What are the key performance indicators are based on measuring the efficiency of the production process?

1- productivity

2- scrap percentage

3- WIP

yield is the most important KPI fro measure the efficiency of the production process

Mr. Hamid the production efficiency could be measured by various methods such as;

1-      You could assign to target(# of unit produced per day or per shift)

2-      If your shift  or production unit is being run on certain efficiency level like on70% then you could assign them next  quarter target to achieve73 or75 or with mutual consultation with operation manager.

3-      You could also set certain target to reduce the wastage % per shift or month.

4-      In case of new installation or any expansion support the plant engineering department.

The head of department must carefully select the KPIs and assign them to concern team leader and it’s better to review the achievement at the end of the month or quarter. We could trickle down your query if you need further more. Thanks.

1 - In discrete manufacturing MRP in place with no shortage or material over stock.

2 - In process manufacturing Lean and JIT applied effectively.

3 - Work centers bottleneck leveled in MPS to keep WIP at its minimum level.

4 - Kaizen applied to show yield level improvement.

5 - FG delivered on time.

OEE is a "best practices" way to monitor and improve the effectiveness of your manufacturing processes (i.e. machines, manufacturing cells, assembly lines).OEE is simple and practical. It takes the most common and important sources of manufacturing productivity loss, places them into three primary categories and distills them into metrics that provide an excellent gauge for measuring where you are - and how you can improve!OEE is frequently used as a key metric in TPM (Total Productive Maintenance) and Lean Manufacturing programs and gives you a consistent way to measure the effectiveness of TPM and other initiatives by providing an overall framework for measuring production efficiency.

OEE = Availability x Performance x Quality

Availability = Operating Time / Planned Production Time

Performance = Ideal Cycle Time / (Operating Time / Total Pieces)

Or

Performance = (Total Pieces / Operating Time) / Ideal Run Rate

Quality = Good Pieces / Total Pieces