5 Tips for Using KPIs in Manufacturing - ERP Cloud Blog
 
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5 Tips for Using KPIs in Manufacturing


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Free Whitepaper: Key Performance Indicators (KPIs) in Manufacturing

The goal of Key Performance Indicators (KPIs) for manufacturers is to take all the data collected from the manufacturing process and translate it into valuable intelligence. KPIs empower managers to make smart decisions and find areas to be more productive. Also, KPIs help employees know how they are measured and where there are opportunities to improve productivity. In the age of big data and Business Intelligence (BI), we rely on integrated ERP systems help translate data into usable KPIs to measure all areas of the business.KPIs in ManufacturingAll manufacturers can benefit from managing KPIs including custom manufacturing, high-volume consumer goods production, discrete, and batch production companies. Successful manufacturers understand it’s important to have the right data at your fingertips.

So how do you prioritize what data to track and the frequency? Today, we'll review some of the challenges manufacturers face in choosing the right metrics to look at and explore strategies to make tracking easier for your people.

Download this whitepaper Key Performance Indicators (KPIs) That Matter in Manufacturing to learn how to prioritize your KPI measurements.

Manufacturers Using KPIs

Modern manufacturers benefit from remotely connected sensors and smart devices, commonly referred to as the Industrial Internet of Things (IIoT). The challenge is with all the data that provides you with visibility and control, it also multiplies the information overload problem.

In our previous blog, HOW MID-SIZED MANUFACTURERS CAN OUTMANEUVER THEIR COMPETITION, we reviewed the challenges manufacturers face with leveraging current and emerging technology to outperform the competition. For more information, download this must-read guide as your roadmap Technology and the Mid-Sized Manufacturer In this blog, let’s turn our attention to leveraging technology by tracking and adopting KPIs.

Classifying Manufacturing KPIs

Measuring and prioritizing KPIs helps you gain insight and visibility into your business. However, you do need to know there are different classifications of KPIs, such as historical and predictive. So how can you focus on what matters? Ask yourself if you have an accurate picture of the following:

1. Plan vs. actual hours and cost
2. Utilization and capacity
3. Scheduled production

5 Manufacturing KPI Questions to Help Get You Started

If you would like to learn more KPIs for manufacturers, a new whitepaper from Acumatica will help you get started. KPIs help you track the right data. As your firm grows, you’ll see new sources of data, bigger pools of data and trying to combine all of this to see the big picture -especially if you are trying to manage this data using disconnected, manual processes.

1. What can two main categories of KPIs tell you about your business?
2. Which KPIs matter most for manufacturers?
3. What’s the ideal number of KPIs to watch on a daily basis?
4. Which technology is essential for monitoring and managing your KPIs?
5. How to ensure your KPIs are keeping pace with changes in your business?

KPIs for Manufacturing

The Clients First Difference 

At Clients First Business Solutions, we understand the needs and concerns of manufacturers like you. Acumatica’s Manufacturing Cloud ERP is a powerful set of modules that employs comprehensive functionality for make-to-stock, make-to-order, engineer-to-order, project-centric, job shop,  and repetitive manufacturing. Clients First is an Acumatica Gold Certified Partner and our team implemented manufacturing business software for over 20 years. We bring manufacturing experience to our customers through Acumatica’s modern platform.

We're excited to share a new guide from our friends at Acumatica designed to help you understand what you need to track and how to track it.

Click here to download Key Performance Indicators for Manufacturers.

Contact us at 800-331-8382 or email info@cfbs-us.com. Clients First located in Dallas, Texas and Minneapolis, Minnesota serve companies worldwide.

Another version of this blog was previously on Clients First Blog - Wed, May 08, 2019 - WHAT ARE THE MOST IMPORTANT KPIS FOR MANUFACTURING FIRMS?

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