4 Useful Metrics Your Process Manufacturing ERP Should Be Monitoring
Implementing process manufacturing ERP can be the key to unlocking success in many businesses. This success, however, relies upon the system’s users tracking and monitoring the right sets of system data. Here are four process manufacturing metrics that your ERP can measure and track that may provide your business with some interesting insight.
1. Batch Changeover Time
Changeover between products or lots is important to any process manufacturer. This can be relatively simple, like a change in colors at a paint company or very complex such as that at a drug manufacturer where the ingredients in one process might react unexpectedly with an unrelated product using the equipment next.
Recommended Reading: 7 Steps to Selecting Process Manufacturing ERP
What is common to all process manufacturers is during these changeovers, nothing is being produced and no profit is being earned. Process manufacturing ERP can help by analyzing the components of the change to allow separation of internal components from externals. Looking at personnel who have worked on the change might pinpoint that certain people are faster or make fewer mistakes than others. The benefit? Improved customer satisfaction through a reduction in unproductive time.
2. Capacity Utilization Rates
Process manufacturers often employ unique and expensive equipment required for their processes. The rates of production for each product and operation should be contained in any process manufacturing ERP worth its salt.
The rates of production for each product and operation should be contained in any process manufacturing ERP worth its salt.
By measuring these rates, ERP scheduling tools can line up the operation processes for one product with the processes for another product so that equipment is optimally in use and no time is lost at all. Ideally the equipment is making something 100% of the time it is not down for planned maintenance or to clean out after a production run. Capacity utilization is an important process manufacturing metric for efficiency.
3. Energy Cost per Unit
Production in process industries often requires heating and cooling products at specific rates during processes. Large pumps might be used to increase or decrease pressures within the equipment. The entire plant might need a specific atmospheric makeup and tightly controlled temperature and humidity within the walls. All those factors result in high energy costs.
Process manufacturing ERP should measure the rates of energy consumption throughout batch processes and allow some degree of control as well as providing an alert when the consumption rates exceed the planned rates. Tracking energy cost per unit as a primary process manufacturing metric gives you the ability to reduce energy costs and, therefore, increase profits.
4. Revenue per Employee
This is a measure of productivity which helps us attain profits. Process manufacturers often have highly automated workflows with only a few employees monitoring the gauges. Each employee has associated costs. If these costs begin to outweigh the value added to your processes, profitability will suffer. With this in mind, revenue per employee becomes a crucial process manufacturing metric to monitor.
There are a wide variety of process manufacturers making different products. Each one has their own goals and improvement plans. These metrics are only a sample, but they demonstrate a number of areas where your ERP can give you an overview of business success.
Featured white papers
Manufacturing ERP: 10 steps to success
Complete step-by-step guide to manufacturing ERP softwareDownload
Manufacturing ERP Implementation Checklist
Over 70 actionable steps to rolling out new manufacturing ERP softwareDownload
Manufacturing ERP requirements template
Over 120 critical manufacturing ERP features in one downloadable spreadsheetDownload
What is manufacturing ERP inventory management?
The advantages of ERP inventory management including features, processes, and more
Benefits of ERP for reducing manufacturing costs
The key areas where ERP can reduce your manufacturing costs
Five ways Drum-Buffer-Rope scheduling can boost your manufacturing performance
Exclusive guest blog from Genius ERP on DBR scheduling in ERP