Category Archives: Manufacturing
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 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
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
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
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
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
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
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
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
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
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
Product-level costs
Definition:
Product-level costs arise from activities to support the production of the product or model. For example, engineering support costs for process modifications and product design depend on the existence of the product line and do not vary with the number of units or number of batches produced.
Calculation:
Sum of all costs for supporting production
This KPI is measured as: Financial Value (e.g. €, $)
Interpretation of results: Lower Is Better
Strategic objective:
Increase profitability
Product-level costs arise from activities to support the production of the product or model. For example, engineering support costs for process modifications and product design depend on the existence of the product line and do not vary with the number of units or number of batches produced.
Calculation:
Sum of all costs for supporting production
This KPI is measured as: Financial Value (e.g. €, $)
Interpretation of results: Lower Is Better
Strategic objective:
Increase profitability
