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05/02/2019

Essential KPIs in Production

Correct evaluation of complicated facts

KPIs and evaluations are of enormous value in production. After all, managers, supervisors and operators have to make short-term decisions on a daily basis. However, what are the most important KPIs in production that can be recorded with a Manufacturing Execution System (MES)?

  1. Overall Equipment Effectiveness (OEE)
    The OEE represents the overall plant effectiveness and is a measure for the availability and effectiveness of the plants and machines in the company. This KPI helps to identify production losses, promotes the improvement of product quality and is important when comparing machines and production lines.
     
  2. Lead time
    The lead time shows how efficiently a company produces. It is the period of time that elapses between the start of the first operation and the completion of the last operation in the production of an article. Lead times include all production stages from processing and transport to waiting times.
     
  3. Employee productivity
    Employee productivity measures how productively each individual employee works within the company. The objective is to make employees aware of their performance and thus increase productivity.
     
  4. WIPs
    Experts refer to WIPs as material in process, material waiting in queues or in buffer stocks. The task of production planning is to keep WIPS to a minimum because they tie up capital and can cause high storage costs.

(approx. 2.000 characters)

KPIs and evaluations are of great importance for production managers because they serve as a basis for decision-making.
KPIs and evaluations are of great importance for production managers because they serve as a basis for decision-making. (Source: MPDV, AdobeStock, nd3000)
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