Scrap and Rework Costs
How much product are you scrapping or reworking in your manufacturing facilities each day? It adds up. If your numbers in this metric are high, then your processes to assure quality outcomes may need some attention.
As the data here indicate, scrap and rework costs among the past five years of IW Best Plants winners and finalists were a median (or middle) 0.5% of sales, while the mean -- or average -- was 1% of sales.
Better training leads to better outcomes. How much on-the-job training do you offer your production employees?
Among the 2010-2014 IW Best Plants winners and finalists, production workers receive a median 40 annual hours of on-the-job training and an average of 50.6 hours.
As the data show, however, training numbers can vary widely. At the high end, at least one manufacturer says production workers receive 271 annual hours of on-the-job training.
OSHA-reportable Incident Rates
This table illustrates the good safety metrics that result from the IndustryWeek Best Plants winners and finalists' good safety practices.
The 2010-2014 winners and finalists report an average incident rate that is 50.6% (or half) of the industry average. The median is 39.6% of their industry average.
Purchased Materials Costs and Inspection
How much time and effort do you devote to the non-value-added activity of inspecting your incoming purchased materials. Must you inspect everything or have you developed such a trustworthy relationship with some of your suppliers that their goods can enter your warehouse or manufacturing floor without you having to look them over?
Among the 2010-2014 IW Best Plants winners and finalists, an average of 71.2% of incoming purchased material no longer requires incoming inspection. The median is 90%.
All that said, strong, trusting partnerships may not be enough. In some industries, government regulation may require a certain level of incoming inspection.
On-time Delivery Rate
If you can't get your manufactured product to the customer on time, then your position as a supplier likely is in danger.
As the data show, the mean (also known as the average) on-time delivery rate among the 2010-2014 IW Best Plants winners and finalists is 95.9%.
As an added note, 51% of this IW Best Plants group based their calculation on the date requested by the customer, which is typically is a tougher measure to meet than the date promised to the customer.
Are your machine operators performing routine and preventive maintenance, leaving the skilled maintenance staff to address more complex maintenance and reliability functions?
Among the 2010-2014 IW Best Plants winners and finalists, 84% say that yes, their machine operators address routine maintenance.
Reductions in Raw Materials Inventory
Have you recognized that you are carrying too much raw materials inventory and suffering for it. Not only is money wrapped up in the inventory itself, but it's also wrapped up in the warehousing required to hold the material. Moreover, carry way too much and maybe it ages beyond the ability to use, or the product it was meant for no longer is made. Then you're left with obsolete material.
The 2010-2014 IW Best Plants winners and finalists have made significant efforts to rightsize their inventory levels, and the metrics tell the tale. They've reduced that raw materials by an average 17.1% over the past three years, and the median is nearly the same.
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