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Production Efficiency Indicator

DSR has developed a model of standard performance indicators for a manufacturing company. Production Efficiency Indicators (WEP) consist of 50 indicators, the analysis of which allows to assess the effectiveness of the production company. It also allows to identify areas for improvement, define the sequence of improvement actions and monitor the effects and durability of implemented actions.

A set of key indicators is addressed to all manufacturing companies. Its application allows for constant monitoring of process effectiveness, identification of areas for improvement and determining the sequence of improvement actions. An additional benefit, not yet popular in Poland, is the possibility to compare the value of indicators with other companies. The indicators form groups corresponding to all key areas of management of a manufacturing company, i.e. such issues as OHS, Environment, Quality, Production, Maintenance, Logistics, Continuous Improvement, Human Resources, Sales and Cost Management. Each of the groups contains from 1 to 12 indicators, which have been commented upon and indicated in which IT systems data should be collected to calculate them. Examples of indicators of selected groups:

● In the “Quality” group: customer satisfaction index, PPM (parts per million), number of external complaints, number of stops in the customer’s production line. Sources of acquisition: CRM, ERP, SFC.
● In the “Production” group, the indicator of work speed, employee effectiveness, percentage of capable processes, or the number of internal and external complaints. Sources of acquisition: SFC.
● In the “Maintenance” group, the OEE indicator of critical machines, % of downtime due to failure, average MTTR repair time. Sources of acquisition: SFC.

Model developers also provided information on how to calculate the indicator, the source of the data, their aggregation, the frequency of analysis and best practice guidelines. This approach gives the user a ready-made guide with which to analyse each of the indicators. In addition, the user can determine whether there are undesirable phenomena in the production process that need to be improved.

Collecting data and analysing it on an ongoing basis translates into more effective production decisions. In order to obtain a transparent and coherent analytical environment, Business Intelligence tools integrated with ERP, APS, MES, Shop Floor Control and other applications gathering information about the company should be used.

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DSR team has implemented several hundred projects of IT systems implementation in Polish and international manufacturing companies.