Key Performance Indicator or KPI is a quantifiable measure used to evaluate the success of an organization. Here are key manufacturing KPIs to track.
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Production System and Production Facilitiessanket394
The ppt takes you through some of the production facilities and functions that are part of manufacturing process. And helps in carrying out the manufacturing process and functions more efficeiantly.
Activity based costing is considered to be useful only for Manufacturing Organizations whereas reality is that it is equally usefull to Service providers
Production System and Production Facilitiessanket394
The ppt takes you through some of the production facilities and functions that are part of manufacturing process. And helps in carrying out the manufacturing process and functions more efficeiantly.
Activity based costing is considered to be useful only for Manufacturing Organizations whereas reality is that it is equally usefull to Service providers
This power point presentation related to process costing. which is useful to students who studying B.com, BBA,M.COM MBA etc.
It involves short notes on definition of process costing,its features,applications,difference between process costing and job costing, advantages and disadvantageous of process costing, procedure of process costing,format of process account, process losses and abnormal gain.
Lecture notes for An Introduction to Operations Management (taught by Prof. Christian Terwiesch / University of Pennsylvania / online course at www.coursera.org).
To put it bluntly, throughput time is the time required to make a product. But it’s not only about standing by the assembly line with a stopwatch.
Read more from here.
#mrpeasy #manufacturing #manufacturingsoftware #mrpsoftware #mrpsystem #mrp #erpsystem
Process Characteristics in Operations: Volume, Variety, Flows, Types of Processes & Operations System, continuous flow & intermittent flow system. Process Product Matrix: Job production, batch production, Assembly line & Continuous flow process & production layout Service System Design Matrix: Design of Service system, Service Blue print
Chapter 3 JIT, Value Added and Waste .docxadkinspaige22
Chapter 3: JIT, Value Added and Waste
Elimination
Part1- What is Just-In-Time (JIT)?
Continuous Improvement is a basic and important concept in modern manufacturing,
and it is a cornerstone of JIT and TOM. However, it is a very general and open-
ended concept. Another important element of the modern manufacturing and service
operations is the concept of VALUE_ADDED
Just-in-time (JIT) is an approach to manufacturing which aims to increase “value-
add” activity and eliminate waste by providing the environment to simplify and
perfect processes within an organization. Just-in-time manufacturing means
producing the necessary items, in the required quantities at the appropriate time.
JIT can deliver significant improvements in operating efficiency. Having raw
materials arrive at a manufacturing facility, just in time to enter the production
process allows an organization to minimize the amount of inventory it must hold
and store. It also minimizes the potential cost of obsolescence, which can arise due
to change in product specifications, customer demands, etc..
Putting the JIT concept into practice means a reversal of traditional thinking with
regard to managing a manufacturing process flow. In conventional production
processes, units are transported to the next production stage as soon as they are
ready. In JIT, each stage in the production process looks back to the previous stage
to pick up the exact number of units needed. Product (and services) are pulled
through the process driven by demand from customers, rather than the traditional
approach where product and services are pushed forward based on planned
schedules.
A)-The benefits associated with Just In Time Manufacturing
While the prevailing view of JIT is that of an inventory control system, it is much
more. JIT is an operational philosophy which can deliver a broad range of benefits.
Examples of the benefits associated with implementing a JIT process:
– The production of high quality, high reliability products that customers want,
resulting is satisfied and loyal customers.
– The delivery of products which match the rate that the customers require.
– Optimized manufacturing process lead-times.
– Minimized and eliminated waste of labor, material and equipment.
– All activity having a defined purpose towards meeting customer needs.
– Continuous reductions in process and equipment set-up and change-over times.
– The elimination of unnecessary inventory and improved inventory management
and control.
– Continuous reductions in supplier lead times.
– Ongoing significant improvements in organizational productivity and efficiency.
B)-IS JIT applicable only to Manufacturing?
The concepts of Just In Time are applied to all value creating organizations. While
JIT originated in .
This power point presentation related to process costing. which is useful to students who studying B.com, BBA,M.COM MBA etc.
It involves short notes on definition of process costing,its features,applications,difference between process costing and job costing, advantages and disadvantageous of process costing, procedure of process costing,format of process account, process losses and abnormal gain.
Lecture notes for An Introduction to Operations Management (taught by Prof. Christian Terwiesch / University of Pennsylvania / online course at www.coursera.org).
To put it bluntly, throughput time is the time required to make a product. But it’s not only about standing by the assembly line with a stopwatch.
Read more from here.
#mrpeasy #manufacturing #manufacturingsoftware #mrpsoftware #mrpsystem #mrp #erpsystem
Process Characteristics in Operations: Volume, Variety, Flows, Types of Processes & Operations System, continuous flow & intermittent flow system. Process Product Matrix: Job production, batch production, Assembly line & Continuous flow process & production layout Service System Design Matrix: Design of Service system, Service Blue print
Chapter 3 JIT, Value Added and Waste .docxadkinspaige22
Chapter 3: JIT, Value Added and Waste
Elimination
Part1- What is Just-In-Time (JIT)?
Continuous Improvement is a basic and important concept in modern manufacturing,
and it is a cornerstone of JIT and TOM. However, it is a very general and open-
ended concept. Another important element of the modern manufacturing and service
operations is the concept of VALUE_ADDED
Just-in-time (JIT) is an approach to manufacturing which aims to increase “value-
add” activity and eliminate waste by providing the environment to simplify and
perfect processes within an organization. Just-in-time manufacturing means
producing the necessary items, in the required quantities at the appropriate time.
JIT can deliver significant improvements in operating efficiency. Having raw
materials arrive at a manufacturing facility, just in time to enter the production
process allows an organization to minimize the amount of inventory it must hold
and store. It also minimizes the potential cost of obsolescence, which can arise due
to change in product specifications, customer demands, etc..
Putting the JIT concept into practice means a reversal of traditional thinking with
regard to managing a manufacturing process flow. In conventional production
processes, units are transported to the next production stage as soon as they are
ready. In JIT, each stage in the production process looks back to the previous stage
to pick up the exact number of units needed. Product (and services) are pulled
through the process driven by demand from customers, rather than the traditional
approach where product and services are pushed forward based on planned
schedules.
A)-The benefits associated with Just In Time Manufacturing
While the prevailing view of JIT is that of an inventory control system, it is much
more. JIT is an operational philosophy which can deliver a broad range of benefits.
Examples of the benefits associated with implementing a JIT process:
– The production of high quality, high reliability products that customers want,
resulting is satisfied and loyal customers.
– The delivery of products which match the rate that the customers require.
– Optimized manufacturing process lead-times.
– Minimized and eliminated waste of labor, material and equipment.
– All activity having a defined purpose towards meeting customer needs.
– Continuous reductions in process and equipment set-up and change-over times.
– The elimination of unnecessary inventory and improved inventory management
and control.
– Continuous reductions in supplier lead times.
– Ongoing significant improvements in organizational productivity and efficiency.
B)-IS JIT applicable only to Manufacturing?
The concepts of Just In Time are applied to all value creating organizations. While
JIT originated in .
The Critical KPI to drive Manufacturing ProductivityJason Corder
A net reduction in cost of operations directly and positively affects the bottom line. Companies can boost revenue without sacrificing profitability by factoring in long-term debt-to capital ratio. Since finance puts a premium on a company’s ability to maximize productivity and use existing assets, you have to continually measure, analyze, and adjust your processes. This is accomplished by a rigorous practice of productivity gains, cost cutting with increased efficiencies, and maximizing returns on fixed assets.
Top 10 most important manufacturing performance indicators in 2019MRPeasy
mrpeasy.com
In manufacturing, there are many outside influencing factors, tracking the performance of an operation with KPI metrics means the difference between success and failure. Here are the most important manufacturing performance indicators.
An activity system map is which of the followingramuaa126
For more course tutorials visit
Uophelp is now newtonhelp.com
www.newtonhelp.com
1.
Which of the following is a measure of operations and supply management efficiency used by Wall Street?
Dividend payout ratio
Receivable turnover
Current ratio
Financial leverage
Earnings per share growth
An activity system map is which of the followingyearstart2
For more course tutorials visit
Uophelp is now newtonhelp.com
www.newtonhelp.com
1.
Which of the following is a measure of operations and supply management efficiency used by Wall Street?
Dividend payout ratio
Receivable turnover
Current ratio
Financial leverage
Earnings per share growth
You have been called in as a consultant to set up a kanban control systemramuaa130
For more course tutorials visit
Uophelp is now newtonhelp.com
www.newtonhelp.com
1.
Which of the following is a measure of operations and supply management efficiency used by Wall Street?
Dividend payout ratio
Receivable turnover
Current ratio
Financial leverage
Earnings per share growth
Similar to Key manufacturing business metrics (20)
Qr codes vs. barcodes in inventory trackingMRPeasy
When looking for ways to track your inventory, you will undoubtedly arrive at the dilemma of whether you should use barcodes or QR codes. Even though the basic concept behind the two options is the same, there are notable differences between the two.
Forward scheduling vs. backward scheduling in production planningMRPeasy
Forward scheduling and backward scheduling are key concepts in production planning. What are the differences between the two approaches and which one should you choose for your manufacturing business?
Cellular manufacturing is a method of process improvement and as such, it is an important part of the lean philosophy. It consists of reorganizing your shop floor in a way that would accommodate the greatest efficiency.
Warehouse organization how to set up a smooth running warehouseMRPeasy
Good warehouse organization is key to keeping your inventory processes running smoothly. Here is how to implement warehouse organization best practices.
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Case study A Wrate Engineering gets organized with MRPeasyMRPeasy
Looking for a user-friendly and affordable manufacturing ERP system, the precision engineers of A Wrate Engineering managed to implement MRPeasy without any external help.
How to achieve traceability in manufacturing?MRPeasy
Traceability essentially means having insight into the chain of events that is your business. But how to achieve it and what are the mechanisms that support it?
Read more from our blog.
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Case study how exacta technologies improved productivity with mr peasyMRPeasy
While moving facilities and trying to orient in the pandemic, UK hi-tech server manufacturer Exacta Technologies found resources to implement a new ERP system, all on their own.
https://manufacturing-software-blog.mrpeasy.com/case.../
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U.S. Manufacturing Rebound Carries Over to 2021; Accelerating the Adoption of Advanced Manufacturing Technologies to Strengthen Our Public Health Infrastructure; Manufacturers Outperform Other Sectors, Expecting Growth in 2021; Industrial Internet Consortium and The Smart Manufacturing Institute Announce Strategic Partnership.
Read more from our blog
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How to calculate the cost of goods manufactured (COGM)?MRPeasy
Calculating the Cost of Goods Manufactured is a good way to get an overview of production costs and how they relate to the bottom line of your business. It allows management to identify cash drains, to adjust prices, and to track the development of the business.
Read more from here.
#cogm #costofgoodsmanufactured #manufacturing #manufacturingsoftware #manufacturingsystem #mrpsystem #mrpsoftware #mrpeasy #mrp #erp #erpsoftware #productioncosts
U.S. Manufacturing Is Heating Up; U.S. Factory Activity Approaches 2-1/2-Year High; COVID-19 Hitting Supply Chains; UK Manufacturing: The Impact of a Third National Lockdown; 5G and Manufacturing: The Missing Link to Drive Industry 4.0?
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Manufacturers Increasing Investments in Digital Technology;
UK Economy: Manufacturing Sector Strengthens In December;
Rebound in Eurozone Business Activity Overshadowed by Fresh Lockdowns;
German Factories Prop Up Economy With Forecast-Beating Growth
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New Report Identifies Cities with Most Manufacturing Jobs; A Call to Action: Help Specify a New IoT Communication Protocol; UK Manufacturers Enjoying Boost From Sales Direct to Customers; Australia’s Advanced Manufacturing is Creating Careers.
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What is cycle time in the manufacturing processMRPeasy
Cycle time is often confused with throughput time and takt time, but it is nevertheless a separate manufacturing performance indicator used to measure the duration of specific production processes and to get vital insight into your production efficiency.
Read more from here.
#throughputtime #cycletime #keyperformanceindicators #productionefficiency #mrpeasy #manufacturing #manufacturingsoftware #mrpsystem #erpsystem #manufacturingprocess
US Manufacturing Sector Slows in November; U.K. Manufacturing Expands as Imminent EU Exit Boosts Orders; Germany’s Partial Lockdown Slows Growth in Manufacturing – PMI; Industry 4.0 a National Priority.
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US Manufacturers Have Jobs to Fill. Finding Workers Here at Home is the Problem;
5G to Give UK Manufacturing £5.2bn Economic Boost;
CIPS: Latest PMI Survey Shows Growth in UK Manufacturing;
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#mrpsoftware #mrpsystem #manufacturingindustry
What is cost of quality and how to calculate itMRPeasy
Cost of Quality is the sum of the costs related to providing a quality product and the costs related to not providing a quality product. While being an effective measure to identify cash drains, it can also be used to balance the price and quality relationship of your products.
Industrial ETFs to Gain on Improving US Manufacturing Output; Manufacturing Industry Overwhelmed by Innovative Threat Actors; Germany to Pump Additional €3 Billion in Ailing Automotive Industry; Creating the Pathway to Excellence for Australian Manufacturers.
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Advanced Manufacturing – Solutions That Are Transforming the IndustryMRPeasy
Advanced manufacturing is on its way to transform the industry. And there are solutions in place already that could help even small manufacturers keep up in the rapidly changing business environments.
The Case for Bringing Home American Manufacturing; UK Manufacturing Invited to say What Financial Support is Needed; Manufacturing and Apprenticeships – a View From Germany; Australia-China Relations and Australia’s Manufacturing Industry.
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Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
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2. Key Performance Indicator or KPI is a quantifiable measure used to evaluate the
success of an organization. Here are key manufacturing KPIs to track.
Key performance indicators (KPIs) allow companies to effectively manage the
resources available to get products. In other words, KPI management enables
you to make better use of production capacity, increase productivity, improve
product quality, improve delivery times, minimize waste, and control costs.
We will explore into some useful KPIs that a manufacturing business may apply
for performance improvement.
3. The Overall Equipment Effectiveness or OEE is a key performance indicator that enables the
production centers to monitor and improve the productivity of a machine or a production
line. There are many ways to determine the OEE, one of which is to break down availability,
performance, and quality. The OEE has the following formula:
OEE = Availability * Performance * Quality
This means it measures the percentage of time that a machine or production line produces
good quality articles during the scheduled time.
Overall Equipment Effectiveness (OEE)
4. Let’s see an example. A machine was planned to run from 6:00 a.m. to 2:00 p.m. (8 hours)
and the standard production rate is 100 units/hour. Suppose there were 30 minutes of
machine downtime, and during that 8 hours 700 units were produced, for which only 640
were of adequate quality. To determine the OEE, you may proceed as follows:
5.
6. Overall Equipment Effectiveness shows the value-added time and highlights the losses. The
losses can be defined as the activity that does not add value to the product. There are many
categories to classify the losses:
1. Machine breakdown
2. Contingencies
3. Setup time
4. Shortstops
5. Speed loss
6. Scrap or quality defect
Every operational team should measure and highlight the operational losses and implement
countermeasures to increase the OEE.
7. The Work-in-process (WIP) is a key performance indicator that measures the value of raw
materials or subassemblies that have entered the manufacturing process, before obtaining
the finished good.
There are two main groups:
Waiting to be processed
Being processed
The WIP has the following formula:
WIP = Manufacturing Lead Time * Production Flow Value
Work-in-process (WIP)
8. Let’s say that a work center takes 5 hours to finish a batch and the production flow rate is in
average 100 kg/h at a cost of $1/kg, the WIP will be:
WIP = 5 hours * (100 kg/h * 1 $/kg) = 500$
This means that there is $500 of material in that work center. Following the two main
categories, it may be that this material is on any machine or waiting to be used.
9. Work-in-process inventory depends on the manufacturing lead time and manufacturing costs,
the number of orders in process, and the batch sizes. Further analysis will be required by the
operational team to determine any way of performance improvement. Among others, such
improvement may result in:
• reduction of the manufacturing cost
• reduction of the manufacturing lead time
• optimization of the batch sizes
• optimization of the labor
• increase of space in the shop-floor
• enhancement of the transition between the work centers
10. The Lead Time or LT is the key performance indicator that measures the time that takes to
perform a process. It can be:
• Manufacturing Lead Time, which is the total time that a production center requires to
manufacture a product.
• Delivery lead time, which is the time taken to deliver a finished product to the customer.
• Total lead time, which is the time from when an organization receives an order till the
delivery of the order to the customer.
Lead Time (LT)
11. To shorten the lead times, every manufacturing business uses different manufacturing
strategies, depending on the type of product they manufacture:
• Make to Stock
• Assemble-to-order
• Make to Order
• Engineering to Order
Lead Time (LT)
12. The differences between themselves depend on
• The nature of the items (standard or customized)
• The nature of the equipment (specific machinery or general-purpose machinery)
• The nature of the process (design, manufacture, assemble, etc.)
And the type of production system the organization has
• Flow System, for example, a refinery.
• Bath Manufacturing, for example, when producing metal spare parts.
• Fixed Position System, for example, when building a skyscraper.
Lead Time (LT)
13. The On Time in Full or OTIF is the key performance indicator that measures the amount of
orders which had been delivered with the right quality and the right quantity on time to the
customer. To get the shape of a ratio, it is compared to the total amount of orders.
The OTIF has the following formula:
On-time-in-full (OTIF)
14. Let’s assume that an organization has currently 100 orders for delivery today, but:
• 4 orders have not reached the quantity required by the customer
• 3 orders exceed the quantity required by the customer
• 2 orders contain defective products
• 1 order arrived late
Then the OTIF on that day will be:
On-time-in-full (OTIF)
15. Finally, we can say that the On Time in Full is a strict KPI that measures the service level of
an organization and it involves many functions (commercial, logistics, production,
purchasing, etc.). On the other hand, it is necessary that every organization defines the
tolerances involved with the product defects, quantities per order, and late arrival.
By breaking down the losses, it can highlight:
• Delays within the supply chain
• Product defects
• Shipments with different quantities to the sales order
On-time-in-full (OTIF)
16. The cost per unit (CPU) is a powerful key performance indicator that helps a manufacturing
system to optimize the cost of the products. It also helps to offer competitive prices in the
market, and also increase the profit of the company.
The CPU has the following formula:
In which, To give a simple example, let’s assume an organization that manufactures 1000
units of a product with the following cost breakdown:
• Direct Material – $3000
• Direct labor – $2000
• Manufacturing Overhead (MOH) – $1000
Cost per unit (CPU)
18. There are different methodologies to allocate Manufacturing Overhead when a company
produces a mix of products. The methodologies can be standard cost, direct cost, activity-
based cost, etc.
It is very important to define the correct allocation methodology. It will help to define how
profitable or not a product is and set the price by adding the markup to the total product
cost.
Cost per unit (CPU)
19. In any case, every KPI follows an iterative process to improve and reach business goals, as
follows:
Measure the KPI
Break down the KPI into categories
Sort the categories with a higher percentage of losses, for example by using Pareto charts
Find the root cause of the problem
Implement countermeasures for problem-solving
Re-measure the KPI as an iterative process.
As an additional consideration, note that some of the terms used to define each KPI in this
article may vary depending on the author and the particular use within each organization.
Cost per unit (CPU)