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10 production KPIs to drive continuous improvement in the factory

Do you want to achieve improvements in production, be efficient and achieve the highest performance and quality in your factory?

To achieve continuous improvement, it is essential to measure. But what do we measure? In this article we highlight which quantitative values ​​are the most important to measure, compare and monitor, from a MES system, with the aim of achieving improvements and results in our production.

What is a KPI in production?

But first, we are going to clarify what the KPI is in production, in order to better define our strategy.

Within our system, we have different values ​​grouped into metrics. But we have to define from our strategy, what objectives we want to achieve and thus, we will be able to define what KPIs are essential, which will be our key performance indicators.

Examples of production KPIs:

Below, we highlight 10 examples of production KPIs. A production KPI should be:

  • Strategic, whose purpose is to achieve an objective
  • Measurable, must be quantitative
  • Achievable, a real goal

* However, we consider that 10 KPIs is a feasible number to develop an achievable plan. So, quality is better than quantity, and we advise you to adjust KPIs that are achievable, measurable and aligned with your strategy, that you focus on them so that you can later focus on the objective and achieve it.

The 10 production KPIs for continuous improvement in the industry according to Geprom

1 – OEE (Overall Equipment Effectiveness) Availability, performance and quality.

It is the key indicator to measure the efficiency of a machine. Since it allows us to know the productivity and efficiency of the production processes of the plant. In the same way, it allows to know those aspects that are not favouring productivity. Among these are identified stoppages, breakdowns, quality problems, etc.

-> How to calculate the OEE?

-> Success Case

Other indicators can be controlled, such as the OOE (Overall Operation Effectiveness) or the TEEP (Total Effective Equipment Performance)

  • TEEP takes into account a fourth factor, utilization.With this indicator we seek to know the effectiveness and efficiency of the team. A high value is indicative of optimal use and performance of the equipment. Utilization = (Operating time / Available time) x 100

TEEP = Availability x Performance x Quality x Utilization

  • OOE – Global Effectiveness of Operations. The time metric of each operational shift is added, it measures all operational management.

OEE= Performance x Availability x Quality

*Availability = actual production time/uptime.

2 - MTBF (Main Time Between Failure) Reliability

Adequate operating time that elapses between two failures. With this KPI you can understand the reliability of a piece of equipment, in addition to its failure rate. This indicator will help us to understand the reliability of a piece of equipment, in addition to knowing the failure rate, or failure rate.

MTBF = Total Time Available (TTD) – Total Time Lost (TTP)/Number of Stops.

The TTD is considered to be the time that the equipment is not operational. This can be 24 hours or the period of time that the equipment is running.

Other reliability indicators:

MTTF (average operating time of a piece of equipment before the first failure),

MUT (average operating time after repair).

MDT Mean Down Time

MTBF (Main Time Between Failure) Fiabilidad

3 - MTTR – (Mean Time To Repair)

It is the time that elapses, on average, between a fault and its repair. It contemplates the time that a team takes to diagnose the fault and restart the team.

MTTR= Total maintenance time/Number of repairs.

This indicator allows us to know the effectiveness of interventions, evaluate work orders, ability to maintain equipment and different equipment criteria such as: technical documentation, accessibility, safety, manufacturer, types of maintenance performed.

A MES System can help you monitor all the strategic KPIs for your company. If you want to see a demo or know how it works, you can contact us directly.

4 - Downtime – Equipment Inactivity Time – Stoppage rate

It is unscheduled downtime. An unexpected. Which is an indicator to project a preventive maintenance strategy with the aim of reducing the number of unscheduled stops.

5 - PMP (Planned Maintenance Percentage)

It is the degree of efficiency and success in the management in a company of the Preventive Maintenance plan.

Two ways to calculate this indicator:

  • Total hours dedicated to preventive maintenance / total number of maintenance hours
  • Total hours dedicated to corrective maintenance / total number of maintenance hours. *Multiply the result by 100 to find the percentage. The average is 85% or higher.

6 - Backlog

It tells us the time needed to carry out a Corrective, Preventive or Predictive Maintenance intervention; Quality Inspections; improvements etc It offers us the visibility to know the productivity of the team.

Total man-hours in planned, pending, scheduled, and executed tasks/divided by total man-hours available.

7 - Production cost per unit (CPU)

It is a key indicator to position ourselves in the market and thus define a strategy, as well as offering visibility into the performance of the manufacturing system and being able to optimize the cost of production.

Although each company uses a methodology to establish general expenses, the formula to calculate the unit production cost will be:

Direct material costs + Direct labor costs + Manufacturing overhead) / Units produced = CPU

-> Learn more about production management

8 - Work in Progress (WIP)

Knowing which raw materials are being used in the manufacturing process is valuable information, since it offers us visibility to save on costs, space and production time.

WIP = Manufacturing lead time x Production flow value

We can also focus on finding out what materials have been discarded (scrap rate) in the manufacturing process, with the aim of being more efficient and sustainable.

9 - First Time Quality (FTQ)

Know the number of correctly completed parts of the total produced.

10 - Delivery time

Essential KPI in manufacturing and selling products. With it we will know the time it takes to deliver an order since it has been made.

– OTIF (On Time In Full) u OTIF

With this indicator we measure the number of orders that have been delivered with the right quality and quantity and on time to the customer. To get a ratio, it is compared to the total number of orders.

OTIF = Number of perfect orders / Total number of orders

A MES System can help you monitor all the strategic KPIs for your company. If you want to see a demo or know how it works, you can contact us directly.

Others KPIs

  • Equipment availability
  • Productivity index MOD – SMED
  • ….

A MES System can help you monitor all the strategic KPIs for your company If you want to see a demo or know how it works, you can contact us directly.