How to Turn your KPIs into Profit and Production

There’s an old saying, “If you can measure it, you can manage it.”

Manufacturers with Production Control Systems (PCS) know the truth of that saying. With the PCS providing the real-time data and process control, these companies supercharge their Key Performance Indicators (KPIs) with real-time data to accurately track and measure shop floor progress. That real-time data turns KPIs from an instrument of observation to a tool for radically accelerating and sustaining production while generating profit.

Turn Raw Production Data into Efficient Operations

Here are four ways real-time data and KPIs deliver powerful benefits for manufacturers:

  • Accelerate and sustain continuous improvement programs.

Continuous improvement is critical, but many companies have difficulty maintaining progress once the program is over. New behaviors are difficult to maintain, and old habits die hard. KPIs allow the company and team members to monitor the progress. Your team can use that real-time data to support improvements long after the program is over. With everyone sharing the KPI and monitoring progress, collaboration increases and success is shared.

  • Benchmark performance to identify areas for improvement.

Use KPIs to benchmark and compare areas of the business. Identify underperforming areas and discover what works in areas of high-performance. With that insight, you’ll discover those slight adjustments that pay big dividends. For example, higher scrap and non-conformance rates at certain operations may indicate machines or tools that require maintenance, or a problem with a supplier. Target and eliminate the problems for a positive net effect across the production value chain.

  • Identify higher profit work

KPIs are an excellent way to evaluate production data in real-time, revealing the inefficiencies that cripple profit margins if left unchecked. For example, Estimated versus Actual production times, a common KPI, identify products that consume more resources than expected, delivering a lower profit. By focusing on higher-profit work, the company generates more revenue for less effort.

  • Evaluate planned workarounds

When an issue occurs in production, supervisors will implement planned workarounds that often result in more problems than they solve. KPIs monitor progress as the workaround is implemented. Evaluate the solution in real-time and implement additional changes as needed to maintain progress. With KPIs, the orders stay on schedule and ship dates aren’t missed.

Turn Real-time Data into Production and Profit

Most, if not all, manufacturers utilize Key Performance Indicators to monitor production. The difference for manufacturers with a Production Control System in place is the real-time data that fuels the KPI. Supervisors and management track and monitor production, accessing critical KPIs from anywhere. The PCS makes the company more agile, able to control production and manage work. The shop floor reacts to issues and opportunities as they happen, rather than studying events in a report a day later.

Contact CIMxContact CIMx today to see how Quantum can supercharge your KPIs and reports with real-time data to accelerate production and profit for your business.

Topics: What can analytics and real-time data do for you?

Written by David Oeters