Key Performance Indicator on Smart Manufacturing

Table of Contents

1. Introduce
2. What is a Manufacturing KPI?
3. KPIs On Smart Manufacturing
4. Reference

 

Introduce

 Industry 4.0 is known as the 4th industrial revolution. The term was popularised in 2016. Industrial change was the joining of technologies like the Industrial Internet of Things(IIoT), autonomous vehicles, quantum computing, Artifical Intelligence and 3D Print are impact every step of the manufacturing process.

 Especially, The global production and supply network operates through ongoing automation of traditional manufacturing and industrial practices using ICT technologies. The ability of machines, devices, sensors, and people to connect with each other can increase industrial automation. Like self monitoring system and smart mahcines can analyse and diagnose issues without human.

 As a result, All manufactures aims to increase productivity and minimize costs in Industry 4.0. It is necessary to understand and use smart manufacturing Key Performance Indicators.

 

What is a Manufacturing KPI?

 KPIs are used throughout the manufacturing process. How do we measure manufacturing perfor-mance? Manufacturing KPIs provide quantitative measure of strengths and weaknesses. what are KPIs in Manufacturing? They can help you to understand productivity, quality, customer satistaction and profit.

 Why use that? Every manufacturing companies use KPIs. It is to improve quality and reduce costs. Using ICT technologies can use for real-time analysis and interactive dashboards. It can operate by take a data-driven approach.

 

KPIs on Smart Manufacturing 

1. Production Volume 

Production volume is total number of products manufactured during a specified time period. This KPI to understand the total output yours is capable of producing.

 

2. Production Downtime

Production Downtime is the amount of time a factory's production lines are not operating. It affect overall efficiency of a manufacturing process.

 

3. Prodcution Costs

Production costs include the expenses incurred from manufacturing a product. Like raw materials cost, labor cost, rent and overhead

 

4. Defect Density

Defect density is a quaulity metric that the number of defective products compared to the total volume of manufactured products. Defects make negotive impact customer satisfaction.

 

5. On-time Delivery(OTD)

On-time delivery is the percentage of products delivered on time to customers compared to the total volume of delivered products. Delay make negotive impact customer satisfaction.

 

6. Cycle Time

Cycle time is the average amount of time it takes to produce a product. It can be used to analyse overall efficiency of a manufacturing process.

Demo manufacturing dashboard by Ellen Blackburn

 

Reference

Abby Jenkins, "73 Essential Manufacturing Metrics and KPIs to Guide Your Industrial Transformation", https://www.netsuite.com/portal/resource/articles/erp/manufacturing-kpis-metrics.shtml

Insightsoftware, "30 Best Manufacturing KPIs and Metric Examples for 2023 Reporting", https://insightsoftware.com/blog/30-manufacturing-kpis-and-metric-examples/

William Malsam, "10 Manufacturing Key performance Indicators(KPIs)", https://www.projectmanager.com/blog/manufacturing-kpis