GITNUX MARKETDATA REPORT 2023
Must-Know Operational Excellence Metrics
Highlights: The Most Important Operational Excellence Metrics
- 2. First-pass yield (FPY)
- 3. Downtime
- 4. Takt time
- 5. Cycle time
- 6. Lead time
- 7. Backlog
- 8. Inventory turnover
- 9. Work-in-Progress (WIP) inventory
- 10. On-time delivery
- 11. Six-sigma level
- 12. Scrap rate
- 13. Throughput
- 14. Utilization
- 15. Customer complaints
- 16. Return on Investment (ROI)
- 17. Cost of poor quality (COPQ)
Table of Contents
Operational Excellence Metrics: Our Guide
In our recent study, we delve into the critical metrics that measure Operational Excellence, vital for all businesses aiming for long-term success and sustainability. This blog post unpacks the data and demonstrates why understanding these key performance indicators is essential for consistent growth and enhanced productivity. Learn how to leverage these metrics for your business, drive operational improvements and excel in today’s competitive environment.
Overall Equipment Effectiveness
Measures the efficiency and effectiveness of a manufacturing operation by combining equipment availability, performance, and product quality.
Measures the percentage of units that are produced without defects or rework, indicating the effectiveness of production processes.
Measures the time a machine or system is unavailable for production due to failures, maintenance, or other issues, which impacts productivity and capacity utilization.
Represents the available production time divided by customer demand, indicating the maximum allowable time to produce a product to meet customer requirements.
Represents the total elapsed time between the start and completion of a process or task, which indicates manufacturing process efficiency.
Measures the time between a customer’s order placement and the delivery of the finished product, reflecting supply chain and production efficiency.
Represents the number of customer orders received but not yet fulfilled, indicating the workload and capacity utilization of a production system.
Measures the number of times inventory is sold or used ina specific period, reflecting inventory management and capital tied up in inventory.
Work-In-Progress (WIP) Inventory
Represents the number of items currently being processed in the production system, indicating the efficiency of production and inventory management.
Measures the percentage of orders delivered within the agreed- upon timeframe, highlighting the effectiveness of production, logistics, and customer service.
A process performance measure that indicates the number of defects per million opportunities, reflecting a focus on defect reduction and process improvement.
Measures the percentage of materials wasted during the production process due to defects, rework, or other issues, indicating the effectiveness of manufacturing.
Represents the number of completed items or tasks in a production process in a given time period, measuring production efficiency and capacity utilization.
Measures the percentage of equipment, resources, or labor actively engaged in production compared to their maximum capacity, reflecting production system efficiency.
Represents the number of customer-reported issues or defects, indicating product quality and customer service effectiveness.
Frequently Asked Questions
What are Operational Excellence Metrics?
What are some common Operational Excellence Metrics used by businesses?
How do Operational Excellence Metrics help improve business performance?
What are the key components of Overall Equipment Effectiveness (OEE)?
How can organizations ensure the successful implementation of Operational Excellence Metrics?
How we write these articles
We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.