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Performance Indicators for Plastic Manufacturing

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Compleet set og PI ready for use

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Performance Indicators for Plastic Manufacturing

  1. 1. Performance Indicators for Plastic Manufacturing Suni Vatnhamar 2016 1
  2. 2. PERFORMANCE INDICATORS FOR PLASTIC PACKAGING MANUFACTURING Complete set of performance indicators for plastic packaging production Ready for use ! Suni Vatnhamar 2016 2
  3. 3. PERFORMANCE INDICATORS (PI) OPERATIONS FINANCE SALES EXCELLENCE HR Suni Vatnhamar 2016 3
  4. 4. PERFORMANCE INDICATORS OPERATIONS  OEE  Internal Rejects  Customer complaints  Capacity Utilisation  Spoilage  Materials Variance  Energy consumption  Man efficiency  Delivery precision Suni Vatnhamar 2016 4
  5. 5. PI Operations 1) OEE% (overall equipment effectiveness) OEE Availability% x OEE Quality x OEE Performance% 2) Internal Rejects% number of rejected parts Total Number Produced (good + rejects) Suni Vatnhamar 2016 5
  6. 6. 3) Customer complaints 3a) Number of total customers complaints Number of recorded customers complaints (product-related) which are proven to be a result of our failure or one of our suppliers. Reported as an absolute number with an annual target to be set based on improvement versus previous year’s result. # per month/YTD with target based on improvement versus LY 3b) Number of customer complaints resulting in credit notes # per month/YTD with target based on improvement versus LY 3c) Value of credit notes from customer complaints Value per month/YTD with target based on improvement versus LY PI Operations Suni Vatnhamar 2016 6
  7. 7. PI Operations 4) Capacity Utilization% 100% - Non-Utilization due to no customer order Total Theoretical Available Machine Hours Theoretical Available Machine Hours based on 7days/24hrs operations system. 5) Spoilage Using existing definition, but introducing Raw Material Variance as a more important PI in this field. Suni Vatnhamar 2016 7
  8. 8. PI Operations 6) Materials Variance Total good units produced (T) 100% - Total resins used in Conversion process (T) Suni Vatnhamar 2016 8
  9. 9. Materials Variance Measure is A - B = C Month Operations (Conversion process) Opening Stock Resin (T) Masterbatch & Additives (T) Excluding ‘Flake’ Closing Stock Resin (T) Masterbatch & Additives (T) Excluding ‘Flake’ Stock Resin purchased during month AB C Good bottles x StdCut off * * Same time every month Cut off * Suni Vatnhamar 2016 9
  10. 10. Materials Variance Losses within the Conversion Process Good bottles Held stock Rejects Purge Contami- nation Masterbatch/ additives over use Incorrect std’s STOCK Materials Variance 90-95 % Suni Vatnhamar 2016 10
  11. 11. PI Operations 7) Energy kwh used per tonnage converted (calculated automatically in Hyperion from reported Kwh and tonnage converted) 8) Man efficiency Tonnage Converted per average FTE 9) Delivery Precision% Number of order lines delivered on agreed delivery date against total number of order lines ordered by the customers in the same period – expressed in % Suni Vatnhamar 2016 11
  12. 12. PERFORMANCE INDICATORS FINANCE  RM days  FG days  Creditor days  Debtor days  WC turnover  EVA  Overdue receivables Suni Vatnhamar 2016 12
  13. 13. PI Finance 1) Raw Material days See definition in Financial handbook 2) Finished Goods days See definition in Financial handbook 3) Creditors days See definition in Financial handbook 4) Debtors days See definition in Financial handbook Suni Vatnhamar 2016 13
  14. 14. PI Finance 5) Working Capital Turnover Net sales (S4000) over last 12 months Average Normalized Working Capital (Norm_WC)over last 4 quarters 6) EVA See definition in Financial handbook 7) Overdue receivables Proportion of receivables >30 days overdue expressed as a percentage of total receivables Suni Vatnhamar 2016 14
  15. 15. PERFORMANCE INDICATORS SALES EXCELLENCE  Sales per employee  Organic growth  New order balance  RMC per tonnage  # of customer visits  # of prospect visits  # and value of quotations  # of enquiries Suni Vatnhamar 2016 15
  16. 16. PI Sales Excellence - Hyperion 1) Sales per employee 2) Organic growth Increase/decrease of tonnage sold compared to previous year, excluding impact of acquisitions, transferred business, or disposals, expressed as a percentage. 3) New order balance Annualized sales value (after ramp up) of new confirmed orders starting within next 12 months minus value of annualized confirmed losses expressed as a value. 4) RMC per tonnage Raw material contribution per sold tonnage of polymers Suni Vatnhamar 2016 16
  17. 17. PI Sales Excellence to be reported in CRM system 6) # of total customer visits 7) # of visits to prospects 8) # of quotations 9) Value of quotations 10) # of enquiries from customers Suni Vatnhamar 2016 17
  18. 18. PERFORMANCE INDICATORS HR  Sick leave % direct workers  Sick Leave % indirect people  LTA Suni Vatnhamar 2016 18
  19. 19. PI HR 1)Sick leave direct worker (%) Sick leave (%)= total number of sick days / (total number of days worked + days away) for all direct workers 2) Sick leave indirect workers Sick leave (%)= total number of sick days / (total number of days worked + days away) for all indirect workers. 3) Lost Time Accidents (LTA) reported as number of Lost Time Accidents per 1 million working hours on a rolling 12 months period Suni Vatnhamar 2016 19

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