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Rethinking Manufacturing Performance

Rethinking Manufacturing Performance - Achieving meaningful production and business performance improvements.

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Rethinking Manufacturing Performance | rethinkmfg.net Reviews
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Rethinking Manufacturing Performance - Achieving meaningful production and business performance improvements.
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2 performance
3 throughput
4 cost
5 accounting
6 efficiency
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9 lean
10 theory
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Rethinking Manufacturing Performance | rethinkmfg.net Reviews

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Rethinking Manufacturing Performance - Achieving meaningful production and business performance improvements.

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1

Rethinking Manufacturing Performance

http://www.rethinkmfg.net/connect.htm

Connecting manufacturing performance to business performance. The reason any commercial company is in business, is to make money. That's the single naked truth for all businesses - it may seem like a crass statement, but making money is what it boils down to in the end. So, if the goal of any business is to make money, we should connect all primary performance measures to making money. There are 3 key Financial Performance measures that are most connected to how and whether business makes money:. There i...

2

Rethinking Manufacturing Performance

http://www.rethinkmfg.net/mfgfin.htm

Correlating manufacturing and financial performance. A key aspect of the new performance measures is how manufacturing is more directly connected to financial performance and vice versa. The illustrative example in this section best illustrates this tight connection and how manufacturing performance improvements are reflected in financial performance. Assume a manufacturing company with the following baseline numbers:. Raquo; Revenues: $50m. Raquo; Direct Materials: $20m (40% of Throughput). The most int...

3

Rethinking Manufacturing Performance

http://www.rethinkmfg.net/recommend.htm

Recommendations for practical manufacturing performance measurement and management. It is critical that everyone in the company understands what constitutes Throughput as per the previous definition and explanation. Measuring Throughput from a Production Performance perspective requires 3 data points per measurement period:. Raquo; Shipments against Customer Demands (Sales) - this is Throughput. More granularity of the above data will be needed by adding production line and product family dimensions.

4

Rethinking Manufacturing Performance

http://www.rethinkmfg.net/traditional.htm

Traditional Performance Measures - What they do and why they don't improve performance. As previously mentioned the three primary traditional performance measures most companies and practitioners use are Utilization, Efficiency and Productivity. I'll do a quick review of what each measure provides and discuss the limitations and potential problems related to these measures. Let's examine an example closer to production realities - assume 3 machines with Utilization Rates of:. If you always measure relati...

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How manufacturers can achieve meaningful production and business performance improvements. Michael I. Frichol, CPIM. Do traditional manufacturing performance measures really help companies improve performance? Do these traditional performance measures really support the production and financial goals of a manufacturing company or do they obfuscate the fundamental problems that obstruct meaningful production performance improvements? Everyone is familiar with the traditional manufacturing performance meas...

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How manufacturers can achieve meaningful production and business performance improvements. Michael I. Frichol, CPIM. Do traditional manufacturing performance measures really help companies improve performance? Do these traditional performance measures really support the production and financial goals of a manufacturing company or do they obfuscate the fundamental problems that obstruct meaningful production performance improvements? Everyone is familiar with the traditional manufacturing performance meas...

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How manufacturers can achieve meaningful production and business performance improvements. Michael I. Frichol, CPIM. Do traditional manufacturing performance measures really help companies improve performance? Do these traditional performance measures really support the production and financial goals of a manufacturing company or do they obfuscate the fundamental problems that obstruct meaningful production performance improvements? Everyone is familiar with the traditional manufacturing performance meas...

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