Improve Operations Management. Learn how to develop the metrics that will help you measure and monitor what works for your business and what does not. All businesses have several key metrics that can let the owner how the business is performing. These metrics can be used in all areas. Sales, production, quality, delivery etc, can be measured. Knowing what to measure is critical for making good decisions.
Examples for each function area are listed below.
- Sales – Number of leads generated, closing percentage, and average revenue per order.
- Production – Pieces produced per hour, material yield, labor hours and labor dollars.
- Inventory – Inventory turnover, inventory age, and inventory value.
- Quality- Customer returns or call backs, average cost of rework and repair.
- Accounts receivable – Average days outstanding, collections compared to payment terms.