Building a culture of manufacturing excellence in your organization requires constant attention to production performance, productivity, and manufacturing kpis. An efficient production line not only reduces operational costs, but it also leads to a higher quality product, and more profits for your organization.
So that begs the question — which manufacturing KPIs are the best indicators of production performance? In this article, we’ll look at 3 of the most important KPIs production managers need to track to assess their production process and drive results for the business.
1. Planned maintenance percentage (PMP)
Planned maintenance percentage is the ratio between your plant’s scheduled maintenance and total maintenance time. This metric is useful for helping manufacturers determine which resources are needed for preventative maintenance. As a general rule of thumb, you should aim for 85% PMP to have less than 15% maintenance time allocated towards emergency work orders. That’s because emergency fixes cost, on average, 3-9 times more than planned maintenance because of overtime, scrapped production, and rushed parts.
2. Mean-time-to-repair (MTTR)
Another metric you should consider is MTTR, or mean-time-to-repair. This metric looks at the average time needed to troubleshoot and repair manufacturing equipment. It helps you determine how quickly your company can respond to unplanned equipment breakdowns and repair them. The MTTR also takes into account the time it takes to:
- Notify technicians
- Diagnose the issue
- Fix the issue
- Allow the equipment to cool down
- Reassemble, align and calibrate the asset
- Set up, test, and start-up the asset for production
Reducing MTTR enables you to increase efficiency, find ways to limit unplanned downtime, and boost your bottom line. MTTR can also help organizations identify why maintenance staff may be taking longer than usual to resolve issues and make more informed decisions to fix the underlying causes.
3. OEE – Overall Equipment Effectiveness
We’ve covered OEE in the past, and it’s worth mentioning this metric again. For many professionals, OEE is considered the gold standard for measuring manufacturing productivity. It’s calculated by multiplying availability, performance, and quality and is represented by a percentage. An OEE score of 100% means that your manufacturing plant is only producing products at 100% quality, performance, and availability.
By measuring OEE regularly, your company will get useful insights on how to improve the manufacturing process systematically. The metric can also help identify losses, benchmark progress, and enhance the productivity of manufacturing equipment (i.e., eliminating waste).
Final thoughts on manufacturing KPIs
The manufacturing KPIs we covered in this article are by no means the only KPIs you should track. If you’re already tracking several manufacturing KPIs in your organization, consider adding these three metrics to get a more complete picture of your plant’s performance. If you’d like to improve your safety, we recommend you try our new training system. Book a demo today to get started.