Why are KPIs for manufacturing a priority in 2020?
Choosing the right KPIs for manufacturing companies will depend on what's most important (e.g., zero defects, 5-star customer ratings, etc.). Intelligent use of KPIs can direct business owners to areas of potential improvement in processes or resources. Key Performance Indicators (KPIs) is a type of performance measurement used to evaluate the success of an organization's activity and the present state of the business. We find that success is is accomplished by measuring goals reached or progress made with real-time data.
The goal for manufacturers is to gather data from the entire manufacturing process and use it to devise an intelligent plan for the future. KPIs for manufacturing companies allow managers to identify areas or employees that could be more productive. Also, KPIs allow employees to understand how they are evaluated and where there may be opportunities for advancement. KPIs are not predictive; they are only measurements of past actions. The valuable information they provide can help business owners evaluate and set policies and procedures for success.
To use KPIs successfully, it's important to ask the right questions.
All manufacturers can benefit from managing KPIs but depending on their unique processes, the data they want to measure may vary. So how do you prioritize what data to track and when?
Today's advanced technology helps manufacturers benefit from remotely connected sensors integrated with their smart devices. There's so much data available that it can be a challenge to choose and make use of just what you need. It's wise to choose KPIs to run your business. It's a game-changer to help manage your productivity.
KPIs can be either historical or predictive, quantitative or qualitative. Classifying Manufacturing KPIs helps you gain insight and visibility into your business. But the different classifications of KPI will tell you different things.
KPIs for manufacturing helps you focus on what matters.
Ask if you have an accurate picture of:
- Your goals
- Your utilization and capacity
- Your production schedule.
Now ask what information (KPIs) you would need to have to help you get an accurate picture.
5 manufacturing KPI questions to help you get started
If you are new to KPIs for manufacturers, Acumatica has published a whitepaper entitled Key Performance Indicators for Manufacturing, to help you get started. Learn how KPIs track data and how you can separate the useful data from the noise. Learn how to best leverage your ERP software solution to make it work for your business. In the white paper, you'll learn:
- What two main categories of KPIs can tell you about your business
- Which KPIs work best for manufacturers
- What is the ideal number of KPIs to monitor daily
- What is the best technology allowing you to monitor and manage your KPIs
- How you can make sure your KPIs are keeping pace with your changing business
Download Key Performance Indicators for manufacturers - click below
Why do manufacturers work with Clients First Business Solutions?
At Clients First Business Solutions, we understand the needs and concerns of manufacturers, and we recommend Acumatica's Manufacturing Cloud ERP. Acumatica works with a comprehensive set of tools for make-to-stock, make-to-order, engineer-to-order, project-centric, job shop, and repetitive manufacturing.
Clients First is an Acumatica Gold Certified Partner specializing in business software for over two decades. Acumatica's modern platform allows us to bring added value to our manufacturing clients.
We're excited to offer Acumatica's white paper designed to help you understand what you need to track and how to track it
If you'd like to learn more, contact our Acumatica experts at Clients First Business Solutions.
By Clients First Business Solutions, www.cfbs-us.com
Another version of this article was posted on May 17, 2019 5 Tips for Using KPIs in Manufacturing