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Before starting with an in-depth look at what performance management is all about, let’s first get a clear picture as to what performance management is. It is the association and the extent of work in an organisation to acquire the best-ever results. This is an approach wherein critical performance targets are set and the progression towards it is measured, thereby, helping manufacturing companies to achieve set monthly/yearly targets. It is also to be noted that performance management is often taken into account at every level of the business.
Well, the simple straight answer to “why performance management is required” or “what is the need of performance management” is to get to know the real-time activity. Putting it simply, it helps in giving an insight into the strategies that are not meeting their goals and at the same time, to correct them before they impact the company negatively. Manufacturing performance management also launches alarms and exclusion reporting to let us make quick reactions to minute-by-minute aberrations from goals.
In manufacturing, KPIs are taken into account for keeping a track of the production at a glance. Some of the common KPIs our experts keep in mind while providing manufacturing performance management report writing help are: - shop floor KPIs such as due dates of the operation, the usage of manufacturing material, scrap cost as well as the cost for re-work, percentage of the operator efficiency, labour rate variance, etc.
There are also quality KPIs that need to be kept in mind while making the report such as lead time reduction, reduction of returned materials, the corrective actions taken in response to customer issues, compliance with the government regulations and so on. In addition to these, there is maintenance KPIs as well, which are inclusive of mean time between failures also known as MTBF, availability of the critical machine, the budget of the maintenance department as opposed to the actual budget, inventory maintenance et cetera.
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