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Key Production KPIs

Key Production KPIs

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abhilash jaiswal
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18 views8 pages

Key Production KPIs

Key Production KPIs

Uploaded by

abhilash jaiswal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Key Production

KPIs
MEASURING AND IMPROVING PERFORMANCE

Muhammad Hussain Imran


Introduction
In this presentation, we will discuss the importance of Key Performance
Indicators (KPIs) in production management. We will focus on specific
KPIs that can help evaluate and improve performance within your
production department.

Muhammad Hussain Imran


Why KPIs Matter
KPIs are critical in production management for several reasons:
- Identify problems
- Track progress on a daily basis
- Aid in decision-making
- Set and achieve goals
- Compare performance over time

Muhammad Hussain Imran


Production KPI Categories
We will categorize the KPIs into two main types:
1. Output KPIs
2. Efficiency KPIs

Muhammad Hussain Imran


Output KPIs
- Output per Worker: Measures productivity by calculating the
number of products produced per worker per shift.
Example: If 100 pieces are produced in a shift using 5 workers, the
worker's output is 20 pieces per shift.
Formula: Output per Worker = Total Output / Number of Workers

- Cycle Time: The time taken for a single piece to go from the startof
production to completion. Lower cycle time indicates improvement.
Formula: Cycle Time = End Time - Start Time

Muhammad Hussain Imran


Output KPIs
- Scrap Rate: The percentage of waste produced during production.A
high scrap rate indicates quality issues.
Formula: Scrap Rate = (Scrap Quantity / Total Quantity Produced) x
100%

- Rework Rate: The percentage of defective products that can be


reworked. It indicates the efficiency of the production process.
Formula: Rework Rate = (Rework Quantity / Total Quantity Produced) x
100%

Muhammad Hussain Imran


Efficiency KPIs
- Machine Uptime: Measures the reliability of equipment by
calculating the percentage of time a machine is operational.
Formula: Uptime = (Total Operating Time / Total Time) x 100%

- Planned Production vs. Actual Production: Compares planned


output with actual output to determine line efficiency.
Formula: Line Efficiency = (Actual Output / Planned Output) x 100%

- Overtime Hours: Evaluates workload by tracking the number of


overtime hours worked.

Muhammad Hussain Imran


Conclusion
Using these KPIs will help you make informed decisions, improve
productivity, and align your production goals with overall business
objectives. Start implementing these KPIs in your department to track
performance and drive continuous improvement.

Muhammad Hussain Imran

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