How to Calculate Performance in NetSuite

NetSuite is a comprehensive cloud-based business management system that offers a wide range of functionalities for businesses. One key area where NetSuite proves useful is in manufacturing performance tracking. By accurately calculating manufacturing performance, businesses can gain valuable insights into their operations and make informed decisions to improve efficiency and productivity.

Value of Performance Metric When Calculating OEE

When it comes to calculating manufacturing performance, one crucial metric to consider is Overall Equipment Effectiveness (OEE). OEE measures the efficiency of equipment and provides a holistic view of its utilization, performance, and quality. By quantifying OEE, businesses can identify areas for improvement and develop strategies to optimize their manufacturing processes.

One key aspect of OEE is that it takes into account three critical factors: availability, performance, and quality. Availability refers to the amount of time the equipment is actually running and producing good parts. Performance looks at the speed at which the equipment is operating compared to its maximum potential speed. Quality measures the number of good parts produced in relation to the total number of parts produced. By considering all three factors together, OEE offers a comprehensive assessment of equipment efficiency.

OEE can be used to set realistic performance targets and track progress over time. By establishing baseline OEE values, companies can establish benchmarks for improvement and monitor the impact of any changes or investments made to enhance manufacturing operations. This data-driven approach enables businesses to make informed decisions and prioritize initiatives that will have the greatest impact on overall equipment effectiveness.

Step-by-Step Guide to Calculating Performance in NetSuite

Step 1: Access NetSuite

1. Log in to NetSuite: Use your credentials to log into the NetSuite platform. Your access level will determine which modules and features you can utilize.
2. Navigate to the Manufacturing or Production Management Module: This module contains the tools needed to manage and monitor production activities, where you’ll find the data necessary for performance calculation.

Step 2: Gather the Required Data

To calculate performance, you need three critical data points:

1. Ideal Cycle Time: This is the standard time it takes to produce one unit under ideal conditions.
   • In NetSuite, navigate to the Routings or Manufacturing Routing section.
   • Select the relevant item or product.
   • The ideal cycle time is typically specified in the routing details or within the operation steps associated with that item.
2. Total Count: This refers to the total number of units produced during the run time.
   • Go to the Work Orders or Production Orders section.
   • Find the specific work order or production run you are analyzing.
   • The total count (quantity produced) is usually listed in the Work Order Completion or Production Details section.
3. Run Time: This is the total time the machine or production line was actively running to produce the total count.
   • Within the same work order or production details, locate the Run Time data, often labeled as Actual Run Time or Production Time.
   • Ensure that this time excludes any downtime or stoppages for an accurate performance calculation.

Step 3: Perform the Calculation

With the necessary data collected:

1. Open a Calculator or Spreadsheet: While NetSuite is powerful, it may not automatically calculate this specific performance metric. You can perform the calculation using a simple calculator or in a spreadsheet application like Excel.
2. Calculate Performance:
   • Multiply the Ideal Cycle Time by the Total Count.Divide the result by the Run Time.

Step 4: Record and Analyze the Performance

1. Document the Calculation: Enter the calculated performance percentage into a report, spreadsheet, or directly into NetSuite if your system has custom fields or dashboards for performance metrics.
2. Compare Against Targets: Assess the calculated performance against your organization’s targets or industry benchmarks to determine if your production process is operating efficiently.
3. Identify and Address Variances: If the performance is below expectations, use NetSuite’s reporting tools to drill down into potential issues such as machine downtime, quality defects, or inefficiencies in the production process.

Step 5: Continuous Improvement

1. Monitor Performance Regularly: Continuously track performance data over time to identify trends, recurring issues, or areas needing improvement.
2. Implement Improvements: Based on your findings, take action to improve performance. This could involve equipment maintenance, process optimization, or operator training.
3. Leverage NetSuite Features: Consider using NetSuite’s advanced features like Work Order Management or Advanced Manufacturing to automate data collection, streamline calculations, and improve accuracy in tracking production performance.

Setting Up NetSuite for Manufacturing Performance Tracking

Before you can leverage NetSuite for manufacturing performance tracking, you need to set up the system accordingly. Here are some key steps to consider:

Step 1: Define Performance Scorecards

NetSuite allows you to create custom performance scorecards tailored to your business needs. These scorecards become the foundation for performance calculations and provide a comprehensive view of your manufacturing operations.

When defining performance scorecards, consider including key performance indicators (KPIs) such as overall equipment effectiveness (OEE), production yield, and cycle time. By tracking these metrics, you can gain valuable insights into the efficiency and effectiveness of your manufacturing processes. Additionally, you can set benchmarks and goals within the scorecards to drive continuous improvement initiatives.

Step 2: Configure Data Collection Methods

Depending on your manufacturing environment, you may need to configure NetSuite to collect data from different sources. Whether it’s manual data entry, IoT sensors, or integration with third-party tools, NetSuite offers the flexibility to accommodate various data collection methods.

For a more advanced data collection approach, consider implementing machine learning algorithms that can analyze real-time data streams to predict maintenance needs or optimize production schedules. By harnessing the power of data analytics, you can make data-driven decisions that enhance overall manufacturing performance.

Step 3: Set up Real-Time Alerts

In addition to monitoring performance metrics, it’s essential to have real-time alerts in place. NetSuite enables you to configure alerts based on predefined thresholds. By receiving instant notifications, you can address performance issues promptly and minimize downtime.

When setting up real-time alerts, establish escalation protocols to ensure that critical issues are addressed promptly. By defining clear escalation paths and responsibilities, you can streamline communication and problem resolution processes within your manufacturing operations. Additionally, consider integrating NetSuite with communication tools such as Slack or Microsoft Teams to facilitate seamless collaboration among cross-functional teams.

The Role of Data Collection in Performance Calculation

Data collection plays a pivotal role in accurate performance calculation. Without reliable and timely data, performance metrics become inaccurate and ineffective. NetSuite’s robust data collection capabilities ensure a seamless flow of data from various sources, enabling businesses to obtain precise insights into their manufacturing operations.

Furthermore, the quality of data collected can significantly impact the decision-making process within an organization. By capturing data points such as production output, machine downtime, and material usage in real-time, companies can identify inefficiencies and implement corrective measures promptly. This proactive approach to data collection not only improves operational efficiency but also enhances overall performance management strategies.

NetSuite’s data collection tools offer customizable dashboards and reports that provide a comprehensive overview of key performance indicators. This visibility allows stakeholders at all levels of the organization to monitor progress towards goals and make data-driven decisions. By leveraging accurate and up-to-date data, businesses can optimize their processes, reduce costs, and ultimately drive sustainable growth.

Integrating Third-Party Tools like Mingo Smart Factory for Accurate Performance Insights

How many steps does it take to calculate performance within the Mingo Smart Factory dashboard? The answer is one.

In some cases, businesses may require additional functionalities or specialized tools to achieve a more comprehensive view of their manufacturing performance. NetSuite allows seamless integration with third-party tools like Mingo Smart Factory. These tools offer advanced analytics and AI-powered capabilities that enhance performance insights and provide actionable recommendations for process optimization.

The integration of Mingo Smart Factory with NetSuite brings a host of benefits to manufacturing operations. With real-time data synchronization between the two platforms, businesses can gain deeper visibility into their production processes, identify bottlenecks, and make informed decisions to improve overall efficiency. The AI algorithms employed by Mingo Smart Factory can analyze vast amounts of data to predict potential issues, optimize production schedules, and ultimately boost productivity.

Calculating manufacturing performance in NetSuite is a valuable process that empowers businesses to optimize their operations. By following a step-by-step approach, setting up the system effectively, and leveraging data collection capabilities, NetSuite enables accurate performance measurement and valuable insights. Whether it’s monitoring OEE, configuring performance scorecards, or integrating with third-party tools, NetSuite provides a robust platform for manufacturing performance tracking. By harnessing the power of NetSuite, businesses can make informed decisions, enhance efficiency, and drive continuous improvement in their manufacturing processes.

Ready to elevate your manufacturing performance with a system that’s both powerful and user-friendly? Look no further than Mingo Smart Factory, the easiest to use and fastest to implement manufacturing system available. With its plug-and-play capability, Mingo Smart Factory can be up and running in your operations in a matter of days, not months. Tailored to fit your unique manufacturing needs, our platform empowers operational teams to manage processes efficiently without the need for dedicated IT support. Whether you’re looking to connect to existing equipment or require hardware for data collection on older machines, Mingo Smart Factory has you covered. Don’t let complexity hold you back from optimizing your manufacturing performance. Talk to an Expert today and discover how Mingo Smart Factory can support your business’s growth and productivity.