Process Metric
TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
What is Process Metrics? Process metrics are quantifiable measurements utilized to monitor the performance of an organization. They are unlike key performance indicators ( KPIs) in which they simply measure how well a certain process performs and whether or not it is meeting the defined objectives. Process metrics provides more accessible and relevant information for managers and directors to better study and understand. KPIs, on the other hand, are more descriptive than quantitative and give companies a snapshot of performance relative to their goals, missions, and processes. The terms "key performance indicators" and "process metrics" often are used interchangeably and sometimes it is hard to draw the distinction between the two.
The objective of process metrics is to aid human resource managers (HRM), product managers, and manufacturing managers (PM) in the determination of what resources are necessary and available to accomplish company goals and objectives. A good example of process metrics is manufacturing inventory software projects. In order to determine the amount of materials and/or supplies that have to be replaced, most organizations must make manual estimates and estimations. In addition, the process of estimating can become a highly frustrating and time-consuming activity for many people in the organization. By using proper methodologies, tracking software, and process metrics, the organization can more easily and quickly determine the accurate quantity of inventory to be replaced.
Another common example of process metrics is Lean Manufacturing, which utilizes the concept of lean to improve both overall customer satisfaction and overall production efficiency. Lean emphasizes the importance of decreasing cycle time and increasing throughput through a succession of small, action-oriented steps. A good example of a Lean business process is the streamlined shipping process associated with the company's international shipping. Lean can also reduce cycle times in non-standard processes such as those that involve the assembly of assembly parts or furniture.
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