Learning Goal: Identify and interpret the KPIs that measure factory efficiency, quality, and delivery.

KPIs turn factory floor activity into actionable data. Common production KPIs include:

  • Efficiency % = (Earned Standard Minutes / Minutes Worked) × 100. Measures how well operators achieve standard times.
  • Productivity = Output / Input (e.g., pieces per operator per hour).
  • On‑time Delivery % = Orders shipped on or before the deadline.
  • Defect Rate (DHU) = Defects per Hundred Units. Often broken down by major and minor.
  • WIP Level (Work‑in‑Process): Number of units on the floor unfinished. High WIP indicates imbalances.
  • Absenteeism & Turnover – affects planning.

Definitions:

  • Earned Standard Minutes – the total SMV of good garments produced.
  • WIP – semi‑finished garments between operations.

Step‑by‑step Explanation:

  1. Collect daily output and attendance data.
  2. Calculate efficiency: if line produced 1000 mins of SMV and operators worked 1200 mins, efficiency = (1000/1200) × 100 = 83.3%.
  3. Track defect rate per line daily; plot on a chart.
  4. Monitor WIP visually or with data; target minimal WIP.

Best Practices: Display daily efficiency and quality dashboards on the factory floor to create visibility and motivation.

Common Mistakes: Ignoring absenteeism until it derails the schedule. Proactive attendance management is key.

Real Industry Example: A sportswear factory calculates hourly efficiency and adjusts operator allocation mid‑shift if a line falls behind.

Mini Case Study: A factory’s on‑time delivery was 95% but efficiency was low; they were meeting deadlines by overtime, eroding profit. Now they monitor both together.

Practical Activity: Using a sample data set (provided), calculate line efficiency and DHU for a sewing line over one week.

Assignment: Design a one‑page KPI dashboard for a factory manager, selecting the top six metrics and explaining why each matters.

Lesson Summary: KPIs provide the real picture; production management is impossible without measurement.

Key Takeaways:

  • Efficiency, quality, delivery – the golden triangle.
  • Low WIP = smooth flow.
  • Visual dashboards drive improvement.
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