Page 14 - MetalForming March 2014

Best Practices
By Bob Dobrowsky
Survey Says: The Metalforming Industry is Strong
The 2013 Precision Metalforming Association (PMA) Benchmarking Report for the Metalforming Industry shows that the overall health of the industry is strong. While concerns about the future still exist, there’s much to be positive about. Here’s an overview.
Survey Background
Seventy-nine companies participated in PMA’s annual survey, which monitors more than 50 separate metrics in the
Bob Dobrowsky is a partner with the Cleveland office of Plante Moran, PLLC, and is one of the leaders of the firm’s Ohio Manufacturing and Distribution prac- tice. He has been delivering professional services to privately held companies for the past 21 years. Bob has authored the annual PMA Benchmarking Report since 2003, serves as a member of the board of directors for PMA’s Cleveland district, and has pre- sented at various district level meetings. www.plantemoran.com
Bob.Dobrowsky@plantemoran.com
Management Metrics
• Training
• Safety
• Inventory Turnover
• Receivables Turnover
• Success Rate on New Quotes
• Unexcused Absences per Hourly Production Employee
• Percent Equipment Under Preventive Maintenance
• Employee Turnover Ratio
• Capital Expenditures as a Percent of Value Added
• Earnings Before Interest and Taxes (EBIT)
• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
Quality Metrics
• Customer Rejections
• Internal Failure Rates
• On-Time Delivery Performance
• Supplier Reject Rate on Incoming Items
• Supplier On-Time Delivery Rate
• Cost of Quality as a Percentage of Sales
Productivity Metrics
• Average Setup Times
• Capacity Utilization
• Sales per Employee
• Value Added
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12 MetalForming/March 2014
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