Question

Operational Metrics - Production standards

  • 9 September 2021
  • 3 replies
  • 270 views

Userlevel 1

I am looking for some help or ideas on how to solve the following situation.

In Epicor jobs we have operations that have a production standard tied them (pieces per hour) that is the primary driver for load for scheduling and capacity planning. We set the production standard, but they can and are updated based on an improved process, new tooling, different machine, etc. What we are looking for is a way to keep the production standards up to date but to have a way to track where we started with the standard in comparison to where we may get to in improvements or maybe even reductions.

We are looking for a way to manage and give ‘credit’ to our different when we make gains that improve our capacity planning, ability to give customers price reductions, or see where we need to add machines or automate certain departments. In addition to having some overall operational measures at a department leve.

How are other companies measuring or handling this type of request from management? I’d appreciate any ideas or process enhancements you have.


3 replies

Userlevel 2

Are you saying you improve the production standard on the method of manufacture or on the job? Are you Quantity only for labor or do you do Time and Expense?

Userlevel 1

Honestly, it sounds like you need to hire a cost analyst/cost accountant.
Most manufacturing companies 30M and up will have a dedicated full-time head for this task.
 

Userlevel 2

Not sure if this is what you are looking for but I identify jobs which are not making profit with the gross margin report.  I have a check box and date I put in part entry to mark if  a part has designated on review. We periodically have meetings to discuss on review jobs. Any change suggestions on production  plans I put in a part memo with category review.  The on review noteprints on job travelers and the memos print on production inquiry reports. Parts that improve can have methods and costs changed. Parts that fail to improve are designated to be requoted and prices raised. 

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