Key Points In Building Manufacturing Operations Metrics
When someone speaks about manufacturing operations
, he basically pertains to the operation of the company, particularly the facilities which may include the operations within the building. Most people confuse the term with maintenance but they have actually different subjects. There are four groups of people involved in manufacturing operations and they are the operators, technicians, engineers and the management. When it comes to building the balanced scorecard on this area, there is a need to take focus on the manufacturing operations metrics. This is because they are the ones that will measure the important aspects within the facility.Generally, the manufacturing operations metrics are called the key performance indicators. Now, it is important that you understand that there are key points necessary here. These will enable you to build the scorecard system successfully. The first one here is to fully comprehend the needs, demands and the expectations of the stakeholders. These people are the ones that affect and influence the programs as well as the products and services in the company. Therefore, it is important to prioritize them. After understanding the needs of the stakeholders, you will now have to document them and summarize them in order to grasp them fully. You will need to read them and regularly update them if it is a necessity. Usually, the document wherein you will file them together is known as the Statement of Needs or SON. From here, the manager will be able to identify the critical success factors or the CSFs. When these are already described and distinguished, the metrics will be laid out.
The metrics that will be developed should be aligned with the SON because they will have a great effect on the demands of the stakeholders or the customers. It is important that the company is able to concentrate on the options with the use of the strategy diagram or map. This will quantify the benefits and the risks that will be encountered with the developed KPIs or metrics on the manufacturing operations. After deriving the appropriate indicators, it is time to establish a baseline. The organization should periodically measure the indicators based on the operational concerns. When reviewing the KPIs, one will be able to determine if there is a need for change or improvement in the balanced scorecard for the operations.
In defining the metrics, the most important things to consider include the value proposition in which you will have to cover aspects such as the receiving and check up of the arriving raw materials or ingredients, the preparation and weighing of the materials and the packaging and storing. You might also want to inspect the product specification, the employee certification, production scheduling, material procurement, material logistics and the equipment maintenance.
Measuring the KPI will not only involve one product segment. It is important that you gauge all of the available divisions in manufacturing operations. This is also applicable when visualizing the metrics. Now, you can examine and report the indicators to the extended enterprise since you have successfully developed your balanced scorecard through he appropriate manufacturing operations metrics.
by: Willie Greg