Industry Watch Corner
You can’t improve what you don’t measure. KPI or Key Performance Indicators are the metrics used to measure how your company is performing. If you are part of the business world, you are probably familiar with the term. It is important for every business to choose the right metrics that can measure the success of your company and work towards improving your performance. It is important to understand that KPIs vary with organization, department, and even team. There are many types of KPIs. They can be quantitative, measured as a number or qualitative, based on standards set by expert opinion. They can be leading, predictive of future success and failure or they can be lagging, reflective of success and failure of past events. But the best way to categorize KPIs is by industry.
Just like any other industry, KPIs are important to measure the health and progress of the Manufacturing and Automobile industries. Besides knowing what your KPIs are, you will need to work on ways to improve these KPIs. KPI real-time dashboards monitor your KPIs and give you insights to improve them. They help in maintaining your supply chain and manage your logistics by retrieving data of your systems in real-time. By using Artificial Intelligence they run complex algorithms of predictive analysis to forecast demand of your vehicles. They analyze your customer data and give you insights at the right time to increase and decrease production depending on the demand of the customers. They help in customer segmentation and analysis of regions to convey high performing regions. These regions will need higher demand than other low performing regions.
Let us look at key performance indicators examples for the Manufacturing and Automobile industry
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Overall Equipment Efficiency: It is the product of availability, performance, and quality of equipment. It measures the overall effectiveness of equipment and can even be calculated for the factory. It highlights poor performance and quantifies improvements.
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Production Volume: No. of units manufactured in a time period. This helps us determine if the supply meets the demand of vehicles
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Production Downtime: Analysing your planned downtime and optimizing it for better productivity.
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Utilization Rate: Measuring the capacity of production against the actual production. The utilization rate will vary according to demand during the year but low utilization for long periods may indicate losses.
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Cycle Time: The average time required for making a single unit of a vehicle. Recording data of the production line will help us determine if optimal time is maintained in each process and point processes that take longer. We can then optimize production time.
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Yield: Measure of the number of vehicles that are made without any defects in one attempt. We can measure the yield for individual processes to highlight faults in the production line.
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Recall Rates: It is the percentage of vehicles or parts that were sent back due to defects amongst total vehicles produced.
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Inventory Turnover Ratio: This is a measure of the number of vehicles sold and replaced in a time period. It is a ratio of vehicles sold and vehicles in the inventory.
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On-time Delivery Rate: The percentage of time that a manufacturer delivers a product on time to the customers.
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Back order rate: The number of orders that cannot be fulfilled when the customer places an order.
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Mean time between failures (MTBF): It is the average time between failures of a system. It can be calculated by dividing the total operation hours by the number of failures during this time.
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Mean time to repair (MTTR): It is the average time to repair failure and return to production. A good MTTR will tell you your readiness in emergency situations and how your response is to failure.
FLASH, a product by geniSIGHTS is a real-time dashboard that can help the automobile and manufacturing industries by assisting in supply chain management. Its voice-controlled AI model solves your queries on the go. You can monitor the data across regions in a single view. The simplified visual representation will help you identify red flags quickly so you can act on them and improve your manufacturing process. Using a KPI dashboard will not only assist you to monitor your KPIs but will give you the power to optimize them.
Read about flash at https://flash.genisights.com/