Manufacturing KPI Software

Manufacturers, both discreet and process, now have a unique advantage they can employ. KPI software specifically designed for them, which takes into account both business metrics as well as production data and can be delivered on-demand.

Performance measurement software provides users with the ability to visualize and analyze KPIs (key performance indicators). It delivers the power of visualization based on actual metrics directly into the hands of decision makers.

By combining business, operational and production performance KPIs, even when the data is from disparate systems, users are provided with near real-time, actionable metrics and KPIs for optimal decision making in the manufacturing environment. Users can even be sent alerts via e-mail when KPIs which have been designated as their responsibility reach pre-defined alarm levels.

Most manufacturing organizations are already measuring KPIs, to some extent or another, and realize the importance of doing so. The question then becomes how can they leverage this new technology to further enable the organization to make timelier and better informed decisions? Defining the company strategy, identifying KPIs and assigning ownership of KPIs now become the most difficult parts of this endeavor.

Some of the basic production performance KPIs are listed below:
1. Overall equipment effectiveness
2. Scheduled production
3. Open orders
3. Quality tracking-six sigma
4. WIP
5. Cycle time
6. Material costing, usage
7. Labor usage, costs-direct and indirect
8. Forecasts
9. On-time orders
10. On-time shipping
11. Job, product costing
12. Inventory

These production and operational level metrics provide the basis for higher level KPIs, which provide corporate wide performance measurement. These higher level KPIs can be drilled down to the lower level KPIs which comprise it, to zero in on problem areas.

Higher level KPIs:
1. Overall production efficiency of a department, plant or division
2. Comparative analytics for products, plants, divisions, companies
3. Spend analytics
4. Demand forecasting
5. Supplier trending


One of the biggest advantages of a KPI software system is the ability it gives corporate entities to compare the performance of various products, plants, divisions and even companies within the corporation. The software makes it possible for team members to see where the money makers are as well as the marginal or no profit items. Disparate products or facilities can be standardized within the software to allow for comparison.

KPIs can also be aggregated, and weighted, so that they are accounted for and prioritized within the software system. Data from multiple sources already in place within the corporation, such as ERP, CRM, MES and other databases and spread sheets can be incorporated into the system.

Due to on-demand software’s ability to access this information in near real-time, it can be used to support decisions which improve production performance as well as corporate level strategy planning. There are several impressive advantages to the on demand model of delivery for production performance interfaces. One is that it can be configured, deployed and implemented without a lengthy development and deployment cycle. Cost savings on several levels can also be realized. There is no need for “additional IT infrastructure” with an on demand model for KPI software.

Manufacturing organizations who take advantage of KPI software’s ability to help them fine tune production as well as provide corporate wide performance measurement will be the players who come out ahead.