Stop Guessing, Start Tracking: KPIs for Metalcasting
By Carol Gorbitz, Senior Software Architect and Business Analyst
Most metalcasting operations leaders think they know how their shop is performing — they “have a sense” for it. But when asked, “What’s your scrap this quarter?” or “How is OTD trending?” the answer requires hunting through spreadsheets, piecing together email chains, or just a best guess. That gap between what you “sense” and what you can prove with data is exactly what KPIs are built to close.
Why are KPIs Important?
Key performance indicators (KPIs) are measurable values that show how effectively your company is achieving key business objectives. Implementing KPIs in your company means you can set goals, create a strategy to reach them, and measure performance along the way. Key performance indicators can monitor things such as operational efficiency, material yield, and profitability. Essential metrics may include Overall Equipment Effectiveness for asset utilization, Scrap Rate / Yield to minimize costly alloy waste, and Cost per Ton to track production efficiency. More than just numbers on a dashboard, KPIs act as a vital compass, helping leaders make data-driven decisions instead of relying on assumptions, and keeping entire teams aligned on what success actually looks like. Tracking these indicators can provide a clear picture of your company’s health and bottom line.
Setting up goals for your KPIs can be useful to gauge different activities within your organization. While every operation is different, four areas tend to drive the most impact for metalcasters:
- Production & Efficiency
- Overall Equipment Effectiveness (OEE) and Machine Utilization
- Machine Downtime
- Quality & Waste Management
- Production Yield Rate
- Scrap Rate
- Financial & Cost Control
- Cost per Ton / Cost per Unit
- Gross Margin Percentage (GMP)
- Logistics & Supply Chain Management
- Customer On-Time Delivery (OTD)
- Supplier Lead Times
How Odyssey ERP Supports KPI Tracking
The good news: if you’re running your shop on Odyssey ERP, the infrastructure to track all of this is built in with tools to monitor your goals across multiple levels, from company-wide goals down to individual machines and products. Once the KPIs are activated and goals are entered, the information flows into Odyssey’s stock Data Views and Dashboards, or you can create your own to meet your specific requirements.
Company Goals are high-level KPIs tracked at the company level. A predefined list of areas can optionally be activated for tracking. Examples include Sales/Returns, Production/Scrap, Customer and/or Supplier On-Time Delivery, and Open Capital Appropriations, to name a few. Once activated, annual and period goals can be entered, and the system can start accumulating the actual KPI data associated with the area — either as a running total or by year and period for comparisons against the goals that you set. The KPI data tracked depends on the selected area and will consist of Dollars, Cost, Quantity, Weight, Count, and Percent.
Key Data Goals go a level deeper, defined at the master table level — by Product, Customer, Tooling, Equipment, or Operation/Machine. For example, at the Product level, you can set Sales/Returns or Production/Quality goals to compare to your actual sales or production activity by year or period. At the Operation/Machine level, you can set Production/Run Time or Efficiency goals used to determine the machine’s OEE by year or period.
User-Defined Goals cover anything outside of Odyssey’s built-in tracking. Examples include safety statistics, employee training accomplishments, health care costs, and more. These can be added and maintained from the Company Goals screen. User-Defined Goals can be either a running total or a year or period total. Because Odyssey doesn’t accumulate the actual KPI data for these goals, the actuals can be entered or imported from your spreadsheets or other sources that you maintain manually.
Whether you're tracking five metrics or fifty, the goal is the same: to stop running your operation on instinct alone and start running it on evidence. The most important step is simply deciding which numbers matter and starting there.
If you're interested in learning more about how Odyssey ERP supports your operation's goals, we'd love to help — reach out to our team.
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