What Does It Mean?
Production volume measures the total amount your company can produce over time. This KPI tracks the total number of products manufactured over a set period of time (days, weeks, months, quarters, years) and focuses on total output.
Why Does it Matter?
Having production volume in your manufacturing analytics dashboard can express a lot about your manufacturing process, including how efficient you are and the times when you are producing more or less.
Because production volume is measured over an established period of time, you can easily compare a specific point in time against a benchmark or even as part of a larger trend.
For instance, knowing that you have a spike in production volume during a specific period every year can help you prepare in advance to avoid down time, machine failures, and resource scarcity. Similarly, it can inform you if your factory or production floor is operating as efficiently as it has in the past.
How Do you Measure the KPI?
To measure production volume, you need to first select the time period you wish to monitor. After establishing the correct time frame, you should collect overall production data on every product manufactured and combine it to form an aggregate figure. Note that your production volume may vary depending on the period you’re measuring.
What Sources Would you Use to Measure the KPI?
To understand your production volume, you’re going to need data from every machine that yields a product ready for shipping or delivery. Additionally, you’ll need to collect aggregate data for your entire production floor.
Give me an Example…
Let’s say your factory has been producing goods steadily for the past several months, but you notice that your sales numbers have dipped this month ahead of an important sales season. Your machinery seems to be operating at the same levels, and there doesn’t appear to be a reason accounting for the decline in sales.
Tracking your overall production volume for the most recent month compared to previous ones, you might ascertain that production volume has been steadily dropping, or that rates which should be increasing to keep up with advance demand may be too flat, thus causing you to miss out on important profit opportunities.
What Benchmark/Indicators Should I Use?
Useful indicators include: