As a small business owner or entrepreneur, you know that productivity is key to success. In the manufacturing sector, productivity is often measured by the output per hour of work. But there are other factors to consider when measuring productivity in a manufacturing setting. Let’s take a look at a few of them.
Number of Products Produced Per Hour
One way to measure productivity in manufacturing is to look at the number of products produced per hour. This metric gives you a good idea of how efficient your production line is and how well your employees are trained. If you see a sudden drop in productivity, it could be due to a problem with the production line or an employee issue. Either way, it’s important to take action quickly to rectify the situation.
There are several ways to calculate the number of products produced per hour but here are some of the most common:
- Output per machine hour
- Output per employee hour
- Output per shift
- Output per day
Or you can also do the following:
- Use a counting system to track the number of products produced.
- Have employees mark each product with a unique identifier as it is produced.
- Track the number of products produced in real-time using sensors or RFID tags.
- Keep records of the number of products produced each day, week, or month.
Cost Per Unit Produced
Another important metric to consider is the cost per unit produced. This metric takes into account the direct costs associated with manufacturing each unit, such as materials and labor. It’s important to keep an eye on this metric because it can help you identify areas where you can reduce costs and improve efficiency.
For example, if you see that the cost per unit has increased suddenly, it could be due to a material price increase or an issue with labor productivity. By keeping an eye on this metric, you can take steps to address these issues before they have a major impact on your bottom line.
There are a few different ways to track the cost per unit produced such as the following:
- Keep records of the direct costs associated with manufacturing each unit, such as materials and labor.
- Use standard costing methods to calculate the average cost of producing each unit.
- Use process flowcharting to track the flow of materials and labor through the production process.
Manufacturing Cycle Time
Last but not least, manufacturing cycle time is another key metric for measuring productivity. This metric measures the time it takes to complete one cycle of the manufacturing process, from start to finish. The shorter the manufacturing cycle time, the more productive your operation is. If you see that manufacturing cycle times are increasing, it could be due to an issue with the production process itself or with one of the suppliers. In either case, it’s important to investigate and take steps to address the issue so that productivity doesn’t suffer as a result.
One way to measure manufacturing cycle time is to track the time it takes to complete one full cycle of the manufacturing process, from start to finish. This will give you a good idea of how efficient your operation is and where there may be room for improvement.
There are a few different ways to track the time it takes to complete one full cycle of the manufacturing process. One way is to use a time clock to track the time it takes employees to complete each step of the process. This can help you identify areas where there may be room for improvement. Another way is to use a Manufacturing Execution System (MES) to track production data and identify bottlenecks in the process. By using this data, you can make changes to the production process that will help improve productivity.
The Overall Equipment Effectiveness (OEE) measuring system is another effective way to measure productivity in a manufacturing setting. This system takes into account factors such as availability, performance, and quality to give you a comprehensive overview of how productive your operation is. By using the OEE system, you can identify areas where productivity needs improvement and take steps to address them.
There are many different ways to measure productivity in a manufacturing setting. The most important thing is to track multiple metrics so that you have a clear picture of what’s going on in your operation. By tracking things like output per hour, cost per unit produced, and manufacturing cycle time, you can identify problems early and take steps to address them before they have a major impact on your business.