Predictive Key Performance Indicators (KPI)
Regular key performance indicators show the work that has been done in the past. This measurement of performance of the past helps put company goals in perspective to what has been achieved. KPIs thus provide essential feedback for employees and management.
Predictive KPI surpass regular KPI (of the past); they stand for the performance of the future. Through Predictive KPI of future business scenarios, which are based on different simulations of schedules, good decisions can be made. Ultimately, the optimized schedule can be implemented for the entire supply chain down to the factory level.
Strong Insights Via Predictive KPIs
Successful management is based on foresight (front-loading management). Predictive KPI are based on precisely simulated future schedules. The accuracy of such is, in turn, based on an end-to-end approach which takes all relevant constraints into account to create feasible, executable schedules. Through a holistic approach, the factory and the supply chain become orchestrated from a central vantage point.
Instead of relying on the experience of individuals in their respective tasks, Advanced Key Performance Indicators show future results according to which the optimal production scenario for the whole factory is made evident. And when production runs smoothly, peripheral departments such as sales, supply chain management, etc. are affected positively, as their value-added activities are conducted in alignment with the shop floor.
As performance indicators of the future, Predictive KPI contain essential information concerning factories. They consist of e.g.:
- Inventory KPI – total inventory value, raw material inventory, WIP inventory, finished goods material value, and others
- Resource KPI – Productivity, OEE, manufacturing time, setup time, capacity load and others
- Product KPI – Production quantity, manufacturing cost, contribution margin, profitability, and others
- Customer KPI – Production quantity, manufacturing cost, contribution margin, profitability, and others
- Order KPI – Earnings, profit, profit ratio, cumulative employee costs, cumulative total costs, and others
It is imperative that Predictive KPI exist for the entire scheduling period and also for shorter scheduling periods that are determined by management. This forms an important pillar for making effective management decisions in every case, which is the reason that every manufacturing company today requires an end-to-end scheduling solution.
Digital End-to-End Planning enables reliable forecasts
Almost one hundred evaluation parameters are contained in Asprova APS and Asprova SCP. This perpetuates total transparency through all organizational processes and production processes of the company and for all costs. For example, an investment for a new machine can be precisely evaluated, or you could trace the effectiveness of Lean-improvement projects regarding total operational effectiveness.
Asprova APS’ Predictive KPI are KPI of the future which are based on accurate simulation. The optimal schedule scenario can be determined, because the APS calculates for the shortest lead time, minimal inventory, minimal waiting time, minimal changeover time, minimal manufacturing cost, etc. while maintaining balanced load on all resources. In this way, management is provided comprehensive advice in deciding for a production scenario.