In earlier posts I have discussed about Key performance indicators (KPIs) and production display board used in sewing factories. Today, I will share about KPI Display board that displays actual and target figures of factory KPIs.
Do your employees know KPIs of the factory? In case they know the KPIs of the factory, do they aware about your targets for all KPIs and how much factory has reached so far?
A KPI Display board can make a big difference in achieving your business goal. If employees are not informed, they would not care about your targets. It is like 'Out of sight is out of mind'.
Let your employees know what the mission of factory performance is. You may discuss things on meeting room and set target for the month with your middle management but that is not enough. To improve factory performance on continuous basis and become competitive in the industry you also need to set a goal for KPIs.
Display all key performance indicators of your factory in front of the workers in each department. Separate display boards can be made for different departments. See the above KPI display board of a garment export house from Bangladesh.
Display what are factory targets for the current month and where factory were in the last month or benchmark level. Make display boards with figures. This board can be placed on the shop floor, production manager’s cabin and IE’s Cabin.
Company wants growth in sales turnover and employees want growth in terms of pay package and position. Growth would not come automatically. Employees need to take action towards continuous factory improvement to bring growth in factory as a whole.
Earlier days company owners looked into their growth in balance sheets and accounts. But that was a yesterday’s method of seeing the business growth. Now keeping the balance sheet aside, you also need to set main goal of a company in bringing down cost and increase saving and increase factory earning. These three parameters can be linked to each process of garment production. So you measure performance of the factory, especially those are linked with financial growth. Like, factory efficiency – if factory improves its efficiency level, labor cost would come down, hence per piece production cost would also come down. To start working on improvement first you have to measure current performance level.
Through the display board all employees would be informed about the present performance level in various areas.
I have explained KPIs of a production factory here. You can use those KPIs. OR you can set your own adding other factors that makes your business profitable. Few important KPIs those are essential for displaying in KPI display board.
Do your employees know KPIs of the factory? In case they know the KPIs of the factory, do they aware about your targets for all KPIs and how much factory has reached so far?
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| Image source: DCG |
Let your employees know what the mission of factory performance is. You may discuss things on meeting room and set target for the month with your middle management but that is not enough. To improve factory performance on continuous basis and become competitive in the industry you also need to set a goal for KPIs.
Display all key performance indicators of your factory in front of the workers in each department. Separate display boards can be made for different departments. See the above KPI display board of a garment export house from Bangladesh.
Display what are factory targets for the current month and where factory were in the last month or benchmark level. Make display boards with figures. This board can be placed on the shop floor, production manager’s cabin and IE’s Cabin.
Company wants growth in sales turnover and employees want growth in terms of pay package and position. Growth would not come automatically. Employees need to take action towards continuous factory improvement to bring growth in factory as a whole.
Earlier days company owners looked into their growth in balance sheets and accounts. But that was a yesterday’s method of seeing the business growth. Now keeping the balance sheet aside, you also need to set main goal of a company in bringing down cost and increase saving and increase factory earning. These three parameters can be linked to each process of garment production. So you measure performance of the factory, especially those are linked with financial growth. Like, factory efficiency – if factory improves its efficiency level, labor cost would come down, hence per piece production cost would also come down. To start working on improvement first you have to measure current performance level.
Through the display board all employees would be informed about the present performance level in various areas.
I have explained KPIs of a production factory here. You can use those KPIs. OR you can set your own adding other factors that makes your business profitable. Few important KPIs those are essential for displaying in KPI display board.
- Factory efficiency (line wise efficiency break up)
- Machine productivity and labor productivity
- Lost time percentage
- Machine utilisation percentage
- Defects per million and Defect per hundred pieces
- Man to machine ratio
- On time Shipment percentage
- Garment cost per pieces
- Labor absenteeism percentage and labor turnover rate
- No. of improvement projects those are successfully implemented
Do you have KPI display board in your factory? What KPIs you are currently displaying? Or are you planning to start adding such display board in your factory? Please share your thought.