Ecommerce Ebook EN V2 (2) - Flipbook - Page 27
4- K EY PERFORMANCE INDICATORS FOR MANUFACTURING
Key performance indicators for manufacturing are, predictably, related to your supply chain and production processes. These may tell
you where efficiencies and inefficiencies are, as well as help you understand productivity and expenses.
Key performance indicators for manufacturing in ecommerce include:
• Cycle time: The manufacturing cycle time tells you how long it
takes to manufacture a single product from start to finish. It’s all
about production efficiency.
• Overall equipment effectiveness (OEE): Provides insight into
how well your manufacturing equipment is performing.
• Overall labor effectiveness (OLE): Tells you how productive
your staff is in operating the machines.
• Yield: The number of products you have manufactured. Consider
periodically analyzing the yield variance to determine how much
you deviate from your average, and why. Consistency matters.
• First time yield (FTY) and first time through (FTT): FTY is a
quality-based KPI. It tells you how wasteful your production
processes are. To calculate FTY, divide the number of
successfully manufactured units by the total number of units
that started the process.
• Number of non-compliance events or incidents: In
manufacturing, there are several sets of regulations, licenses,
and policies businesses must comply with. These are typically
related to safety, working conditions, and quality. You’ll want
to reduce this number to ensure you’re operating within the
mandated guidelines.
KEY PERFORMANCE INDICATORS
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