engineering metrics examples

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By contrast, if the same sub-assembly weighs 8 lbs. These charts are based on real data and are a snapshot taken about eighteen months into an Agile transformation. R&D/NPI costs are the cost of conducting the development process which include items like engineers’ salaries and benefits, cost of testing, any outside expert consulting used to support that development project, etc. 2. These engineers typically deal with design tasks driven by warrantee issues, cost reduction activities, manufacturing support, and engineering custom applications based on your standard product. Process Performance Metrics, also called KPI’s (Key Performance Indicators)focuses on how the task is being performed by measuring performance and if individual goals are being achieved. Again, you compare this to last year’s number to see if you are improving. When you compare this year’s ratio to last year’s ratio, the difference is your productivity gain or loss. The total cycle time measures the time it takes for a customer order to start and … We will identify R&D/NPI productivity metrics next. Metrics ou Should Know to nderstand our Engineering Efficiency 10 fixing the source of truth in the first place. Reduce costsThese goals ca… 3.3 Examples of economic metrics When a systems approach is used for technology evaluation, the financial dimension of the system life cycle cannot be omitted. You then calculate your existing 90 kW unit and 45 kW unit support frame cost per kW are $11/kW and $15/kW respectively. Then take that ratio and compare it to the ratio of prior APU designs to see whether or not you are improving. Various engineering productivity measurements have been used in previous research. Number of revisions (Depending on your business, revisions could be a bad thing), Customer satisfaction (Engineering’s customer, not end user), Supplier defect rate (often the supplier is whoever is supplying specs and info to Engineering). Sarah and Andy picked as Emerging manufacturing leaders! September 11, 2014 at 1:08 pm Test metrics related to number of scripts automated, number of scripts passing/failing can be included. The seconds is Oklahoma Oil & Gas Expo held in Oklahoma City, OK. CEOs often ask their engineering leaders to report productivity metrics in order to assess Engineering’s contribution to the business. For example, you are designing the turbine section for a turbo charger intended for a 1.4 littler engine. What’s worse is those that don’t leave, but instead become a cancer upon your organization, until you take action. Some are very valuable, some not so much. Velocity 2. But that’s just eyeballing it and it’s hard to quantify cost effectiveness when you are eyeballing it. Nirav. Test automation agains… Typically, when you measure that problem area, it magically starts to fix itself! This will be more of a post R&D metric based on hitting cost-targets and the subject of a future blog post, stay tuned. Changing metrics keeps employees on their toes. No doubt, there’s often more variables in Engineering’s success that clouds that “perfect” result, but we should strive for it none the less. Make sure you select a few from each category so that your strategy is well balanced across the organization. For Engineering, think of an engineer as a continually developing employee who will take years, if not decades, to become fully trained and proficient in a field of study. They are used to quantify defects, cost, schedule, productivity and estimation of various project resources and del… Learn more. Use them not only to look good but also to help your Sustaining and R&D (NPI) engineering teams make better design decisions every day and quantify their success. Simple designs are rewarded by this metric. Over the last five years, organizations have started to define and embrace the capabilities of performance engineering, recognizing that their systems are growing so complex that it's not enough to simply tell the computers or the individuals behind them to "run fast." I have known companies that have done this for several years in a row. If you do a skills chart and find that your employees are highly qualified in each skill…then you probably don’t have the right skills listed. Your company has never had a turbo this small. R&D efforts are often geared towards a portion of the product not the whole product, but you can use this metric on an entire product or portions of the product and compare with prior designs to see if your cost effectiveness is getting better or worse. The Sustaining Engineering team is the portion of Engineering that focuses on supporting your current products. Some examples of process style metrics to measure: Quality metrics are pretty easy to discern, anything that relates to the quality of the product coming out of Engineering or the quality of information going in. Some companies may prefer to use the lowest $/kW ratio for comparison rather than the average. The saying is “What’s measured, get’s managed”, a reverse to that could be “Don’t measure what you don’t manage”…if it’s not important to you to run your day to day department or company, then why measure it? We help companies improve their processes through automation. Increase return on investment (ROI) 2. Number of Clients. Hold your IT to the same level as your Industrial Maintenance person and use metrics to determine if computer downtime is costing you money or causing a bottleneck. As you make these investments in process, quality, and technical improvements you need to keep your Engineers/Designers engaged and employed at YOUR company. The first three metrics listed below are what I call “general metrics”, these are elements that you should measure but how you measure and what you measure will vary depending on your company and the role engineering plays. And an awesome showpiece in the Tulsa World. Sources: 1)“A few words about Metrics” by John Stark; http://www.johnstark.com/wmet.html 2)“Cost of Employee Turnover”; http://www.isquare.com/turnover.cfm, 5 Key Metrics for Engineering Departments, Rye Design llc, 802 West Blue Starr Drive, Claremore, OK, 74017, United States, "Hey!, real quick, i'm glad you're here! If you like what you see, sign up for our newsletter! It a number ranging from -100… Sign up with your email address to receive news and updates. increase quality). Why do we subtract discretionary spending? I tend to stick with a six-month rolling window because if you go much beyond that, things have changed so much as to be irrelevant to what the team is doing or working on now. However, for companies that have a robust R&D/NPI practice this expense, even if discretionary, can be significant and companies struggle to figure out if they are truly productive in their NPI organizations. This of course breaks down if you are designing products with a particular emphasis on weight. You will need to instrument the engineering team to track their time in order to create accurate metrics for these KPIs. A benefit of this is if you happen to choose the wrong metric. Example KPIs. Listed below are 5 areas of metrics you should consider for your engineering department. In the case of companies that do not have two separate engineering teams, you have to estimate the portion of expenditures dedicated to NPI and subtract that from the total. The Realistic component of the acronym can present a significant area of challenge. Christian Knutson, P.E., PMP is a leadership coach and strategy consultant who works with engineers and A/E/C organizations to incorporate leadership into everything they do in order to generate excellence. How do you know whether or not your design is cost effective? Total Cycle Time. They are re-designing a component of it to make it better or more efficient or improve upon it in some other way. R.J. Metrics, 16 Dec. 2014. But, with an R&D (NPI) project, there is no current cost. for the 2.0 liter engine and when you estimate the cost of turbine section for the 2.0 liter engine turbo, using the same cost estimating tool, it turns out to be $120, then the cost to weight ratio is 15 (Cost effectiveness = (15-20)/15 = – 33%). Engineering departments and companies become very comfortable with accepting less than perfect results. Thanks to MoreClaremore.com for doing a very nice article on our business! Measure of Deliverables = Number of unique projects or Quantity of items sold. The following are common types of process metrics. Manage workloads 4. Work quality metrics say something about the quality of the employee’s performance. effectiveness of your physical product designs. The engineering team may argue that they have no control over revenues or what gets sold but, they do impact the success of the product in the market place. Turnover rate and Absenteeism will tell you all you need to know. Flow efficiency 7. As long as you are continually looking at the data collected and making adjustments, you can do no wrong. Release burndown 4. Thank you for your interest. These are metrics that pertain to Process Quality. Companies spend gobs of money collecting numbers and data they will never see! So, these general links to revenue/sales should not be so easily dismissed. You compare it to a similar part that does a similar thing and is about the same size on another project and from that you can see whether it is cost effective or not. They are used to measure the efficiency and effectiveness of various processes. Identify areas of improvement 3. These two groups require different metrics because they have different goals and outputs. I’ve seen companies that invest heavily in IT and those that do not, when it comes to Engineering those that don’t, suffer. There are literally hundreds of metrics that business leaders can use to run their business today. The goal of tracking and analyzing software metrics is to determine the quality of the current product or process, improve that quality and predict the quality once the software development project is complete. Your business and customers change month to month, year to year, so should what you measure from your employees. 10 Sept. 2015. Paresh Mahajan. Common system engineering metrics include timeliness, efficiency and effectiveness, performance requirements, quality attributes, conformance to standards, and parsimonious use … I’m also a strong believer in ever changing metrics. visibility you need to drive your engineering organization to peak performance. On top of that, you may invent your own ones that match your project best. For example, Lines of Code (LOC) measure. Look into developing a skills matrix and training budget, as well as training days that engineers use to sharpen their skills. Hidden charts offers no challenge, and employees often have an area they think they are skilled in, when you feel differently. Say you measure quality but that has a negative effect on your on time delivery, then you can change it. NOTE: The next two metrics use R&D/NPI costs as the basis for the metric. By now I’m convinced that tracking and analysing these KPIs adds value. Manhours per 1,000 software lines of code (KSLOC) Manhours per function point; Software problem reports (SPR’s) before release per 1,000 software lines of code (KSLOC) SPR’s after release per KSLOC; Design review errors per KSLOC; Code review errors per KSLOC; Number of software defects per week; SPR fix response time; Product Assurance Hybrid metrics:Hybrid metrics are the metrics that combine product, process, and resource metrics. Think about developing a compressor family, same basic frame, similar rotating components, but it provides different behavior at different rotating speed, so you design with a falter peak efficiency curve. , they must serve the same sub-assembly weighs 8 lbs we also use metrics... Looks at and wasted time spent collecting…keep them fresh other way keeping software green! Measure the Efficiency and effectiveness of various processes appraisal by the number you LOOK at an R & (! 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Year, so should what you see, sign up with ways you can change.... How do you know whether or not you are eyeballing it and it ’ s ratio, new. Some reports ) project best together relating to specific higher-level goals and objectives (.. Turbo you have currently is for a 1.4 littler engine fixing the source of truth in family! Performance Indicator Examples & Definitions be included a lot from others like you comparison see... Metrics to help teams improve in … 18 Key performance Indicator Examples & Definitions to of! Of metrics is the Wichita Industrial Tool Show held in Wichita, KS gain or loss been! Are the metrics that incentivize good habits and provide meaningful insight can included... By contrast, if we could be called “ value Added time ” that your engineers spend on.! Project, there is no current cost, and resource metrics visibility you need drive..., year to year, so should what you measure quality but that has a negative on. 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