Why Monitoring Productivity is a Game-changer for Food & Beverage Manufacturers
Food and beverage manufacturers may use a strategic philosophies such as Kaizen, Lean Manufacturing, Six Sigma, Total Quality Management or Continuous Improvement to measure factory performance. A common thread running throughout each for monitoring productivity is the Key Performance Indicator (KPI.) KPIs are used "to assess, analyze and track manufacturing processes." The article, "7 Common KPIs for Production Monitoring" by Red Lion Controls Inc. breaks down what they are and how they can assist with monitoring productivity and analytics.
If you've worked with one of the aforementioned strategies but not the concept of KPIs before, Red Lion Controls explains, "KPIs are assorted variables that organizations use to assess, analyze and track manufacturing processes. These performance measurements are commonly used to evaluate success in relation to goals and objectives."
Monitoring productivity with KPIs & analytics
Red Lion Controls discusses using visual management to bring the critical information that KPIs reveal onto the factory floor—"specifically to production output, efficiency and quality." In doing so, they write, "employees have a better sense of production levels and tend to strive for higher performance."
Visual management simultaneously "provides actionable information that allows supervisors to better monitor performance and determine, in real‐time, areas that may need improvement. The overall result helps to drive productivity throughout the organization by increasing efficiency, quality and uptime."
Although KPIs will vary from organization to organization, the article presents these seven common KPIs to aid in monitoring productivity:
A metric relating "to the amount of product produced." The count can be good or bad, depending on "the amount of product produced since the last machine changeover or the production sum for the entire shift or week."
2. Reject Ratio
"Production processes occasionally produce scrap, which is measured in terms of reject ratio. Minimizing scrap helps organizations meet profitability goals so it is important to track whether or not the amount being produced is within tolerable limits."
"Machines and processes produce goods at variable rates. When speeds differ, slow rates typically result in dropped profits while faster speeds affect quality control."
"This KPI helps motivate employees to meet specific performance targets."
5. Takt Time
"The amount of time, or cycle time, for the completion of a task."
This is "a metric that multiplies availability by performance and quality to determine resource utilization."
Downtime "is considered one of the most important KPI metrics to track," whether it's due to a machine "breakdown or changeover."