Total Manufacturing Cost Formula: Metrics that Matter

QAD

What are Total Manufacturing Costs? Your total manufacturing costs are essentially an expense analysis that calculates how each of your company’s departments contributed to producing a finalized product. Rather, total manufacturing costs include all related costs accrued in the period.

Metrics that Matter: Inventory Effectiveness

QAD

The effective use of a manufacturer’s inventory investment is an important determinant of the company’s success. Excess and obsolete inventory is a drain on resources, as is excessive safety stock. Managing an Inventory Investment. Inventory effectiveness measures the process that delivers the right part to the right place at the right time, while minimizing investment and meeting customer requirements. Using Metrics to Measure the Health of the Business.

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Want to Succeed with IBP? Mind Your Metrics

Logility

This means routinely bringing together the C-suite, finance, supply chain, manufacturing, sales and marketing teams so everyone is seeing, working from and agreeing to an aligned plan that achieves optimal business outcomes.

My Take: Metrics that Matter

Supply Chain Shaman

Tomorrow, I have a call with a manufacturing company to answer the question, “ What is the most important concept in the book?” While Joe is trying to balance the feedback from Filipe and Frank, he is often asked to change his metric targets by his CFO named Lou. After two years of research, I think that we throw the supply chain out of balance and limit its potential through the use of traditional and functional metrics. Achieving Balance in Metrics.

Modern Metrics

synchrono

The two areas of my working world are embracing technology like never before: Marketing and manufacturing. While digital content and automated technologies gave birth to the modern marketer, a more real-time, digitally connected enterprise is driving modern manufacturing strategies like the Factory of the Future, Smart Manufacturing and Industry 4.0 – all of which are grounded in Demand-Driven Manufacturing methods. The post Modern Metrics appeared first on Synchrono.

Supply Chain Dashboards – Key Metrics For Manufacturers

Silvon Software

As I mentioned in my previous post, Sales Dashboards – 16 Metrics for Manufacturers , a strategy for measuring business performance should also incorporate metrics that focus on the supply chain and other operational areas of the enterprise.

The Most Important Distribution Center Metrics to Track and Understand

GlobalTranz

Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. Additionally, the use of metrics fosters positive relationships with coworkers and adherence to rulesets and best practices for the respective third-party logistics provider (3PL). What Distribution Center Metrics Need Tracking? What distribution center metrics are you tracking or are not listed here?

Manufacturing Metrics that Actually Matter (The Ones We Rely On)

synchrono

LNS Research blogger Mark Davidson said, “When it comes to metrics, it’s often said that what gets measured gets done.”. I have found this to be true when working with many different manufacturers. Mark also writes: “Metrics that have the attention of business and manufacturing leaders tend to be those that get measured and improved upon by their employee teams.”. Metrics for Action. These Metrics for Action are not intended for overall business analysis.

Time for a Supply Chain Metrics Cleaning

Logility

Ask yourself, “Are your supply chain metrics bogging you down?” ” To manage a supply chain containing complex dependencies between teams, departments and partner companies across international boundaries requires a rich set of metrics. However, companies often have too many independent metrics that can cause conflicts amongst competing supply chain functions. Functionally isolated metrics lead to sub-optimized supply chain performance.

Post Pandemic Inventory Priorities: High Turnover or Extra Inventory?

Supply Chain Game Changer

Most of the pre-pandemic Inventory Management strategies were centred around improving inventory turnover, keeping inventory levels as low as possible, and reducing the amount of cash tied up in inventory. What should our post pandemic inventory priorities be?

Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.

Kinaxis

Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #6 Not effectively managing inventory. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric. Why do companies focus on reducing a specific metric?

3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance

GlobalTranz

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. Inventory measurement is critical and it is money after all in that it took a capital expense to procure. The goal is to keep inventory levels at a minimum to meet customer needs. Review Inventory turns and Return on Assets. For clarity, in measuring supply chain performance, we should be focusing on: inventory, working capital, and time.

Efficiency vs. Productivity: Metrics that Matter…Until They Don’t

synchrono

I keep seeing the word efficiency in the manufacturing media. When we look at the organizations of today, words like efficiency and productivity get thrown around with little understanding of what is required to improve one of these measurements (metrics). Let’s discuss why an efficiency metric is usually not the right metric and what a Lean manufacturing expert does when measuring true value in the supply chain.

Supply Chain Metrics - Gaining Visibility in a Data-rich World

Logility

The second part of Drucker’s quote, “if you can't measure it, you can't improve it,” really brings home the importance of having the right set of metrics. In the field of supply chain management, we have created an abundance of metrics and key performance indicators (KPIs). For the past 30 years I have been involved with multiple efforts to build a set of supply chain metrics and have learned a few things along the way.

Gaining Clarity on Inventory Effectiveness

Supply Chain Shaman

I was moving from a position where I led a manufacturing operation to being a part of a team to design supply chain software to improve planning decisions. I was moving from the world of manufacturing to a new world of software. The technology world moves at a quicker pace than the world of manufacturing and distribution. The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study.

Metrics that Matter: Customer Service

QAD

Inventory accuracy and minimizing stockouts are very important to customer satisfaction, but a few other metrics also impact the ability to meet customer expectations. Companies can use these metrics to help ensure they are doing everything possible to satisfy their customers at a manageable and sustainable cost. It’s easy to meet delivery expectations if you carry excess inventory, but it’s an expensive and impractical solution. Choosing Metrics.

Can Manufacturers be Both Lean and Resilient?

Logistics Viewpoints

Lean speaks of the seven wastes: overproduction, unnecessary transportation, inventory, motion, defects, over processing, and waiting. Since then, manufacturers around the world have embraced lean. This practice, known as vendor managed inventory , is an excellent example of lean.

Lean 90

Take Advantage of Digital Manufacturing to Improve Workforce Productivity

DELMIA Quintiq

Much has been done to improve manufacturing efficiency. Supply chains have been optimized; warehouse inventory tracking has reached new levels of precision; production lines can operate with virtually no downtime. As the common linchpin that brings together all manufacturing activities, has this metric improved along with all the investment in new technologies? As a result, this metric is often downplayed or not referenced in the discussion.

3 Ways to Ensure On-Time, In-Full Delivery of Inventory

Logility

Add to that over 2,500 parts from over 200 manufacturers and this became a significant supply chain opportunity. Using Logility, they first aggregated their enterprise inventory and logistics data with two external data feeds. Inventory Thought Leadership

Elephant in the Room: Thoughts on Metrics That Matter in Semiconductor and Hard Disk Drives

Kinaxis

Supply Chain Insights recently published a Metrics That Matter report covering both the Semiconductor and Hard Disk Drive (HDD) industries. Semiconductor is poised to consolidate, which will have huge impact on the metrics. Understanding inventory planning will take on a new dynamic. Of course, like any industry, Semiconductor and HDD manufactures are faced with a set of unique challenges in their space that puts their supply chain at risk. by CJ Wehlage.

Supply chain inventory optimization – Beyond the analytics

Kinaxis

by Alexa Cheater From designing, sourcing and manufacturing, to distribution and consumption, your supply chain is at the heart of your customer satisfaction levels. But the sheer complexity of supply chain networks, and the impact design decisions have on operational performance, makes supply chain inventory management aligning inventory investments with on-time customer delivery and margins a major challenge. Implementing inventory optimization.

Is Inventory Waste or an Asset?

Supply Chain Shaman

We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. We feel so strongly about this that we do not have an inventory planning role.” His feeling was that inventory is an asset to manage. Inventory is both. Inventory management is a complex subject.

Manufacturing Gains From Machine Learning

IQMS

Improving semiconductor manufacturing yields up to 30%, reducing scrap rates, and optimizing fab operations is achievable with machine learning. Bottom line: Machine learning algorithms, applications, and platforms are helping manufacturers find new business models, fine-tune product quality, and optimize manufacturing operations to the shop floor level. New products are proliferating in manufacturing today, and delivery windows are tightening.

Changing the Production Performance Metric

Logility

Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. The production efficiency is one of several measures across the supply chain including inventory and customer service and profitability. The bad news for this company is that those big, expensive, mass production machines aren’t very good at the high mix, lower volume, flexible manufacturing required for this new market.

6 Benefits of Effective a Reverse Logistics System & The 9 Core RevLog Metrics to Track

GlobalTranz

For instance, a growing number of cell phone manufacturers have established procedures in place for consumers who wish to return an older model and ensure that the device is refurbished or recycled rather than dumped into the local landfill. Importance of Metrics in Reverse Logistics Management. To monitor progress against its reverse logistics management plan, a company needs metrics that measure the financial impact of returns on the firm and on other members of the supply chain.

Seven Misconceptions on Managing Inventory in a Market-Driven World

Supply Chain Shaman

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. Inventory is the culmination of many business decisions. The Inventory Management Journey.

Changing the Production Performance Metric

Logility

Anyone who has worked with asset intensive process manufacturers knows how hard it is to change the thinking about machine capacity utilization. The production efficiency is one of several measures across the supply chain including inventory and customer service and profitability. The bad news for this company is that those big, expensive, mass production machines aren’t very good at the high mix, lower volume, flexible manufacturing required for this new market.

DIFOT: A Metric of Supplier Performance

Unleashed

Delivery In Full On Time, or DIFOT, is a metric used to analyse how accurate and efficient your supply chain is. When it comes time to reassess the approved supplier list, then you can use these metrics to disqualify problematic suppliers and improve your own performance and supply chain. If you are measuring your own DIFOT scores as a distributor, you can use the metrics to promote your own success and ability to fulfil demand.

How & When to Update a Legacy System in Manufacturing

USC Consulting Group

If you find yourself attached to your legacy software and hardware in your manufacturing operation, you’re not alone. In manufacturing, IoT alone offers powerful solutions through data gathering, supply chain innovation, product and performance assessments, and much more.

Take Advantage of Digital Manufacturing to Improve Workforce Productivity

DELMIA Quintiq

Much has been done to improve manufacturing efficiency. Supply chains have been optimized; warehouse inventory tracking has reached new levels of precision; production lines can operate with virtually no downtime. As the common linchpin that brings together all manufacturing activities, has this metric improved along with all the investment in new technologies? As a result, this metric is often downplayed or not referenced in the discussion.

Inventory Management Levers – Success Through Collaboration

Kinaxis

by Andrew Dunbar So you’re an inventory manager, and your CFO just asked you to reduce inventory by 10% before year end to free up some capital for next year’s big investment in R&D. But then you look at historical trends and see that lately, your inventory has been growing by 3% each quarter. Below are five levers that I believe should be available to an inventory manager to help them effectively plan and manage inventory.

Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process

GlobalTranz

When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ).

Lean Manufacturing: Is it Really Worth It? 16 Big Benefits Say, “Yes.”

GlobalTranz

Customer expectations of reliable quality and rapid delivery forces today’s manufacturers to either shorten cycle times or lose business. There are multiple good models for lean manufacturing operations. Who Needs Lean Manufacturing? A company in need of lean manufacturing practices tends to be easy to identify, typically displaying multiple of the following symptoms of operational deficiency: Inventory amasses in buffer stocks. cuts inventory costs.

Lean 260

A New Decade: Give Science A Chance

Supply Chain Shaman

Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. When compared to pre-recession years, we ended the decade with twenty more days of inventory. Days of Inventory Comparison.

Are you getting the most out of your inventory management process?

Kinaxis

by Andrew Dunbar Inventory is often the single largest asset on a company’s balance sheet and your inventory management process can have a huge impact on your organization’s bottom line. Understandably, the inventory management process is getting a lot of attention by organizations looking to squeeze out some extra profit in a challenging marketplace. When you think about the priorities of your inventory management process, what’s the first thing that comes to mind?