In the API and Chemical business the profits flow from manufacturing unit. It is the manufacturing unit which consumes most of the capital in the form of inventory and capital assets.Approx 80% of the company overheads come from the manufacturing unit. It is therefore essential to keep the manufacturing unit as nimble and flexible as possible.
In order to bring the overall effectiveness to the business unit, a single parameter of profitability at the end of a period is not a sole indicator of the good health of the business unit. Thus, it is essential to develop parameters for the overall performance of the manufacturing unit.
We propose that customers employ Scorecards for monitoring its manufacturing units.
Some of the parameters which will constitute the part of the balanced Scorecards are given below:
- Loss Time Accidents
- Adverse Notices from Government and Regulatory Agencies
- Inventory levels
- Environmental compliance
- On-Time in Full (OTIF) and RFT (right first time).
- Cost Out
- Continuous Improvement (CI)
- Assets Utilization & Asset Efficiency
- Rate of Quality failure