This article is the introduction of a white paper by Red Lion Controls.
Strategic philosophies or practices such as Kaizen, Lean Manufacturing, Six Sigma, Total Quality Management, and Continuous Improvement are used by many organizations to help improve processes, drive productivity and maintain a competitive edge in today’s ever-increasing global economy. Despite varying concepts, each practice uses Key Performance Indicators (KPIs) to assess, analyze and track business manufacturing processes. Even if an organization does not employ formal continuous improvement initiatives, efficiency gains can still be realized by borrowing lessons learned through the visual management techniques of those processes. This white paper discusses three common visual management solutions for displaying KPIs and on messages to drive productivity and improve profitability.
What are Key Performance Indicators (KPIs)?
KPIs are assorted variables that organizations use to assess, analyze and track manufacturing processes. These performance measurements are commonly used to evaluate success in relation to goals and objectives. KPIs tend to vary by organization. A list of seven common production KPIs used on automated plant floors follow: (1) Count (Good or Bad), (2) Reject Ratio, (3) Rate, (4) Target, (5) Takt Time, (6) Overall Equipment Effectiveness (OEE) and (7) Downtime. Each is outlined in Red Lion’s “Seven
What is visual management?
Visual management is the process of displaying critical information such as KPIs that relate specifically to production output, efficiency and quality. By displaying this data on the factory floor, employees have a better sense of production levels and tend to strive for higher performance. Visual management also provides actionable information that allows supervisors to better monitor performance and determine, in real-time, areas that may need improvement. The overall result helps to drive productivity throughout the organization by increasing efficiency, quality and uptime.
Download the full white paper here: http://goo.gl/qs6o7q
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