Manufacturing KPIs aren't just for the consideration of management, they offer as much, if not more, value to employees on the factory floor. In this article, we'll take a closer look at KPIs, their various benefits, and how they can be used to engage and motivate your workforce.
Defining the Terms
Before we dive into how displaying KPIs on the factory floor can help engage your team, it's important to define KPIs from a manufacturing standpoint. KPI stands for key performance indicator. In manufacturing, KPIs can include metrics such as production output, downtime, units produced per hour, OEE, and more. Visual management, meanwhile, is a system in which KPIs are displayed on a factory floor to provide front-line workers with real-time data on performance as well as clear objectives.
Trends and Benefits of Displaying KPIs
There are several benefits associated with displaying KPIs on your factory floor as well as a few recent trends that displaying KPIs allows you to take advantage of. These trends and benefits include:
Increased Productivity
It's a proven fact that learning and memory are directly connected to our visual perception. When employees see KPIs in front of them each day, it drives home the actions that these KPIs are supposed to instill. Our clients report significant productivity increases just by having their employees see this data each day.
Improved Motivation and Morale
Numbers don't lie. They aren't subjective, and can be understood at a glance. Displaying KPIs on your factory floor allows your employees to immediately recognize areas for improvement. It also makes it easier for your team to set goals and motivate them to work better to improve production performance.
Incentivizing Performance
Incentivizing employees on the production floor is a great way to help them reach their targets. When employees feel that their hard work and dedication are rewarded, they become more engaged and committed to achieving production objectives. This, in turn, leads to increased efficiency, reduced errors, and a more cohesive and motivated workforce, all of which contribute to the successful attainment of production goals.
Transparency
Employees want to feel as if they are part of something and keyed in on important information. Otherwise, they may begin to grow dissatisfied with their job, making employee retention more difficult. Since employee retention is such an important factor in running any successful business, it's a good idea to keep your employees feeling as if they are part of something bigger by being open and transparent. Displaying KPIs on your factory floor can help with some of that transparency by constantly keeping your employees in the loop when it comes to the information that is most important to them. In addition to helping your employees feel better about their jobs, this kind of transparency can also help them better understand how the entire operation works, enabling them to work more efficiently with other employees and the machines they are using.
What Are the Best KPIs to Display?
There is a wide range of KPIs that you can display, each with its own set of benefits. These KPIs include:
- OEE (overall equipment effectiveness)
- Productivity statistics such as production output, efficiency, and quality
- Percent of planned production that is complete
- Current downtime duration
Of course, these are just a small sample of the KPIs you have available to choose from. When deciding which KPIs to display, there are a few important things that you should keep in mind. First, it's important to focus only on the critical data and not overwhelm your team with too much information. Second, don't be afraid to display negative stats; seeing areas that need to be improved can help staff focus their efforts. Lastly, make sure the KPIs you display on your factory floor are controllable by your team. You want your team to know that their hard work can make a difference in the end.
By showcasing KPIs on your shop floor, you can boost your team's motivation with little effort. If you would like to learn more about how Worximity can help you display relevant KPIs on your production floor contact us today.
