Example of Management Indicators

The management indicators, are a group of procedures that have the objective of measuring the different processes carried out in a company or institution, in order to find the neural or essential points, which can help to improve production processes or improve the services that are wanted lend.

The application of these procedures results in a clear view of the defects that prevent further production or a clear appreciation of the reasons why some departments increase their rate of job.

By being clear about the points to be corrected, the administrator has to show the data collected, clearly to the corresponding managers.

The information that can be presented is very varied, and it depends both on the type of institution or company and the type of product.

May exist:

• Changes in the production method
• Changes made to product design
• Material types
• Used machinery etc.

Identifying the deficiencies of the past or the current errors, which slow down the completion of the desired project (be this a manufactured product, or a service), for its correction, and thus make the process, manufacturing or service more efficient borrowed.

Management indicator example:

In a custom shoe factory, in which an average of 100,000 shoes are ordered each year, which are delivered after six months requested, delivery time can be reduced, making processes more efficient, such as improving the transport of the different materials from one part of the factory to another, or by eliminating unnecessary manufacturing processes, thereby speeding up production.

Suppose the boss of a shoe factory wants to analyze the performance of his workers.

You want to know how much each employee has contributed to the growth of the factory and its production.

In this case, the Management Indicator that is applied can be the Productive Performance per employee, to calculate the contribution of each employee in the manufacture of the factory's products.

In this case, we are going to assume that it is a formula that represents the products manufactured by each worker in three months.

Measurement frequency is the measurement duration; we would put a daily evaluation of the amount of products manufactured per daily worker.

Estimate, in this case, would mean the maximum (estimated) number of finished products per worker per day.

The current Threshold could represent the number of shoes made per worker per day today. Let's say that each worker finishes three pairs of shoes a day.

The Target Value would be to show the difference between the products manufactured and the estimates made per day, of the amount of manufactured shoes, indicating the number of products that would have to be made per worker to obtain the results required. Let's say there are five shoes per worker.

The data collected is put into a data table, which shows the daily quantity of shoes manufactured by worker, (both in the past) and today, for daily comparison with the data that comes out each day.

In order to obtain the expected Productivity, it is vital to fully identify the goals and objectives of the Organization or company. This helps determine the key factors that contribute to achieving those goals and objectives, such as eliminating unnecessary processes in manufacturing, improving transportation of raw materials, working conditions that are improved for the better performance of workers, better use of time, (entry to work, time of food, hours of rest, improvement and maintenance of work tools, etc.) thereby improving the performance of workers, and increasing the productivity.