Streamlining Car Production Operations with KPIs

Car manufacturing invariably requires a great degree of control over both the "technical" and "management" aspects. For instance, owing to the massive amount of teamwork that occurs in the huge production facility, there emerges a need to ensure that information transfer from one point to another is "flawless".

Moreover, several other vertical and horizontal industries depend on this sector to keep them running. For instance, the basic materials put in the vehicle provide a breeding ground for other organizations like those involved in "production of rubber, glass, plastics, accessories etc". In addition to these, numerous car dealers engaged in "after-sales" activity" thrive on the well-being of "production companies". Also, players of this sector provide employment opportunities for countless people; thereby making it mandatory to streamline the processes.

Further, it goes without saying that the "financial motives of the owners" and "dynamic technical scenarios" cannot be undermined in any sense. So it is necessary for such a giant shop to make "the show go on" nonetheless failure of any such facility will spell a doom for the uncountable persons, who are engaged with it in some or the other way.

Yet another aspect that deserves attention relates to the "environment concerns" that are concentrating with each passing day. "Volume of harmful gaseous emissions" and "waste produced" calls for adoption of techniques to minimize the climatic degradation.

Combining all these internal and external factors, it seems there has to be a "connecting link" between the classes to ensure that everything occurs in a seamless way. One of the threads that has the potential of binding all the aspects is "BSC (Balanced Scorecard)". This rests on the simple theory that "to succeed an organization cannot pull leading indicators without paying deserving attention to the lagging counterpart". Detailed analytical activities are to be carried out to "decide rightly". This is possible by bringing together the "useful and relevant metrics" in one place where these can be reviewed on continuous basis, may be monthly or yearly, as the need be. The parameters are attached "target values" which are a calculative way to reflect "where does the organization intend to go".

To start with, the KPIs that can help are- number of vehicles produced on a yearly basis, % decrease in per unit cost of production, average production downtime and average production time (to gain "Car Production perspective"); number of quality concepts used, defect rate, "first pass" quality (to assess the Quality maintenance Perspective); number of hours worked per week on per employee basis, work related injuries and overall equipment effectiveness (to evaluate Internal processes perspective) and Volatile organic compounds, energy use, waste to landfill, water use (to obtain Environment perspective).

With such a "scorecard" in hand, an organization can better connect the individual and organizational goals; communicate with employees in an improved and accurate manner and such a "quantitative and summarized" goes a long way in fulfilling organizational objectives.