In today's manufacturing environment, data is king. By tracking the right data points, manufacturers gain valuable insights into their operations to make better decisions that can lead to increased productivity, efficiency, and profitability.
Based on my research and experience here are 5 most important data points to track in manufacturing:
Machine uptime and downtime. This data will tell you how much time your machines are actually running and how much time they're not. This information can help you identify areas where you can improve efficiency and reduce costs. Most ERP systems have a maintenance module built-in to their system. Maintenance modules help with preventive maintenance that reduces downtime, increases machinery productivity, and lower machine costs when production lines do break down.
Production volume. This data will tell you how many units you produce each day, week, month, or year. This information can help you track your progress toward your production goals and identify areas where you can increase output.
Product quality. This data will tell you how many defective products you're producing. This information is essential for ensuring that your products meet your quality standards and that you're not wasting resources on products that will have to be scrapped. QA departments are the key to measuring product quality. With a streamlined QA process that is product-specific organizations can ensure the quality of their products meets their standards, and when they fall short.
Labor productivity. This data will tell you how much output your employees produce each hour. This information can help you identify areas where you can improve employee efficiency and reduce costs.
Cost of goods sold. This data will tell you how much it costs to produce each unit of your product. This information is essential for setting your prices and determining your profitability.
By tracking these 5 data points, manufacturers can gain a comprehensive understanding of their operations and make better decisions that can lead to improved performance.
If you're looking to improve your manufacturing operations, start by tracking the data points listed above. This information will give you the insights you need to make better decisions and drive continuous improvement.
It all starts with a good ERP system that can evolve and adapt as your dynamic operations continue to change. IFS Applications, and their state-of-the-art cloud-based suite of applications help manufacturers all over the globe track the right data.
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