In the manufacturing industry, we juggle with a plethora of data that can make or break the company, hence the need of understanding and using them to their full potential. Real-time, automated data monitoring becomes a necessity. On this first manufacturing dashboard example, we will look at the overall production capacity of a business. Having at your fingertip all the important KPIs related to the production of your company provides a great overview that helps optimizing it. Inefficiency is the nemesis of any manufacturing process, so you must stay alert and track any potential issue, spot any hidden trends that could harm the processes.
Knowing your overall Production Volume is a first thing. That way, you have an idea of what your active machines are dealing with on a daily, weekly, monthly or annual basis. This is a good thing to compare the production to previous similar periods and spot the differences, analyze them and try to understand the why behind it: a lack of maintenance leading to breakdowns, an under-equipment leading to under-production, an overloaded staff that make more mistakes? This is the starting point of any further analysis. Parallelizing that production volume to the Quantity Ordered is another interesting move: you can see if you manage to keep up with the flow, or if your business is totally overflowed and has a hard time facing that demand. That will directly impact your overall sales revenue generated.
When it comes to production, you need to know about your equipment. What they produce over time will let you know the importance of each of them, so that you can take extra-care of the most productive ones. But let’s not be mistaken: every machine needs maintenance and care, even if it contributes to a small percentage of your production. In assessing this, you will also be aware of your assets, and that will help you in evaluating later the Return on Asset.
Finally, in a similar vein as for the retail industry, manufacturing dashboards like this one should look into the returns they receive. Measuring the rate of returns you have is a must-do, to evaluate how performant your business is at delivering what it is expected to. The idea is, of course, to maintain it as low as possible: you can set a target you wish to achieve, and if you are above, take adequate measures. Once this is done, delve into the Reasons of Return: broken item, no particular reason, or on the contrary any other. You need to know what pushed the client to return your goods, so as to tackle the problem at its source, and avoid seeing the situation repeated over and over.
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When you have evaluated the production of your factories, the next step is to assess their quality. Producing in quantity is good, but only if the quality follows: otherwise, you will never have returning customers, your brand image will be harmed and demand won’t come in anymore. Monitoring the quality of your production is then another major concern. On this second manufacturing dashboard template, four metrics are displayed. The first one is directly related to the last KPI analyzed in our previous manufacturing dashboard, tackling the returns. As stated, measuring the Rate of Return is crucial to gauge the performance of your supply chain when it comes to producing an item without any defect, from the deal to the delivery. Measuring this ratio had the objective to reduce it as much as possible, by improving your production processes. To reduce it, you will need to find the reasons, that might be during production. Try find the root cause, where and when it happened in the process - or afterwards - a return due to the client. Along with this KPI, comes a similar one that must have the opposite attitude: being as high as possible. Indeed, Right First Time is the percentage that will help you win extra points with your clients: not only will they be satisfied to have what they want directly, but that will also give them no reason to complain about your services. Besides, you will avoid useless expenses as returns are always costly to achieve back and re-process.
Second aspect of quality that is assessed on this manufacturing dashboard example are the defects. When an item is flawed, it is a useless item that will bring you no value as you will not be able to sell it -provided you implement certain price policies on defective, but still usable, products. In any case, the potential revenue generated by a defective item is not profitable. Make sure then to evaluate how many of them are produced each month and so as to monitor them. Just like for the returns, you should also find a reason for these defects: a packaging problem, a non-compliance to product spec or non-compliance in manufacture, an under fill, or any other thing you can witness. With this assessment, you will know what to deal with first, and where to allocate more resources that will ensure the right production quality and go the extra mile to avoid future defects.
With such manufacturing dashboards, you can visualize the right analytics at the right moment, and take action from there. It offers you flexibility and will help you remain competitive and informed in such a global marketplace with so many challenges at stake for your business.
In today’s economy, the manufacturing industry is highly challenged at every level: production must run as efficiently as possible, with the highest quality as possible while at the same time, minimizing the costs. With a manufacturing dashboard template gathering your most important metrics related to cost management, you can take a deep breath and relax - all you need to monitor is here.
In manufacturing, you often are evolving in an asset-heavy industry, which means that knowing what are your assets and what are their value is key. Measuring the Asset Turnover ratio will then provide you great insights, as it represents the revenue of your sales relatively to the value of your assets; that it to say that it helps you assessing if your assets are generating revenue and to which extent. In general, the higher this ratio, the better it is for your business as it means that you create more value for each dollar of asset you have. To have an idea of your efficiency in that case, you can compare your ratio to other industry-like businesses. Similar to this metric is the Return on Asset, that measures the capacity of your company to generate profit for each dollar spent on asset. It distinguishes itself from the previous KPI because it focuses on profit by using the net income for its formula.
When talking about costs in manufacturing, maintenance makes up for an important part. It is an important aspect to take into account, because it deals with the core of your business. At first, Maintenance Costs can make up for a big part of your budget; but the idea is to lower them in the long run. They will never disappear and need to always have a place in your expenses, but a good maintenance is implementing the adequate preventive measures to avoid future useless expenses.
A final metric on this Manufacturing Costs Management dashboard is the Unit Costs, and lets you know how much money is required to produce one item so that you can set the appropriate price to make profit on this item. The evolution over time should be a decrease, as generally practice will grow while equipment investments will decrease.
Collecting data and working with it in your manufacturing company is a great advantage you have over competitors, but it is just the beginning of your work. Businesses are more and more globalized and resources and functions are scattered, needing smart data analytics in a collaborative environment. Leveraging these analytics thanks to customized manufacturing dashboards is the next step you want to take to improve processes, gain unique insights and boost your performance.
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