MRP Process or Performance Metrics

[Former Member]

HI,

I am looking KPI measures for MRP and Productions Planning process.

I am trying to put together a list of KPIs for our manufacturing processes, MRP, shop floor control, Inventory management and Production planning.

What should we be looking for to understand how well or how bad we are doing from process perspective from Sales Order creation through customer shipment? We want to understand the current situation and potential improvement.

Thanks.

Prasad

[Bob_McGlynn]

Prasad,

There should be KPI's and scenarios already built in to SCPM. The questions is going to be how to determine which of these to use for your business.

First, you need to determine what the overall goals are going to be and then the KPIs will grow out of that.

PM Plain Text Help

Think of Goals as your Priorities - by specifying certain priorities, you are signaling which activities or tasks are going to be most important. There is a limit to how many priorities you can specify - if everything is a priority, then nothing is a priority.

Improving performance means looking at Outcome, rather than merely Output. You can track how many hours people work, but unless that measurement can be applied to Results - all you have is data.

This is from Stacey Barr, who is a KPI guru. She says that to find meaningful measures,you:

SELECT- choose & define what's worth measuring

COLLECT - gather data which has integrity

STORE - manage the data so it's easy to access

PRESENT - that data in simple, relevant answers to priorities

ANALYSE - how is this data answering your driving questions - giving you information?

INTERPRET - translate the information into implication - what's really going on

APPLY - decide how implication becomes action

SCPM definitely helps with many of these pieces. You may have automated a number of process and are feeding that data into SAP BW, so that there are defined numbers for the out-of-the-box KPIs in SCPM. Still, you have to define what are the priorities of your organization.

It is much easier to start with your priorities or goals and then use the KPI list to determine if those will be appropriate measures, rather than starting with a number of KPIs that you have data for and try to decide on goals.

Regards,

Bob

Edited by: Bob McGlynn on Apr 5, 2010 3:10 PM