Dashboard report to monitor the factory performance

A. Introduction

“Often, we hear that highly skilled leaders are struggling to succeed,

So, what would be a reason for their struggle?” 

In the garment manufacturing industries, solving the problem is not about skill what we have. It is about what kind of effective monitoring system we have. Unidentified issues are subsequently leading to the firefight at neck-movement. In this kind of circumstance, finding the remedial actions is a complex thing. Because. Our industry is depending on multiple man-oriented tasks and complex details. The successful leaders are developing the practice of key area monitoring. Monitoring the key function making us understand the organization's progress.

B. What is the single window monitoring report?

The good leaders in the organization are regularly monitoring the live details. In that most of them designed simplified “the single page monitoring dashboard- report” Here, the report is simple and covers a key part of the business process. Below report for your reference,  

Table – 1.1

We will refer one by one to what are the details presented in the report, and how they are prepared. This may help you for understanding and create your own “the single window monitoring report” 

1. Manpower details  

a) The employee's recruitments

Manpower is the primary resource. A good company having clear manpower required details to the organization. Following that manpower is arranged or balanced. So that organization can be operated effectively. The manpower required details may not be fixed. It keeps changes based on the expansion of capacity, maintaining present strength due to attrition, product mix, workmanship, production requirement, etc. This will be reviewed and updated on a regular basis.

Employees recruitments = (Employees recruitments + Absent + Attrition during training period)  

b) Employees required On-Roll

Based on manpower requirement, Employees on roll have to maintain. Clear norms have to defined for regular basis update on employee On-Roll. The same should be checked and updated in the employee requirement vs Employee On-Roll. Some of the companies not updating on that and just maintaining old details in the report. This will mislead the managers to take incorrect decisions. Because the production and delivery plan and all done followed by manpower. So manpower details should be updated up to date. 

 Employees Required vs. On-roll = (Employees required – Employees On-roll) 

 c) Employees left

Reviewing of employees-turnover rate is important. The company is investing time and cost to train the employees. If they leaving the job due to uncertainty in the organization, then HR could be arranging for counseling and to create conform to perform them back well. Contacting the exit employee interview and recording their feedbacks are good practices. This will be helpful to review and analysis. Based on the analytical details, we could take corrective and implement action to retrieve employees.

Employee’s attrition rate = (Employees left /Total employees On Roll) x 100

Note: Employees turnover called employees attrition

  d) Absent rate

Employee absence is common in man-based industries. But we can create prepare reviewing systems to motivate and reduce absenteeism. Also, could be developed Employee early leave requesting culture. This will assist the floor man to arrange the replacement. Tracking absent details is key data to understand the absenting trend for the year.

For example, Some local festivals, cultural activities, climate changes, exam season, school reopening, etc. are unique from place to place. so maintaining cumulative data of absence will help for pre-planning and preventing loss.

Absenteeism rate = (Employees absent / Employees on Roll) x 100

e) Employee appreciated

The details of employees appreciated are motivational activities. Based on the good activities and their performance. The employee could be motivated over the period.

For example, Oral appreciation, issuing appreciation letter, Sending appreciation mail, so on. 

Increasing appreciation activities in the company are indicator for work culture improving.

 Appreciation rate = (Employees Appreciated / Total employee On roll) x 100   

 f) Total employees reprimanded

Often employees were reprimanded for their activities during work. In some cases HR issues warning letters also. This has to be checked and reduced by adopting a good work ethic and morale among the employees. 

Reprimanded rate = (Employees reprimanded / Total employee On roll) x 100   

e) Total employees promoted

Promoting employees to the next level job will create healthy compaction among the worker. They could realize that true effort and performance elevate them. Increasing promotion rate is an indicator of on-job training. The activity of promotion is creating team spirit to move to gather from a diversity of employees. 

Promoted rate = (Employees Promoted / Total employee On roll) x 100   

h) Hazard rate Welfare activities

The hazard rate is an indicator of workplace safety. Every organization is responsible to provide a safe workplace. same way proper work safety training should be provided. Every hazard has to be recorded and analyzed for root cause and preventive action.      

Hazard rate = Number of hazard happened in the workplace   

2. Time Factor

a) Working days

workday is a factor for pre-planning. Working days are changes based on holidays and local festivals. Some of the holidays' impact on attendance is high. That might be before and after days of the holiday date. Some time employees coming late, going early, start late, etc.

We have to record it clearly. This will be helpful for the prediction future working days.

b) Overtime

Most of the companies over time are unplanned. The last movement they are in hurry to complete the backlog and arranging for additional working time. Usually, overtime wage is higher than normal. But output and performance are not higher than normal time. Increasing overtime working practice is leading for some complaints i.e. Cost increasing, customer complaints, social complaints, quality issues, so on. 

c) Man-day used

Calendar day and working hours remaining same. But the man-day used is not same in every day. Based on employees present, working hours, overtime, etc. are contributing to man-day deviation. Calculating proper man-day assist to arrive at an accurate ratio of productivity. Also, this could be referred at end of the month to understand total man-day used.

If normal working hours 8 hour, then,

Man-day used =  (Total employees x Working hours) + (Employees x Overtime) / 8 hours

This is calculated for only actual manpower who present and worked on the machine.

d) Machine shift used

Calendar day and working hours remaining same. But the machine used is not the same every day. Based on employees present, working hours, overtime, etc. are contributing to machine deviation. Calculating proper machine assistance to arrive accurate ratio of productivity. Also, this could refer at end of the month to understand the total machine shift used.

If normal working hours 8 hours, then,

Man-day used = (Total employees x Working hours) + (Employees x Overtime) / 8 hours

This is calculated for only actual manpower who present and worked on the machine.

e) Line idle time

Due to some reason line is getting idle, which might be due to No raw materials, No feeding, No approval, No setting, Quality issues, etc. the line idle time has to recorded with clear reason and analyzed to reduce it. Because every milli-second company is paying. Allowing line idle is leading Los and further backlog.

Idle time rate = (Idle time x Idle employee) / (Idle employee x Working time) x 100      

f) Loss of man hours

If the employees not worked due to any reason, then that is called lost time. Lost time is often occurring due to some reasons i.e. Electricity down, late coming, later starting work, machine breakdown, rework, Needle changes, no feeding, quality problem, approval pending, etc.  

Loss of manhour has to be recorded with clear reason. that will be useful for analysis and take action to reduce it. 

Loss time rate = (Loss time x Employee) / (Employee x Working time) x 100       

g) Effective time rate

We often monitor the work floor and say the employees are working well. But some of the employees are working slow or fast. Here, we Could able to measure how effectively they work.

Effective time = (production x SMV)

For example,

SMV for the particular process = 0.5, production = 100pcs per hour,

Effective time = 0.5 x 100 = 50 min,

Which means they have worked around 50 Effective per hour. Still, they can be improved their working speed.  

3. Production details

Monitoring of production is key activities, for example,

a) Total sewing lines – No of line planned and present.  

b) Planned production – Planned production for the day and month

c) Actual production – Actual production for the day and up to the day of the month.

d) Plan vs Actual

Plan vs actual production. This will help us to understand that how much of backlog or leading than the planned. Based on that required action could be taken. This will help us to avoid delays in completing or arranging to feed to the line.

e) Shipped qty

Shipping as per the planned delivery date is very important to maintain customer trust and reliability. Delay in shipment is leading to a low score OTP (on-time performance) of the factory. Most of the manufacturing industry’s major goal is to meet the delivery date.

f) Delay shipment

Monitoring of delay in shipment, The shipment is delaying hours or day or week. Delaying in shipment is like a forest fire, we should not allow them for long delay or increasing delaying quantity.   

g) Air Shipment

In some situation, Manufacturing, and exporting companies are sending air shipment at their cost. That may be due to delay or some other factor. They spent money to catch the missed date by sending air instead of sea mode. We have to maintain clear details of air shipment

Air Shipment rate = (Total Air shipped Qty / Total Shipped Qty) x 100

h) Cut to shipment ration

Cut quantity is planned followed by order requested and materials available details. Most of the customers are ready to accept plus or minus 3 percentage on purchase order quantity. The shipp ability is 97 % to 103%. Considering this parameter, the Materials arrangement will be for 103% to 105%.   

Cut ship ratio = (Total Shipped Qty / Total cut qty) x 100

i) Order – Ship ratio

This is about how we deliver to the customer followed by purchase order? When delivered less than purchase order quantity then it lost for both ends. Buyers loss the selling opportunity and the manufacturing loss the producing opportunity. Not only that, If the order quantity is reduced by more than 3% the manufacturers have to get approval to ship the goods. Sometimes buyers ask for a discount on shortfall quantity. In some cases, even buyers request sales loss also. On the manufactures side, if the purchased raw materials for 105% of order quantity and shipping less then that also a loss. So, the Order quantity to ship quantity ratio has to be monitored properly.   

Order to ship ratio = (Total Shipped Qty / Total order qty) x 100

4. Ratio Analysis

a) Man to machine ratio

How much manpower we have to each machine is called man to Machine ration. The garment manufacturing industry is inclusive of many verities of employees. In some situations, employees on the roll will be high, but there will not be machine operators. When the company has less direct labor and operators, subsequently the production will be reduced. To monitor this area, The company has to Man: Machine ratio.    

MMR = Total Employees / Total Machines used

b) Piece per machine shift

Pieces per machine shift is a ratio of production. Sometime production line using less or more manpower.    

Pcs per machine shit = Total production / Total Man shift used

c) Pcs per man shift

Pieces per man shift is a ratio of production. Sometime production line using less or more manpower.  

Pcs per Man shit = Total production / Total Man shift used

d) Average production per day

Average production is arrived at to understand the moving average of the production. Based on that planning and book will be done. Also checked with planned and actual for further improvement.

Average = Total production / Worked days

e) Average SMV per garment

Average production is arrived at to understand the moving average workmanship of orders. Based on that average target is fixed. This is an important input for many calculations. And analysis.   

Avg SMV per garment = Sum(S1xP1+ S2xP2+S3xP3,  +SnxPn) / Produced qty

f) Average FOB per garment

Average FOB is arrived from past style quantity and its FOB values. This is helpful detail for re-value planning. Budget planning and understand the current and future orders values.

Avg FOB per garment = Sum(F1xP1+ F2xP2+F3xP3,  +FnxPn) / Produced qty

g) Average CM per garment

Average CM is arrived from past style quantity and its CM values. This helpful detail for revaluing planning. Budget planning and understand the current and future orders values.

Avg CM per garment = Sum(C1xP1+ C2xP2+C3xP3,  +CnxPn) / Produced qty

5. Performance factor

a) Efficiency

Efficiency is one of the key performance indicators, this is required to follow on a regular basis.

Sum(S1xP1+ S2xP2+S3xP3,  +SnxPn) / Sum of available time x 100

Read more about Efficiency  

6. Quality Standard

a) RFT

Right in First Time rating (RFT). This data is collected from quality gates and in-line inspections. Based on this we can identify the line where we have to focus to reduce defects.  

RFT = (Pass in first time / Total quantity produced) x 100

b) Defect rate

Monitoring defects and fixing them is mandatory action in manufacturing industries. The defect should be eliminated at the needlepoint. Which men the defect should be rectified in the source itself. Allowing it to pass the next process simplifies adding rectification cost.

Defect rate = (total defects found / Quantity inspected) x 100

c) FI-OQL (Final Inspection order quality level)

A final inspection is a very important process. Clear details of the final inspection have to be maintained. I.e. Total final inspection contacted. Total defect found Type of detects, Major defect, Miner defect, Defects contributed for a high rate so on.

OQL = (Total defect / Total quantity inspected) x 100

d) Stop order

Due to quality issues, delays, and product safety concerns. The order got stopped and cancel by the buyer. We have to monitor it to avoid this in the future.

e) Buyer Compliance on product

Maintaining the customer’s complaint register is good practice. It has to take a serious point to improve them.

f) Audits

Maintaining the company standard is mandatory. Compliance, safety, social norms, etc. are be maintained well in the factory. Every audit, the outcome should be reviewed to maintain the standard and score. Example, Technical and quality Audit, GMP, CTPACT Score, etc.

g) Statuary and mandatory issues

Following of industries laws and standing orders. Within the company, we have some policies, systems, procedures, etc. the details have to be maintained if any abnormalities found in that area. This will help to take required corrective and preventive action.

h) External customer feedback

Maintaining the internal and external customer feedback and complaints are key input t improvement.  

7. Cost                        

a) Expenditure

The details of spending or outgoing money details. It is included operating costs, wages, rent, service charges, etc.

Expenditure details have to be monitored on a regular basis. Correct analysis and improving action have to be taken on expenditure. Even unorganized expenditure is a burden to the company.  

b) Total sales value

Total Sales value is an indicator to understand the progress of our sales. It arrives from total product sales and selling value of them. It is a helpful factor for loss and profit analysis.  

Sales Values = Total Product shipped x FOB

c) CM Produced (Cost of Manufacturing)

The cost of manufacturing is exclusive of raw material cost. Or we can say the cost of manufacturing.

CM Produced = Total Product shipped x CM  

d) Revenue produced

Revenue is calculated from production stock, which mean how much values good we have in stock is called revenue.

Sales Values = Total Product shipped x FOB

e) Revenue vs Expenditure

Revenue vs Expenditure is live profit or loss checking system.    

Revenue vs Expenditure = (revenue produced – Expenditure) 

f) Cost per head

From over expenditure, how much cost coming per head is called cost per head.

Cost per Head = (Average cost per day / total machine

g) Contribution per head

How much per head contributed in selling is called contribution per head.

Contribution = ( Pcs per machine x Selling value)

Conclusion:

The end goal is creating continual improvement in term of Profit, Customer trust, Stockholder trust, Loyalty, Reliable, Valuable employees, Assets, and reputed names in the industries environment.

 

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