How performance indicators help us in manual production

Key Performance Indicators (KPI’s) are quantifiable metrics to evaluate the performance of a process, an activity, an organization to provide relevant information in decision-making to achieve established objectives.

In manual production, performance indicators are also essential to measure work efficiency, product quality and resource use. Here are some indicators used in manual production:

Efficiency is calculated by the ratio between the standard (theoretical) time required for production and the actual time used, and practically measures how well the necessary resources (people, materials, time) are used to achieve the planned result. If a process results in “low” efficiency, it means that it uses too many resources and must be intervened and improved.

Efficiency monitoring provides important information for production and management by evaluating waste, bottlenecks, and processes that do not add value in order to be improved and increase productivity.

An efficient process that generates better results with the same resources or the same satisfactory results with fewer resources will reduce operating costs, which will impact the increase in profit margin.

In a dynamic market efficiency is a significant advantage, organizations that optimize resources and offer better and on-time products will attract new customers, increasing competitiveness and long-term success.

The defect rate is the KPI that measures the percentage of products that do not meet the standard requirements of the customer compared to the total number of products made. It helps organizations identify problems in the production process and maintain a high level of quality.

Defective products generate additional costs for scrap, repairs, complaints, overtime, special transports, i.e. consumption of additional resources compared to those planned, affecting the profitability of companies. Detailed analysis of defects can also help optimize manufacturing processes, reducing losses and improving efficiency.

Efficient management of performance indicators helps organizations adjust their strategies in real time and achieve their objectives with minimal resource consumption, which are critical aspects for any business that wants to constantly evolve.