Metrics: practical guides, worked calculations and shop-floor examples. Browse every article in this topic and start with the main guide.
OEE: How to Calculate Overall Equipment Effectiveness
Learn how to calculate OEE with the formula, a worked one-shift example, the six big losses, what a good OEE score is…
Break-even point: how to calculate it, with example and chart
Learn to calculate the break-even point in units and revenue, the contribution margin and the margin of safety, with…
First pass yield and RTY: how to calculate them
Learn to calculate first pass yield (FPY) and rolled throughput yield (RTY) with a three-step example, the hidden fac…
Cost of quality: the PAF model with an example
Understand the cost of quality and the PAF model: prevention, appraisal, internal and external failure, a $200,000 mo…
Production capacity: utilization and efficiency explained
Understand design capacity, effective capacity and actual output, how to calculate utilization and efficiency with an…
NPV, IRR and payback: how to evaluate an investment
Learn to calculate NPV, IRR and simple and discounted payback with a worked example, decision rules, Excel formulas a…
Takt Time: How to Calculate the Ideal Production Pace
Learn how to calculate Takt Time, the difference between Takt Time, Cycle Time, and Lead Time, and how to use it to bala…