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.