Operations Results KPI Management System

Software solution for preparation of Operations KPI Monitoring for a Manufacturing Company

EFFICIENCY OF OPERATIONS

The operational efficiency as measured using a deployed excellence model or a production system is reflected in Operations KPI. It is said that the prevention is better cure and is less expensive. An effective MIS highlights the areas where an action is required before the damage is done. The success of the operations teams depends on how they perform in synergy to produce a desired result which is total customer satisfaction in terms product mix with qty, delivery schedule and delivery model (JIT).

The areas which need to be considered while measurements of efficiency of operations are

  1. Requirements from Customer
  2. Resources available
  3. Plan – Procurement and Production
  4. Execution of Plan – Procurement and Production
  5. Delivery of the products to Customers


Synergy in Operations

MIS is presented as a set of reports and graphs indicating the status and progress made in various areas being monitored and represented by Key Performance Index.

KEY PERFORMANCE INDEX (KPI)

The performance or efficiency is measured in each of the functional area in terms of the index or a Key Performance Index (KPI). KPI is an indicator of the extent to which the function was executed against plan and is compared with the target. KPI gives an overall idea of success or failure in a particular functional area. Number of such KPI are defined depending on the products manufactured, process, market, facilities available, technology employed and above all, a excellence model and methodologies used like TPM, TQM, Lean manufacturing or Toyota Production system.

OBJECTIVES

  1. Measurement of Operational efficiency on standard excellence system or a organization specific excellence system developed in form of proprietary production systems.
  2. MIS systems should facilitate the data entry where ever required and input from ERP at an appropriate point. In every organization where such kind of system is required will have some or other kind of ERP system in place. At many locations data is generated in ERP which can be used for MIS avoiding duplication of data generation.
  3. The system operates independent of MS Excel Software. This will provide inherent robustness, make it mistake proof, person independent and non vulnerable.
  4. Data is entered at the point where data is generated not by special dedicated person.
  5. Overall reduction of resources required for MIS generation
  6. Anyone having access to the system can generate the MIS report required, no need to ask for any report.

TYPICAL SYSTEM ARCHITECTURE

In operations MIS system data flows from various sources which include Customer’s demand, production plan, equipment capacity and scheduling, maintenance data for downtime and breakdowns, inventory data, supplier schedule and delivery, quality data and sales & dispatches data. A typical layout of any Operations MIS system is displayed in the picture drawn below.


TYPICAL SYSTEM ARCHITECTURE

Some of these data’s are internal data which are captured in ERP software or provided separately by manual data entry. Some data items are external data which are generated at customer and suppliers but required for Operations MIS.

MIS is generated considering all these data items which are either provided separately or taken from ERP software. These MIS is generated in form of reports and graphs, a quick view is provided in form of a dashboard. This MIS forms the basis of operations decision support system and operation expert system.

KPI DASHBOARD

A typical dash board looks like the one shown in the picture below, however they have to be customized as per the need and requirement.

When the system opens it shows the current status of the KPI chosen for the display on dashboard. Few primary KPI can be displayed on Dashboard and others can be views by selecting menu options.


KPI DASHBOARD

Graphical Representation

  1. Type of graphical representation as relevant to best demonstrate the parameter performance.
  2. Each parameter which is represented graphically will have previous year average column, year till date column and 12 columns for each month from January for the current year.
  3. A standard or Target line will be drawn in green color with points to highlight at every month.
  4. An icon to be drawn to display the status reflected by graph is satisfactory or unsatisfactory

NORMALLY USED KPI

This measurement of efficiency of operations is done using predefined Key Indicators calculated at required / applicable monitoring area like Plant Level, Department Level, Supplier Level. These list given below is only illustrative and provide few parameters and can include any other KPI depending on need and other functional areas as well. A complete List of Key Performance Indicators which are generally monitored is given at the end of this document. Parameters monitored are relevant to the business the organization is involved in.

A - PLANT LEVEL KPI

  • Synchronization ratio %
  • Inventory Days % - Raw material %
  • Inventory days – WIP (Days)
  • Overall Equipment Efficient (OEE) %
  • Heijunka Conformance : Sequence (%)
  • Heijunka Conformance : Qty (%)
  • Supplier PPM
  • 5 S Score (WU)
  • Accidents Major & Minor (Nos)
  • Customer Complaints (Nos)
  • Internal Rejections (%)
  • Direct on Line Delivery (No of Components)
  • Machine Up Time
  • Daily Fluctuations
  • Contribution to direct man power ratio
  • Manpower Deployment efficiency
  • Human Productivity – Units / Man Hour
  • Order to Delivery Ratio (%)
  • Production Plan Vs Actual Performance (%)

B - DEPARTMENT LEVEL KPI

  • Human Productivity Units / Man Hour
  • Machine Productivity – Units / Machine Hour
  • Scrap Rs / Unit
  • Synchronization Ratio %
  • Manpower Deployment Efficiency
  • WIP – Qty
  • Production Plan Vs Actual Performance (%)
  • Heijunka Conformance Ratio - Sequence %
  • Heijunka Conformance Ratio - QTY %
  • MTBF
  • MTTR
  • % Downtime
  • Stoppages wise pareto
  • Hourly Production Plan Vs Actual Adherence

B – SUPPLIER KPI (FOR MONITORING AT PLANT)

  • Delivery Schedule Adherence (%)
  • Delivery Window Timing Adherence
  • PPM – Parts Per Million
  • Direct On Line Delivery (No Of Components)

C – SUPPLIER KPI (FOR MONITORING AT SUPPLIER)

  • Delivery Schedule Adherence (%)
  • Material Receipt Window time Adherence
  • Downtime (Min)
  • Material Efficiency – Scrap (%)
  • Premium Freight
  • Internal Rejections
  • Handling Out Compliance
  • Human Productivity (Units / Man Hour)
  • Machine Productivity (Units / Machine Hours)
  • Heijunka Conformance ratio – Sequence
  • Heijunka Conformance ratio – Quantity
  • Delivery Rate

D – OTHER KPI (Where ever applicable)

  • Furnace Efficiency
  • Boiler Efficiency
  • Power Cost Vs Sales
  • Water Cost Vs Sales
  • Consumable tracking

MONITORING AREA

The parameters can be monitored at the level detailed in the diagram. The diagram depicts the typical organization structure.


MONITORING AREA

The monitoring area for the parameters is as per the given MIS requirement sheet as per the structure drawn above. Some KPI are derived at Company level, some are derived at Plant level, and some are derived at Department or cell level. Some KPI like MTBF, MTTR, % Downtime, are derived at equipment level.

PERIODICITY OF KPI MONITORING

The parameters can be monitored for any period defined by from date and to date, it can be for a day, week, month, quarter or any period as per the requirement.

ACCESSIBILITY

Role based feature accessibility model will be provided allowing the required data visibility as defined in the role for the appropriate level.

DATA INPUT

Master data

A set of data items which are required to be provided once and used repetitively will be entered as Master Data items. They Include Plants, Department, Cells, Equipments, Products, Losses descriptions and Vendors etc

The data entry by users

The special data entry screens will be developed to enter data required for generating MIS. These specific data entry screens and role based feature access model enables us to capture data’s at the point of data generation.

Input From ERP

Where ever the data is available in ERP software, it will be used in this operations MIS system through appropriate data transfer utility using either MS Excel format or text file format.

NETWORK COMPATIBILITY

Proposed system will be a web application and can be accessed from any of the plants with appropriate accessibility and security controls like

  1. Complete data and features accessible to SUPERUSER or ADMINISTARTOR of the system
  2. All plant data will be accessible to corporate level user
  3. Plant data for all fractals will be available to Plant level users
  4. Fractel data will be available to fractel level user

NUMBER OF USERS

There will be no restriction on number of users across all plants.

TECHNOLOGY

Application will be developed using MS Dot Net technology as a web application with back end database in MS SQL Server.

INSTALLATION and OPERATION

  1. Support for Multi plant environment operation
  2. System accessible from all locations with appropriate accessibility and security features.

Additional BUSINESS RESULTS – KEY PEFORMANCE INDICATORS