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MANUFACTURING SECTOR

MEASUREMENTS

  • Measurement in the Manufacturing sector:  The assembling area is one in which there is a noteworthy degree for execution estimation, as most parts of the creation cycle can be precisely estimated in quantitative terms.

  •  Not right first time (NRFT) - this is a measure of the rate of defective units being produced. The higher it goes, the greater the waste of resources and the greater the risk that it will inconvenience customers.

  •  Stock turns (ST) - this gauges the number of times a business sells and replaces its inventory. Higher stock turn rates show that a business is operating efficiently and not tying up resources in slow-moving inventory.

  • Overall equipment effectiveness (OEE) - this is a way of measuring whether you’re making the most of a piece of machinery. It combines three elements - the time we can use the machine, the rate at which it is operated, and the proportion of its output that is defective.

  •  People productivity (PP) - this measures the number of worker hours taken to produce each unit of output. However, PP also distinguishes between valuable and wasteful production - this to ensure that productivity figures aren’t skewed by the overproduction of units for which there’s no customer demand.

  •  Floor space utilization (FSU) - this measures the level of revenue generated per square meter of factory floor space. It reflects how efficient a business is at minimizing its fixed costs.

  • Delivery schedule achievement (DSA) - this measures your success at delivering the goods your customers have ordered to the schedule you have promised them.

  •  Value added per person (VAPP) - this measures the amount of value the manufacturing process adds to raw materials and compares it to the number of people involved. Like PP above, it is a measure of employee productivity.

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