Key Performance Indicators (KPIs) are a valuable tool for the management of manufacturing operations. By choosing a few measurements, and perhaps manipulating them into monitoring values, an organization can better realize it’s objectives. The ISO 22400 series has been developed on this very topic and the Part 1, ISO 22400-1, has just been released. Titled “Automation systems and integration — Key performance indicators (KPIs) for manufacturing operations management — Part 1: Overview, concepts and terminology,” it’s a great introduction to KPI and the value it brings to any business.
The ISO 22400-1 was specifically developed for MOM (Manufacturing Operations Management). The KPI’s generated will be from data from the control domain with an eye to providing decision support information. However, you’ll find it a relevant document if you need to understand the concepts and data flows used for generating and using KPI’s in general.
The beginning of the standard is fairly routine, with a scope clause, then terms and definitions, as well as an abbreviated terms section that’s so helpful if you’re new to the field. Then the document delves into the basic concepts of KPI’s in general. You’ll learn what criteria to use, what types of KPI’s are available, the categories of KPI’s by purpose, generating KPI’s from measurements and so on.
Section 5 is titled “Definitions and descriptions.” It really provides you with concrete information on KPI’s themselves. Here you’ll find a table with the basic structure of a KPI, how to present effect model diagrams, and more.
Section 6 on exchange and use provides guidance for taking the KPI data and moving it between one MOM application and another. And Section 7 discusses relationships and dependencies. This is visually defined with the presentation of Table 2, a model of relationships and dependencies. Here you’ll see how the data can flow throughout the organization, and how that data is then modeled into the various KPI’s you choose to focus on. You’ll also get computational support for verifying the effectiveness of your KPI’s.
Annex A brings the KPI primer back to the context of MOM, so you’ll be able to review the benefits, etc., of KPI’s specifically within this environment. A 6-item bibliography completes the document.
FYI: There’s also the ISO 22400-2 available, “Automation systems and integration – Key performance indicators (KPIs) for manufacturing operations management – Part 2: Definitions and descriptions.” It was released at the beginning of the year. And 2 additional parts are currently in the works — Part 3: Exchange and use and Part 4: Relationships and dependencies.
If you need a methodology for structuring the use of KPI’s in your manufacturing environment, you’ll want a copy of this new standard. Head to the Document Center webstore at www.document-center.com and order your copy now. It comes in both paper format and for pdf download, and you can include it in your multi-user online subscription service too! If you’d prefer to work with our staff, you can contact them by phone (650-591-7600), fax (650-591-7617) or email (info@document-center.com). We’ve been helping folks improve their operations by using standards effectively since 1982. Make us your Standards Experts!
