KPI of the Day – Quality Management: # Units per man-hour
Definition
Measures the number of completed units realized per hour of work. A man-hour is the amount of work done by one person in one hour.
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Measures the number of completed units realized per hour of work. A man-hour is the amount of work done by one person in one hour.
Efficiency is critical for all businesses, not least those that operate in the manufacturing industry. All it takes is one mistake on the production line — be it a human-made or machine-related mistake— and whole operations can be ruined and shut down immediately.
Measures how much of the production schedule is actually achieved.
Today’s business world is gradually becoming more competitive, and all companies are compelled to produce high-quality products and services.
As much as we may like to have all the answers right, there still are the inevitable instances in which we don’t. That is why we sometimes need to do a little research in order to understand what we did wrong. Various implementation models of performance management systems worldwide do not make our job of getting the right answers less difficult. However, it is through research that we can benchmark our practices to those of our peers and, ultimately, discover the limitations behind our rationale.