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Guest Post: Key Metrics for Electronics Manufacturers - How Cloud ERP Helps to Improve Them

Whether it’s in regard to the production of printed circuit boards, managing final assembly or performing other operations, electronics manufacturers are faced with challenges that touch every business unit and process. The strongest competitors rely on real-time data and complete production visibility.

Emerging technologies such as Cloud ERP provide the data and visibility needed to improve business performance. But how can a business tell if it’s actually improving performance? By measuring and monitoring the following metrics:

New Products Introduction (NPI)

Because electronics manufacturers are faced with demand uncertainties and rapidly changing customer needs, operational models must facilitate improvements in NPI. Seamless transitions and integration are needed between design and manufacturing. Market leaders are differentiated by short time-to-market cycles. Measuring and tracking NPI can help.

Complete and On-time Deliveries

The complete and on-time deliveries metric is a good way to monitor operational efficiency and quality. With demanding customers, the global supply chain and escalating pace of obsolescence, inventory must move quickly.

Operational Equipment Effectiveness (OEE)

One of the most comprehensive quality management metrics, the OEE formula measures equipment availability, efficiency, and quality. It reflects how often a given machine, tool or piece of equipment is available when it should be producing product, how close it is producing to its theoretical maximum and the percentage of its products produced within specification. OEE is tied to quality, yield and rework measurements. Monitoring OEE enables electronics manufacturers to optimize availability beyond demand. This, in turn, drives supply-chain efficiencies and JIT capabilities.

Percentage of Products in Compliance

Electronics manufacturers rely heavily on this metric, which indicates compliance levels with REACH, RoHS, WEEE and other government regulations and standards. By monitoring this metric, manufacturers are able to identify whether SOPs and internal specifications are achieving expected results. Product compliance is a key to improving business performance and reducing operational risk.

Automation standardizes and centralizes data. When an electronics manufacturer replaces paper processes and disparate systems with a single, integrated Cloud ERP solution that collects, tracks and reports operational data, decision-makers can take a holistic approach to operations. They are able to monitor the above key metrics in a more effective, meaningful way. Cloud ERP functionalities such as reporting and analytics, data visualization, real-time visibility and mobility are providing superior capabilities to streamline workflows that help monitor and improve these metrics.

To learn how Cloud ERP helps drive improvements in these metrics, click here to watch this on-demand webinar with me and my LNS Research colleague Mike Roberts.

Matthew Littlefield founded LNS Research in August of 2011 and is now President and Principal Analyst. Matthew’s personal coverage areas include the topics of Enterprise Quality Management Software, Manufacturing Operations Management, Asset Performance Management, Sustainability, and Industrial Automation 2.0.