Research
Manufacturers Alliance recently conducted a survey of business unit and corporate leaders to understand the different key performance indicators (KPIs) they track throughout their organization. Results show that the number of KPIs tracked at each level can vary widely, ranging from 1 up to 85, however upon further investigation, it appears most levels are heavily reliant on 5-15 metrics. These KPIs may focus on metrics such as machine hours, labor hours, efficiency, production rates, safety incidents, quality, on-time delivery, financial metrics, and more.
KPIs shared with the board of trustees usually includes 5 or 6 highlights, but some respondents include up to 30 high-level business performance and financial statements. At the line/cell level, KPIs are often focused on specific production metrics, while at the site level, KPIs may include safety, efficiency, quality, on-time delivery, and financial metrics. The focus at the business unit level is often on overall cost, gross margin, labor turnover, and growth, while at the corporate level, organizations tend to emphasize gross margins, efficiency, revenue, profitability, and financial indicators.
A few key findings from our report:
- 11 of the top 13 metrics tracked at the line level are production metrics. The most prevalent metrics are around production downtime, cycle time, yield, and production volume.
- At the shift level, only 7 metrics are tracked by at least half of the respondents. Labor hours, production volume, and production downtime are the most tracked.
- At the site level, there are over 60 metrics (out of 96) that are tracked by at least half the respondents. The top 15 are tracked by over 85% of the companies. Labor and compliance KPIs are the top metrics being tracked. Production costs and water consumption also stand out.
- BU level - Not only does the NPS score make its debut as a top metric, but it is the top metric, with 88% of companies tracking it at the BU level. Overall, labor and profitability KPIs become top metrics at the BU level.
- KPIs related to labor and shop floor incidents are the most tracked across the board at the corporate level. On-time delivery is the most commonly tracked customer service KPI at 53%.
- Net operating profit is by far the most common KPI shared with the board. There is a much more broad spread of KPIs shared at this level vs. throughout the rest of the organization.
Top 6 Metrics Shared with the Board
Top 5 Metrics Tracked at the Corporate Level
Top 5 Metrics Tracked at the Business Unit Level
For more details on the various KPIs tracked at each level, members can login to view the full report.
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