Category: Manufacturing metrics
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Efficiency vs. Productivity: Metrics that Matter…Until They Don’t
Measure efficiency and productivity against your REAL goal I keep seeing the word efficiency in manufacturing media. As someone who specializes in Constraints Management, this term is particularly vexing. It’s one of those words that I believe should be used with extreme caution. When we look at the organizations of today, words like efficiency and…
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Are Your Manufacturing Metrics Meaningless?
It seems not a week goes by when I don’t hear from someone in manufacturing: “You can’t manage what you can’t measure”. Of course, there is a lot of truth to that statement, but as someone who spends all day, every day, helping manufacturers gather real-time data for better operational performance, I believe the statement…
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Why Demand-Driven Manufacturing is Focused on Metrics for Action
Driving Continuous Improvement. In Demand-Driven Manufacturing, there is only one measurement that is important to drive performance: Throughput. There are two subordinate measurements: Inventory and Operating Expense. These three measurements cover the gambit of what needs to be measured because they are directly related to customer orders, cash captured inside the organization, and the cash…
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Aligning Metrics to Strategy
Measuring your strategic goals against their value and the time, money and attention they need When we began our metrics discussion, we talked about how behaviors are too often dictated by metrics—and whether or not these behaviors actually “move the needle” for sustainable supply chain improvements. Mark Davidson’s blog about aligning metrics to larger goals…