Time Delivery: The Most Important Metrics In Operations

Companies use metrics in operations and manufacturing to measured how effective they are operating. There are many different kinds of metrics that a company can use that will be the most favorable to the operation manager. One is a management metrics which are typically stable and do not change much which allows items in organizational performance to be measured over long time frames. Next is operational metrics that can change based upon the impact expected or other changes that may happen at the closest point to the operations. Fore the most the management metrics are at a high level and can be found or pulled from the operational metrics. One of the most important metrics for an operations managers is on time Delivery. This metric is the …show more content…
Quality is a huge factor in selling goods for a profit and keeping a customer base. If the compaines don’t have a way to measured quality the OM will not beable to identify what type of finial products he is producing and whether it is of the highest quality. Several of the metrics for measuring quality can be items such as returns or rejects that fail production. Individuals would measure how many times customers reject and return products based on receipts of a bad or out of specification product. In process metrics for quality would be the yield, or how many products are passing or failing the quality requirements or not meeting the specifications needed for good or great quality. Efficiency can be the difference in how a product is manufactured. An OM will need metrics on improving efficiency. They will need to measure the throughput of the product or how many units are making it thru the process in a certain amount of time. This can greatly help in finding bottlenecks and will help in improving how efficient the manufacturing process is working. Inventory metrics can help in finding out what items are stocked, how much they are and what impact they have on …show more content…
The last few that I will write about all can show whether a company will prosper or go under. They all are metrics on how to reduce costs and increase profitability. Without profit, there is no funds being generated. The first one is the metric on the net operating profit. This is the measurement of the profitability as a whole for all who have some sort of invested cause in the company. This shows, the investors, the stakeholders, as well as the debt holders exactly where the company stands with financial profitability. Another metric will be the total manufacturing cost is per unit excluding materials. This is a measurement of all the costs that go into the production or manufacturing of a given end item or product, that can usually and normally be controlled. This will show what exactly it cost to make the product thru the manufacturing process. One metric that I think a lot of companies use to show if less or manpower is needed or can be used, is the productivity in revenue per employee.