GITNUX MARKETDATA REPORT 2023
Must-Know Production Planning Kpis [Latest Report]
Highlights: The Most Important Production Planning Kpis
- 1. Production Capacity Utilization
- 2. Cycle Time
- 3. On-time Delivery Rate
- 4. Schedule Attainment
- 5. Work in Process (WIP) Inventory
- 6. Yield Rate
- 7. First Pass Yield
- 8. Scrap Rate
- 9. Equipment Downtime
- 10. Changeover Time
- 11. Labor Productivity
- 13. Production Cost per Unit
- 14. Return on Assets (ROA)
- 15. Backorder Rate
Table of Contents
Production Planning Kpis: Our Guide
Are you in the manufacturing industry and looking to improve your production efficiency? Keeping track of Key Performance Indicators (KPIs) is crucial to achieve this. In our latest report, we delve into the must-know KPIs for Production Planning that can revolutionize your manufacturing processes and output.
Production Capacity Utilization
Measures the extent to which the available production capacity is being used. Higher utilization rates indicate efficient use of resources.
The time it takes to complete a single production cycle, from starting the process to the finished product. Shorter cycle times usually indicate better efficiency.
On-Time Delivery Rate
Indicates the percentage of products that are delivered on or before the committed delivery date. A higher rate shows good planning and supply chain efficiency.
Monitors the percentage of planned production runs that are completed on or before the targeted completion date. Higher rates reflect better adherence to plans.
Work In Process (WIP) Inventory
Measures the amount of unfinished goods during the production process. Lower WIP inventories may indicate smoother production flows and better operation management.
Reflects the percentage of products that pass quality control checks and don’t require rework. A higher yield rate signifies better production quality and lower waste.
First Pass Yield
Evaluates the percentage of products that are manufactured correctly on the first attempt without any rework or scrap.
Monitors the percentage of materials that are wasted or unusable during the production process.
Measures the time equipment is non-operational due to breakdowns or planned maintenance. Shorter downtime can help ensure higher production efficiency and capacity utilization.
The time required to switch a production line from one product type to another. Reducing changeover times can help increase flexibility and productivity.
Assesses the output produced per labor hour. Higher labor productivity indicates more efficient use of human resources and better allocation of tasks.
Overall Equipment Effectiveness
A measure of how well a manufacturing operation is utilized, combining availability, performance, and quality. Higher OEE values indicate higher production efficiency and resource use.
Production Cost Per Unit
Calculates the cost of manufacturing a single unit of product, including material, labor, and overhead costs..
Return On Assets
Compares a company’s net income to its assets to determine how effectively assets are being used to generate profit.
Indicates the percentage of unfulfilled orders due to stockouts or production delays. Lower backorder rates typically reflect better production planning and inventory management.
Frequently Asked Questions
What are the essential Production Planning KPIs that a manufacturing company should track?
How is the Overall Equipment Effectiveness (OEE) KPI calculated, and why is it important?
Why is Schedule Adherence significant as a Production Planning KPI?
How does measuring Production Yield help in improving a manufacturing process?
How can monitoring Labor Productivity help a company optimize its production processes?
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.