Industryweek 2035 14576kpigraph

Best-In-Class KPIs

July 12, 2007
Lean technologies improve production metrics.

An Aberdeen Group survey of more than 400 manufacturers shows that top-performing operations depend on several key performance indicators (KPIs) to measure success. Respondents that report the most success also say they're integrating lean-enabling technologies with their ERP systems. Aberdeen distinguishes "best-in-class" manufacturers as companies that have achieved an average of:

  • 95% on-time delivery;
  • 91% throughput;
  • 79% manufacturing cycle time reduction.

But manufacturers identified other KPIs that were critical to their operations (see chart). Aberdeen Group also asked manufacturers about the top market pressures they face. Respondents say their challenges include:

  • the ability to reduce overall manufacturing costs -- 71%;
  • using manufacturing as a competitive advantage -- 34%;
  • achieving shorter lead times demanded by customers -- 32%;
  • effectively dealing with demand uncertainty -- 21%;
  • increasing complexity of manufacturing processes -- 18%;
  • rising demand for more on-time and complete shipment -- 11%.

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