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What are key performance indicators?An important component of measuring manufacturing production is known as key performance indicators. Key performance indicators (KPI) are used to measure the performance of different processes within a company, but are especially important in measuring the manufacturing process.Key performance indicators most often come in the form of scorecards and graphs. They look at performance over time, which is why it is typically displayed as a graph. Manufacturing companies that implement lean manufacturing or process improvement, often use Key performance indicators to measure their data. If you the manager of a manufacturing company it is important to understand what key performance indicators are and how to use them-
Key performance indicators are used in the manufacturing process, measure different functions. These can include but are not limited to:
It is important to understand that manufacturing systems will not work properly if you do not have key performance indicators, along the way to measure them. In fact, there are many lean manufacturing experts that claim that any manufacturing system will only work as good as the key performance indicators that are designed, with it.It is important to understand that key performance indicators, allow for continuous improvement, to be made along the way. Here are some factors that should part of the criteria your key performance indicators should meet:
Key performance indicators can help a business gain the information they need, in other areas far beyond the manufacturing process. Key performance indicators can also be used to determine why customers are buying more of your products, at certain times, and in certain regions. They can also help businesses, solve problems with customer concerns. For example, if you have had 12 days of strong sales, and then you have a slow day; key performance indicators, will help you track the buying trends to determine why people are buying, and why they aren't buying at other times. This makes key performance indicators useful for business projections, analysis, planning, and problem solving. You can use key performance indicators in virtually any department of a business.You simply take a look at that department, and the data you want to organize. While there are other methods of solving problems, and identifying customer issues, key performance indicators always return fast and measurable results. The major benefit of using key performance indicators is that they provide you with visual tools, to help your business eliminate wastes, and increase productivity. |
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