Performance indicators

In these times of fierce competition due to excess supply and reduced demand, work quality and productivity need to be increased as important attributes and indispensable tools for competing in the market. However, just producing more is insufficient now; it is necessary to seek excellence not only in terms of cost, but also in timely production with quality.

Today more than ever, to obtain the benefits of excellence in cost, delivery time, quality and price, one must have fast and accurate information that makes decision making in real time possible, in order to make improvements in the production system and take timely corrective actions.

Currently, production control and management using forms filled out manually makes analysis and evaluation difficult and tedious.

A company can’t be managed according to market developments. In these times of globalization of the economy, where the competition spills over our borders, “professional” management of our company is essential, and this starts with outlining economic objectives and goals in the market in which we operate. These must be clear and precise, with start and end dates.

To perform this task, we must know and measure our activities, in order to make the necessary adjustments whenever our activities are not in line with our objectives. Peter F. Drucker is famously quoted as having said “If you can’t measure it, you can’t manage it.” Hence the importance of performance indicators and their capacity to measure a system and lead to improvements in a company’s activities. For this purpose, the use of indicators that make it possible to evaluate operating activities is indispensable.

Currently, there are well-known, predetermined indicators that make it possible to evaluate and measure every area of a company. It is worth mentioning that a given organization may use these indicators or, better yet, create its own indicators according to its needs and proposed objectives, not only for production, but also for every other area of the company.

Let’s not forget that total quality is not the responsibility of only a few “chosen and enlightened” people in the company. It’s the responsibility of everyone in the company, but senior management must take the lead and make it happen.

Undoubtedly, the majority of indicators permit the management and analysis of a company’s operations—such as planning, administration, marketing, sales, accounting, operations, production, quality, maintenance, etc.—which makes proper decision making in real time possible through best operating practices and continuous improvement of its processes.

The advantages of indicators are many and their application makes them a powerful tool for reducing costs, increasing productivity, reducing shrinkage, maximizing the quality of products, improving  customer service, increasing sales, expanding markets, satisfying employee needs, minimizing risk, and more, while complying with current standards. Therefore, it is important to measure our activities.

Autor: Dante Merino La Rosa

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