Key Performance Indicators (KPIs) are measured to assess where the factory currently stands and to seek out key focus areas where management must check out . Top 9 KPIs are listed and explained below that are measured by garment manufacturers (export houses) within the garment industry . Analysis of those KPIs is administered monthly.
1. Factory Efficiency Percentage
Factory efficiency indicates how efficiently sewing lines are run during a factory. This indicator is vital because the capacity planning of the factory and projected garment making cost is completed supported factory efficiency. Factory efficiency includes all lines minutes produced and total hours attended by direct labor in sewing floor. Target factory efficiency varies supported the order quantity. For the detailed calculation of efficiency ask ‘how to calculate the efficiency of a assembly line or batch?” For factory efficiency – calculate total minutes produced by all lines and total minutes attended by all lines. Factory efficiency% = (Total minutes produced X 100)/Total minutes attended.
2. Man to Machine Ratio:
When it's factory’s Man to Machine ratio (MMR), every employee of the factory is taken into account under manpower. So, Man: Machine= Total manpower: Total sewing machines available within the factory (machines those are in use). for instance , if a factory has 500 sewing machines and total manpower of the factory is 1100 then man to machine ratio =1100:500 OR 2.2. This ratio varies product to product and on organization structure.
3. Move ship ratio:
This is a ratio of total cut quantity and total shipped quantity of an order. This indicator is measured order wise and monthly shipped orders. to stay buffer (for damaged, defective garments) factory cuts extra pieces than order quantity. for instance , factory received an order of 20000 pieces, cut quantity 20200 pieces (1% extra cutting) and total shipped quantity 20000 pieces. Cut : Ship = 20200:20000 = 1.01. This indicator is measured to regulate surplus quantity after shipment, reduction in extra cutting and damaged garment. Target move ship ratio is 1.
4. Order to ship ratio
The buyer expects to receive full quantity from the supplier that has been ordered. this is often the foremost important factor that buyer uses for vendor evaluation. This indicator is calculated as = Total order quality/ Total shipped quantity. The target of Order to Ship ratio is usually 1. it's good if the factory can ship above order quantity (only if the customer accepts extra quantity).
5. On time delivery rate
How much shipment didn't meet target shipment date is analyzed at the top of every month? Target on-time delivery of every style is to satisfy shipment delivery date. If not meet reasons of not meeting delivery date are analyzed. it's calculated as = Total orders shipped on time/Total orders shipped within the month. for instance , if factory shipped 18 styles on outing of total 20 styles shipped during a month then On time delivery of that month is =18/20*100% = 90%
6. Average style change over time
The time gap between the previous style over (last piece out from the line) and first piece output of the present style is understood as style change over time. Shorter changeover time is taken into account as better performance level. It varies style to style and production systems. Time of Change over time of every style is recorded a mean changeover time of the factory is measured.
7. Right First Time (RFT) quality
This indicator is represented in percentages. Total audits passed within the first outing of total audit conducted by auditors. Right first time quality is measured in various stages of garment processing and analysis is completed audit wise. Higher values (percentage) of right first time quality is taken into account as better performance of the factory.
8. Quality of Production:
The quality level of every department is measured in DHU and Percentage defective unit. Higher the worth of DHU higher alteration time and better cost incurred in quality.
9. Downtime percentage:
Downtime is one among the topmost reasons for fewer factory efficiency. Factory analyses major down times to regulate and improve machine and operator utilization. Top 5 reasons for downtime (also referred to as non-productive time, Off-standard time) are line setting, operation sitting idle, no feeding, machine breakdown and no planning for a line.
Garment manufacturer more specifically garment export business may be a profitable business if factory performance is measured and management work to enhance performance level step by step. Each of the above KPI plays the role on cost , factory’s reputation, and margin of profit .
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