Metric of the Month: Value of Plant Shipments per Employee

Communicating customer expectations and market challenges to employees prepares them for optimal performance

January 2016 Value of plant Shipments Per Employee 56a68fd194181

In manufacturing, cost alone is not sufficient for evaluating performance. To understand the efficiency of manufacturing processes, a helpful measure is the value of plant shipments per employee. The value of plant shipments per employee is the most recent fiscal year’s approximate currency value of plant shipments per employee. American Productivity and Quality Center (APQC) research shows that top performers ship over $200,000 more product per employee than bottom performers.

It is often difficult to motivate employees to contribute ideas and energy to make the factory more productive. Therefore, manufacturing managers should look for new approaches to motivate people and increase employee engagement. Communicating customer expectations and market challenges to all employees prepares them for optimal performance. Simpler, more transparent systems that automatically collect and transmit transaction data can speed up performance measurement, and the flow of information to internal and external stakeholders. This can lead to faster implementation of performance improvement measures.

The data above originated from APQC’s Open Standards Benchmarking in manufacturing, which contains metrics related to manufacturing performance as collected from participating organizations. These metrics can help your organization see where it stands in relation to its peers and identify potential areas for improvement.

APQC helps companies work smarter, faster and with greater confidence. The organization is a proponent for benchmarking, best practices, process and performance improvement, and knowledge management. APQC’s structure as a member-based nonprofit makes it a differentiator in the marketplace. The organization partners with more than 500 member organizations worldwide in all industries. For more information, please visit www.apqc.org.

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