1/10
Production activity (or volume)
Description: Calculates the value of the production output in monetary value
Formula: Sum of the monetary value of all finished goods produced within a defined period (View Tweet)
2/10
Cycle Time
Description: Average amount of time to make one product, including process, inspection, move, and queue time
Formula: Process time + Inspection time + Move time + Queue time (View Tweet)
3/10
Takt time
Description: Rate at which you need to complete a product to meet customer demand
Formula: Production available time / Customer demand (View Tweet)
4/10
Inventory Turnover
Description: Amount of time that passes from the day an item is purchased by a company until it is sold
Formula: Cost of Goods Sold / Average Inventory (over a period of time) (View Tweet)
5/10
Return on Assets (ROA)
Description: Measures how effectively a company is using its resources (machine and inventory) to make a profit
Formula: Net Income / Average Total Assets (View Tweet)
6/10
First Pass Yield
Description: Measure of quality and performance and is at the heart of production efficiency and profitability
Formula: Number of good products finished / Number of production orders started (View Tweet)
7/10
Yield Factor
Description: Calculates the number of items to start to have a good finished product
Formula: Number of production orders started / Number of good products finished (View Tweet)
8/10
Overall Equipment Effectiveness (OEE)
Description: Compares the performance of a machine to its relative capacity
Formula: Good Count × Ideal Cycle Time / Planned Production Time (View Tweet)
9/10
On-time delivery
Description: Measures if an organization is meeting its goals in regard to promised delivery times
Formula: On-time units / Total units (View Tweet)
10/10
Avoided costs
Description: How much money have you saved by using preventive maintenance
Formula: Assumed Repair Cost + Production Losses – Preventative Maintenance Cost (View Tweet)
Which other KPIs should be considered?
Please share your thoughts!
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