Category Archives: Production

Percentage of waste generated

Definition:
Percentage of total raw material that ends up as waste

Calculation:
(waste / total raw material input) x 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Reducing environmental impact; cost effectiveness

Percentage of waste recycled

Definition:
Percentage of total raw material that ends up as waste, and will be recycled to be used as raw material in the production process again

Calculation:
(recycled waste / total waste) x 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Reducing environmental impact; cost effectiveness

Water consumption per production unit

Definition:
Total liters of water used in the production process for producing one single unit

Calculation:
Sum of liters water used per produced unit

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Reducing environmental impact; cost effectiveness

Water consumption per sales dollar

Definition:
Total liters of water used in the production process, per sales dollar

Calculation:
Sum of liters water used per sales dollar

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Reducing environmental impact; cost effectiveness

Emissions from production into the environment

Definition:
Amount of emission into the environment from production. The emission type has to be predefined, e.g. CO2 or other waste from the production process.

Calculation:
Sum of emission

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Reducing environmental impact

Energy consumed per unit

Definition:
The amount of energy that has been used to produce a single unit. The lower the amount of energy, the lower the production price and the lower the environmental impact

Calculation:
Amount of energy (e.g. KwH)

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Reducing environmental impact; cost effectiveness

Percentage of recycled material used as raw material input

Definition:
Percentage of material used within the production process as raw material that originally is waste from another process or used products.

Calculation:
(recycled material / all used material) x 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Reducing environmental impact; cost effectiveness

Days working overseas on jobs

Definition:
Number of days working overseas on jobs

Calculation:
Sum of working days overseas

This KPI is measured as: Time (e.g. Years, Minutes)

Interpretation of results: Depends On The Goals

Strategic objective:
Happy employees make happy customers, which make happy shareholders

Unit level costs

Definition:
Unit level costs arise from activities that are performed at least once for each unit of product. For example, machining a surface, drilling a hole, or attaching a subassembly must be done for eacht and every unit produced. These costs include direct labor and material, machine costs, and direct energy costs.

Calculation:
Sum of direct labor costs, direct material costs, direct machine costs, direct energy costs

This KPI is measured as: Financial Value (e.g. €, $)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability

Batch-level costs

Definition:
Batch-lever costs arise from activities performed once for each batch or lot of products. For example, machine setups, cleanup, moving the batch to the next step in the production process depend on the number of batches rather than the number of units in each batch. Purchase orders and inspections are also examples of batch-level activities. These costs occur for each batch, independent of how many units are in the batch.

Calculation:
Sum of all types of costs from activities performed for a batch

This KPI is measured as: Financial Value (e.g. €, $)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability