Controlling

GENERAL MANAGER

Gross Margin: Gross Margin is the difference between revenue and COGS. By tracking Gross Margin, the general manager can identify areas where the company can increase revenue or reduce COGS to improve profitability.

Formula: Revenue – Cost of Goods Sold (COGS)

PRODUCTION, QUALITY AND PACKAGING SUPERVISOR

Scrap rate: Monitor the amount of scrap material generated during the production process and set a target to reduce it by 5% within a month. This will help in identifying areas where waste is being generated and taking corrective actions to minimize it.

Formula: (Amount of scrap material generated) / (Amount of raw material used)

PRODUCTION EMPLOYEE

Throughput: This KPI measures the amount of goods that are produced within a given time period. By increasing throughput, you can produce more goods in less time and reduce production cycle time. To track this KPI, you can calculate the total amount of goods produced within a given time period and monitor how it changes over time.

Formula: Total output / Time

PACKAGING EMPLOYEE

Cycle time per unit: Measure the time taken to complete the packaging process for each unit. Set a target for reducing the cycle time by 10% and track progress against that target.

Formula: Total packaging cycle time / Total number of units packaged To reduce cycle time by 10%

(need to reduce the numerator (total packaging cycle time) by 10%.)

COSTUMER SERVICES AND SALES EMPLOYEE

First Response Time (FRT): measures the amount of time it takes for an employee to respond to a customer inquiry from the moment it is received. This KPI is an important indicator of the employee's responsiveness and efficiency in handling customer inquiries.

To implement this KPI, you can set a target response time of 24 hours or less for all customer inquiries. You can then measure the time it takes for the employee to respond to each inquiry and calculate the average response time.