What KPIs can you use to improve the quality of your manufacturing process?

Key Performance Indicators (KPIs) are measurables, and they evaluate a process (or) on a larger scale, a team's performance and provide actionable insights for continuous improvement. KPIs are always associated with two aspects: - Clear, Direct & Concise Definition. - Numeric Values that measure its effectiveness and analyze the behavior as well as give a clear perspective and understanding of the true meaning of that definition of the KPI defined. KPI's can be expressed: Directly: Can be Simple Numbers (such as No. of Safety Near Misses, Customer Service Levels etc.) Indirectly: The final value of the KPI is arrived by calculation using formulae with other KPIs/ without other KPIs (Ex: Water consumed per ton of product produced) etc.

To improve the quality of your manufacturing process, monitor key performance indicators (KPIs) such as defect rate, first pass yield, customer complaints, scrap and rework rates, process capability, cycle time, equipment downtime, supplier quality, on-time delivery, employee training, non-conformance reports, return rates, process audits, overall equipment effectiveness (OEE), and the cost of quality. Regularly assess these metrics to identify areas for improvement, enhance efficiency, and ensure consistent production of high-quality products.

KPIs are very vital as they are data-oriented, and provide actionable insights & measures for continuous improvement, and give an understanding of whether the process is safe, consistent, repeatable, efficient with manufactured products are of the highest quality. A simple analogy is a human heart in a vital monitor, wherein the vitals: beats per minute (bpm), blood pressure (mmHg), SpO2 (in %) give an understanding of whether the heart is healthy or not. If the vitals drop, then measures have to be taken to ensure the heart is stabilized and healthy. The analogy applies to KPIs as they define the "health" of the manufacturing process in terms of safety, quality, efficiency, consistency, and repeatability. Hence, KPIs are very useful.

In manufacturing, common KPIs include: On-time Delivery - Measures the rate of orders delivered on time. Production Schedule Attainment - Tracks adherence to production schedules. Revenue Growth and Profit Margins - Financial health indicators. Overall Equipment Efficiency (OEE) - Assesses production efficiency. First Pass Yield - Measures the quality of products without rework. Employee Productivity and Turnover Rate - Employee performance indicators Equipment Downtime - Measure of how often your equipment is down. Unplanned vs Planned is essential to identify production bottlenecks

To choose the right KPIs, you should: Align KPIs with the company's strategic goals. Ensure KPIs are specific, measurable, and provide actionable value. Consider the company's business strategy and what is critical to its success. Select KPIs that are achievable and can drive positive action. Limit the number of KPIs to a manageable number, around 10, to avoid becoming ineffective. You can make a good argument to narrow the scope to 3 KPIs to focus on improving the most important objectives.

Always host a “lessons learned” session. The best way to learn is to find out what went wrong, to ensure it goes right the next time.

To effectively use KPIs: -Set SMART targets (Specific, Measurable, Achievable, Realistic, Time-bound) for each KPI. -Regularly review and report on KPIs to monitor performance. -Use real-time dashboards and displays for effective KPI monitoring. -Adjust strategies and actions based on KPI data to stay on track towards goals. Embrace experiments! Try new strategies and test them. Keep the ones that work. -Ensure KPIs are reviewed periodically to maintain their relevance and value to the company. -Encourage ownership of KPIs among team members to foster accountability and continuous improvement