Production KPIs matter now more than ever as businesses recover from the shocks brought about by the pandemic. When the global crisis slowed down production processes, companies were forced to make difficult strategic decisions.

Market shifts, movement restrictions, and material scarcities stemming from supply chain disruptions have affected several areas of the production process.

For instance, chemical manufacturers worldwide had to trim down capital and operational expenditure and shrink their operations to 40-60 percent capacity. This is due to insufficient manpower, dwindling demand, and inadequate raw material supplies, according to the data published in Manufacturing Tomorrow.

To meet contractual obligations and increase productivity, companies are encouraged to rethink their processes, explore new opportunities, and adapt to trends.

Digital connectivity is among the trends that will dominate industries as the 5G coverage worldwide continues to expand. Sustainability is also seen as a critical factor that will shape business operations and investments. The global market for green building materials is expected to grow from US$238 billion in the year 2020 to US$425.4 Billion by 2027.

Developing a new production strategy

However, the future of production is not just about the what and the why but also the how.

The potential of innovative technologies and business models can be further realized if their application is based on data-backed decisions. Such decisions help companies minimize risks, carry out relevant strategic plans, and see what works and what doesn’t.

With this, decision makers and managers should pay attention to their production KPIs, which aim to guarantee the quality of the production process, from efficiency to productivity as well as the quantity and quality of output.

The KPI Institute has released “The Top 25 Production KPIs – 2020 Extended Edition” to provide companies an international perspective on the most popular production KPIs. It is designed for organizations and professionals who want to measure the components that contribute to the successful implementation of a production strategy.

With over 100 pages, the report presents the most viewed KPIs based on the information gathered from smartKPIs.com, a database of over 20,000 documented KPIs.

You can download the “The Top 25 Production KPIs – 2020 Extended Edition” to access the profile of each KPI and learn its potential impact on your production strategy. You will also find exclusive in practice recommendations and best practices for KPI selection and documentation.

Here is an overview of the top 25 KPIs categorized into five areas:

Production Efficiency – ensures that the production locations are always running at full parameters.

• # Units per man-hour
• % Production capacity utilization
• # Ideal run rate
• # Production capacity
• # Unused production capacity
• # Work in progress
• # Production lead time
• % Downtime due to operator lack of training
• % Unplanned downtime in production

Production Timeline – indicates all the time-related aspects of the production process.

• % Production schedule attainment
• % Production schedule adherence
• % Production uptime
• # Unit production time

Inventory – describes the amount of products on stock either from returns or demand, excluding the safety stock.

• % Recovery yield rate of returned products
• # Working stock
• $ Work in progress
• % Production delays due to raw material shortage
• # Decoupling stock
• % Boomerang return rate
• # Frequency of production delays due to inventory shortages or supply delays

Maintenance – monitors the upkeep of the production plant and equipment.

• # Production plants
• % Machine utilization in production

Production Costs – refers to expenses implied by the production processes.

• $ Penalties cost due to unsatisfied demand
• $ Production costs per unit
• $ Direct material variance

Read more about each of the KPI in “The Top 25 Production KPIs – 2020 Extended Edition.”  You can also sign up for the live online course offered by The KPI Institute to learn how to implement a KPI Measurement Framework in your organization.

For inquiries, get in touch with Cristina Mihăiloaie, Business Unit Manager – Research Division: [email protected], +61 (390) 282 223 or +40 (749) 424 517.

Madinah Institute for Leadership and Entrepreneurship in partnership with The KPI Institute and smartkpis.com presents the webinar “10 Essential techniques in working with KPIs”- tools and techniques that can make a difference in getting KPIs right.

(more…)

The Certified KPI Professional Course in Kuala Lumpur was part of a series of certification courses dedicated to rigorous usage of KPIs in practice, organized in 2014 at global level in more than 30 cities from 5 continents, by The KPI Institute.

Facilitated by Aurel Brudan, CEO of The KPI Institute, this course was held at Hotel Istana in Kuala Lumpur, Malaysia between the 30^th of June and the 2^nd of July 2014.

(more…)

The Certified KPI Professional Course in Johannesburg was part of a series of certification courses dedicated to rigorous usage of KPIs in practice, organized in 2014 at global level in more than 30 cities from 5 continents, by The KPI Institute.

Facilitated by Raluca Vintilă, Business Research Analyst and Trainer of The KPI Institute, this course was held at Hyatt Regency in Johannesburg, South Africa, between the 8^th and the 10^th of July 2014.

(more…)

The Certified KPI Professional Course in Bucharest was part of a series of certification courses dedicated to rigorous usage of KPIs in practice, organized in 2014 at global level in more than 30 cities from 5 continents, by The KPI Institute.

Facilitated by Raluca Vintilă, Business Research Analyst and Trainer of The KPI Institute, this course was held at Hotel InterContinental in Bucharest, Romania, between 11^th and 13^th of June 2014.

(more…)

The Certified KPI Professional and Practitioner Courses in Jeddah were part of a series of certification courses dedicated to rigorous usage of KPIs in practice, organized in 2014 at global level in more than 30 cities from 5 continents, by The KPI Institute.

Facilitated by Adrian Brudan, Director of Research of The KPI Institute, the courses were held in Jeddah, Saudi Arabia, between the 25^th and the 29^th of May 2014.

(more…)

The Certified KPI Professional Course in Melbourne was part of a series of certification courses dedicated to rigorous usage of KPIs in practice, organized in 2014 at global level in more than 30 cities from 5 continents, by The KPI Institute.

Facilitated by Aurel Brudan, CEO of The KPI Institute, this course was held in Melbourne, Australia between the 21^st and the 23^rd of May 2014.

(more…)

The Certified KPI Professional Course in Singapore was part of a series of certification courses dedicated to rigorous usage of KPIs in practice, organized in 2014 at global level in more than 30 cities from 5 continents, by The KPI Institute.

Facilitated by Aurel Brudan, CEO of The KPI Institute, this course was held in Singapore between the 15^th and the 17^th of April 2014.

(more…)

The Certified KPI Professional Course in Istanbul was part of a series of certification courses dedicated to rigorous usage of KPIs in practice, organized in 2014 at global level in more than 30 cities from 5 continents, by The KPI Institute.

Facilitated by Adrian Brudan, Director of Research of The KPI Institute, the course was held in Istanbul, Turkey, between the 2^nd and the 4^th of April 2014.

(more…)

The Certified KPI Professional Course in Bucharest was part of a series of certification courses dedicated to rigorous usage of KPIs in practice, organized in 2014 at global level in more than 30 cities from 5 continents, by The KPI Institute.

Coordinated by Andreea Trîmbițaș, Business Research Analyst and Trainer of The KPI Institute, this courses was held in Bucharest, Romania, between the 2^nd and the 4^th of April 2014, at Hotel InterContinental.

(more…)