%le 4ood Control4ood Control

9E


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Quality KPIsQuality KPIs

1um%er of Quality Kai3en1um%er of Quality Kai3en

;0e&ection 8;0e&ection 8Actual Output#otal 0e&ection#otal 0e&ection x 9


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Cost KPIsCost KPIs

Conversion CostConversion Cost88

Cost of 'aste DisposalCost of 'aste Disposal

Cost used for conversionCost used for conversion

of 0a* material to Productof 0a* material to Product

G "sually sho*ed in unit costG "sually sho*ed in unit cost

9E9E Production direct( indirect and service costEProduction direct( indirect and service costE

FEFE Purchasing( Planning and upply support costPurchasing( Planning and upply support cost

Cost of Quality 8Cost of Quality 8 Cost of Poor QualityCost of Poor QualityH QA ConversionH QA Conversion


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Cost KPIsCost KPIs

InventoryInventoryof pare Part 8of pare Part 8

InventoryInventoryof Material 8of Material 8

Cost of pare PartCost of pare Part

InventoryInventory

G "sually sho*ed in ; of Produced ProductG "sually sho*ed in ; of Produced Product

Cost of 0a* MaterialCost of 0a* Materialand :inished 4oodsand :inished 4oodsInventoryInventory

InventoryInventoryof 'IP 8of 'IP 8 Cost of 'or52In2Cost of 'or52In2Process InventoryProcess Inventory


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Cost KPIsCost KPIs

Production Direct Cost 8Production Direct Cost 8Direct $a%or H Depreciation H Other DirectDirect $a%or H Depreciation H Other Direct

Product 7olumeProduct 7olume

Production Indirect Cost 8Production Indirect Cost 8Indirect H Other IndirectIndirect H Other Indirect

Product 7olumeProduct 7olume 0epair . Maintenance Cost0epair . Maintenance Cost


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Delivery KPIsDelivery KPIs

;Plan Attainment 8;Plan Attainment 8

;Output 0elia%ility 8;Output 0elia%ility 8Planned Output

Actual OutputActual Output x 9


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afety KPIsafety KPIs

;Accident :re,uency 0ate 8;Accident :re,uency 0ate 8

#otal 'or5ing #ime

$ost 'or5ing #ime H 0estricted 'or5ing #ime$ost 'or5ing #ime H 0estricted 'or5ing #ime

1um%er of afety uggestion1um%er of afety uggestion

1um%er of "nsafe Correction1um%er of "nsafe Correction

1um%er of Incident1um%er of Incident

1um%er of Accident1um%er of Accident


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Morale KPIsMorale KPIs

Kai3en 0ate 8Kai3en 0ate 8

;A%sent 8;A%sent 8#otal +mployee

A%sent +mployeeA%sent +mployeex 9


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@'29/@'29/

'hat !'hat ! data should %e collecteddata should %e collected

'here !'here ! location of machine>*or5ing placelocation of machine>*or5ing place

'ho !'ho !ta5e action to report KPIta5e action to report KPI

'hen !'hen ! timing and fre,uency of reporttiming and fre,uency of report

'hy !'hy ! meaning of KPImeaning of KPI

/o* !/o* !to collect datato collect data

"sing of KPIs"sing of KPIs


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MO#APMO#AP

"sing of KPIs"sing of KPIs

PolicyPolicy

MMissionission

##argetarget

trategytrategy

AActionction

PPlanlan

OO%&ective%&ective

#o produce the %est ,uality product in#o produce the %est ,uality product in#hailand *ith lo*est cost#hailand *ith lo*est cost

9E9E 0educe customer re&ection0educe customer re&ection

FEFE 0educe defect0educe defect

EE Increase productivityIncrease productivity

EE 0educe la%or cost0educe la%or cost

9E9E ;0e&ection 8

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KPIs - Measures of Performance