Glossary

KPI stands for Key Performance Indicator, and they are meant to do just as the name suggests – to indicate performance levels. KPIs are quantifiable metrics that offer insights into business performance and are important for manufacturers to measure specific metrics helping them focus on what’s most important. KPIs are used to monitor the performance of a manufacturing facility and to compare several factories One commonly used manufacturing KPI is OEE (Overall Equipment Efficiency) which is measured by calculating the factory’s performance, availability, and quality. KPIs let manufacturers know whether they are on course for success, if they are growing as they expect to, and where potential issues may arise. Having a KPI dashboard readily available can make company goals and priorities stay in focus and ensure the organization is moving forward as a whole. To gain greater clarity on performance from multiple angles, each organization should ideally monitor several KPIs from various fields related to capacity, efficiency, quality and agility to ensure a holistic image of the factory performance is obtained.