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Making the Most of KPIs for Manufacturers

Making the Most of KPIs for Manufacturers

Acumatica KPIs for Manufacturers

Key Performance Indicator (KPI) is a type of performance measurement used to evaluate the success of an organization's activity and the present state of the business.  The goal of KPIs for manufacturers is to gather data from the entire manufacturing process and use it to devise an intelligent plan for the future. Often success is noted in goals reached or progress made. Choosing the right KPIs will depend on what your organization views as most important (e.g., zero defects, 5-star customer ratings, etc.) Intelligent use of KPIs can direct business owners to areas of potential improvement in processes or resources.

KPIs allow managers to identify areas or employees that could be more productive. KPIs also allow employees to understand how they are evaluated and where there may be opportunities for advancement. KPIs are not predictive; they are only measurements of past actions. But the valuable information they provide can help business owners evaluate and set policies and procedures for success.

To use KPIs successfully, it's important to ask the right questions.

All manufacturers can benefit from managing KPIs, but depending on their unique processes, the data they want to measure may vary. So how do you prioritize what data to track and when?

With today's advanced technology, manufacturers can benefit from remotely connected sensors integrated with their smart devices. There is so much data available that it can be a challenge to choose and make use of just what you need. Wisely choosing KPIs that are important to the running of your business can be a game-changer in terms of productivity.

KPIs can be either historical or predictive, quantitative or qualitative. Classifying Manufacturing KPIs helps you gain insight and visibility into your business. But the different classifications of KPI will tell you different things.

Focus on what matters.

Ask yourself if you have an accurate picture of:

  • Your goals
  • Your utilization and capacity
  • Your production schedule.

Now ask what information (KPIs) you would need to have to help you get an accurate picture. 

5 Manufacturing KPI Questions to Help Get You Started

If you are new to KPIs for manufacturers, Acumatica has published a whitepaper entitled Key Performance Indicators for Manufacturing, to help you get started.

KPIs for Manufacturing

 In the white paper, you'll learn how KPIs track data and how you can separate the useful data from the noise. Learn how to best leverage your ERP software solution to make it work for your business.

  1. What two main categories of KPIs can tell you about your business
  2. Which KPIs work best for manufacturers
  3. What is the ideal number of KPIs to monitor daily
  4. What is the best technology allowing you to monitor and manage your KPIs
  5. How you can make sure your KPIs are keeping pace with your changing business

At Clients First Business Solutions, we understand the needs and concerns of manufacturers, and we recommend Acumatica's Manufacturing Cloud ERP.  Acumatica works with a comprehensive set of tools 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 specializing in business software for over two decades. Acumatica's modern platform allows us to bring added value to our manufacturing clients.

We're excited to offer Acumatica's white paper designed to help you understand what you need to track and how to track it.

Download Key Performance Indicators for Manufacturers.

If you'd like to learn more, contact our Acumatica experts at Clients First Business Solutions.

By Clients First Business Solutions, www.cfbs-us.com

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