Manufacturers select metrics that often provide little insight – measuring technology uptake rather than the transformation’s results. Sep 11, 2023 Digital transformation requires rigorous and targeted oversight to achieve strategic goals while measuring the return on investment. Yet, manufacturers select metrics that often provide little insight, measuring technology uptake rather than the transformation’s results. Digitalization requires a careful selection of key performance indicators (KPIs) for strategic intent and the achievement of business goals. KPI Alignment and Focus In devising KPIs, it’s important to distinguish between business improvement and the rate of technology rollout. After identifying improvements, you need to choose the business categories from which you’ll gather relevant metrics. Some will be externally focused, measuring digitalization’s effect on customers, stakeholders, value creation or sustainability. Others will measure internal impacts, covering operational effectiveness or efficiency, employee engagement, or workforce productivity. There are many generic measurements of business health, success and efficiency. The following six are common to most manufacturers. To better illustrate KPIs, we’re going to use the example of a fictitious carton manufacturing business. 1. Manufacturing availability is the ratio of machine uptime to machine downtime. Equipment availability is key to meeting client volumes and deadlines without incurring penalty […]
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