KPI Processes

KPI Processes & Manual for Vertex RMG Division
KPI Name: Operator Absenteeism Percentage

KPI Formula: Total No. of Absent Operator / Total No. of Planned Operator
KPI Holder: Production (50%) + HR (50%)
KPI Report Frequency: Daily / Weekly /Monthly
KPI Level: Line Wise and Day Wise
KPI Target: 2% at Month End avg.
KPI Reporting Deadline: Day End / Week End / Month End
KPI Reporting Processes: 01. The IE Department shall maintain a Data Sheet for Daily & Line Wise no. of
Planned Operator and no. of Present Operator (as per attached format- please
double click on the file icon).
Operator
Absenteeism Report.xlsx
02. The format here calculates the Absenteeism both Day Wise and Line Wise
03. At day end, the IE department shall produce the filled Template.
04. F&A department may time to time cross check the data with HR and/or Payroll
software.
KPI Name: Line Efficiency %

KPI Formula: Earned Minutes / Available Minutes
KPI Holder: Production (100%)
KPI Report Frequency: Weekly & Monthly
KPI Level: Line Wise & Overall
KPI Target: 75%
KPI Reporting Deadline: 1st Day of the Following Week /1st Day of the Following Month
KPI Reporting Processes: 01. The IE Department shall maintain a Data Sheet for Daily Line Wise & Style
wise Production Quantity with Manpower & Hours worked (as per attached
format- please double click on the file icon).
Line Efficiency
Report.xlsx
02. The format here calculates the Line Wise Efficiency %.

03. At every week end, the IE department shall produce the filled Template.
04. F&A department may time to time cross check the data with Production
Report.
KPI Name: Defect Units Rate

KPI Formula: Defect Units by QC / Total Units Produced
KPI Target: 5%
wise Production Quantity with Defect Quantity (as per attached format- please
Line Efficiency
Report.xlsx
02. The format here calculates the Line Wise Defects %.

Report.
KPI Name: RFT %

KPI Formula: No. of Good Units Produced / No. of Total Units Produced
KPI Target: 95%
wise Production Quantity with Defect Quantity (as per attached format- please
Line Efficiency
Report.xlsx
02. The format here calculates the Line Wise RFT %.

Report.
KPI Name: Cut to Ship Ratio

KPI Formula: Shipment Quantity / Cut Quantity
KPI Report Frequency: Monthly
KPI Level: Style Wise & Overall
KPI Target: 98%
KPI Reporting Deadline: 15th Day of the Following Month
KPI Reporting Processes: 05. At the end of each month, F&A department shall reconcile all Closed Orders
within 15th of the Next Month.
06. The F&A department shall collect data for Cut Quantity & Shipment quantity
for each style.
07. From the Order Reconciliation Report, A style wise report shall be generated.
KPI Name: Order to Ship Ratio

KPI Formula: Shipment Quantity / Order Quantity
KPI Holder: Production (50%) + Merchandising (50%)
KPI Target: 100%
02. The F&A department shall collect data for Order Quantity & Shipment quantity
for each style.
KPI Name: Excess Fabrics %

KPI Formula: Value of Excess Fabrics / Value of Fabrics Procured
KPI Holder: Production (50%) + Merchandising (50%)
KPI Target: 2%
02. The F&A department shall generate style wise excess fabrics % and cross
check the data with Stores Department.
KPI Name: Man to Machine Ratio

KPI Formula: Total no. of Manpower / Total No. of Sewing Machines
KPI Level: Overall
KPI Target: 2
KPI Reporting Processes: 01. At the end of each month, F&A department shall collect Total No. of
Manpower from the Payroll Sheet.
02. At the end of each month, F&A department shall collect Total No. of Sewing
Machines from its Fixed Assets Register / IE Department.
03. Then Calculate the Man to Machine ratio.
KPI Name: Indirect to Direct Manpower Ratio

KPI Formula: Total Direct Manpower in Sewing Line (who are Part of the Customer Agreed
SAM/SMV) / Total Indirect Manpower (Total Manpower Minus Direct Manpower)
KPI Level: Overall
KPI Target: 1.1
KPI Reporting Processes: 01. At the end of each month, F&A department shall collect Total No. of Direct
Manpower from Payroll Sheet.
02. At the end of each month, F&A department shall collect Total No. of
Manpower from the Payroll Sheet.
03. Then Calculate the Indirect to Direct Manpower ratio.
KPI Name: Employee Turnover Ratio

KPI Formula: No. of Employees Left / Avg. Total no. of Employees
KPI Holder: HR (100%)
KPI Level: Department wise and overall
KPI Target: 2%
KPI Reporting Processes: 01. At the end of each month, HR department shall fill the attached template
where department wise data to be provided.
Employee Turnover
Report.xlsx
02. HR department shall mention what was the no. of employees at the beginning
of the month, No. of Employees left during the month and No. of employees
newly joined during the month.
03. The template calculates the Employee Turnover Ratio.
KPI Name: Shipment Failure Rate %

KPI Formula: No. of Units Not Passed at Inspection / No. of Total Units Placed for Inspection
KPI Holder: QA (100%)
KPI Target: 0%
KPI Reporting Processes: 01. The QA Department shall maintain a Data Sheet for Daily Inspection /Re
inspection and Shipment failures by Style wise (as per attached format- please
Shipment Failure
Rate.xlsx
02. The format here calculates the Style Wise Shipment %.

03. At every week end, the QA department shall produce the filled Template.
04. F&A department may time to time cross check the data with Shipment and
Production Report.
KPI Name: Machine Utilization Rate

KPI Formula: Total Machines Use Hours / Total Available Work hours
KPI Holder: IE (100%)
KPI Level: Day Wise
KPI Target: 95%
KPI Reporting Deadline: 2nd of the following Month
KPI Reporting Processes: 01. The IE Department shall maintain a Data Sheet for Daily Machine Utilization
(as per attached format- please double click on the file icon).
Machine Utilization
Rate.xlsx
02. The format here calculates the Machine utilization % day wise.
03. At month end, the IE department shall produce the filled Template.
04. F&A department may time to time cross check the data with Fixed Assets
Register as well as physically.
KPI Follow up Table:

Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
KPIs
Operator Absenteeism Percentage Daily……..Daily…….Daily………Daily………Daily………Daily………Daily
Line Efficiency Y
Defect Units Rate Y
RFT % Y
Cut to Ship Ratio Y
Order to Ship Ratio Y
Excess Fabrics % Y
Man to Machine Ratio Y
Indirect to Direct Manpower Ratio Y
Employee Turnover Ratio Y
Shipment Failure Rate Y
Machine utilization Rate Y

KPI Processes

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KPI Processes & Manual for Vertex RMG Division

KPI Name: Operator Absenteeism Percentage

KPI Name: Line Efficiency %

02. The format here calculates the Line Wise Efficiency %.

KPI Name: Defect Units Rate

02. The format here calculates the Line Wise Defects %.

KPI Name: RFT %

02. The format here calculates the Line Wise RFT %.

KPI Name: Cut to Ship Ratio

KPI Name: Order to Ship Ratio

KPI Name: Excess Fabrics %

KPI Name: Man to Machine Ratio

KPI Name: Indirect to Direct Manpower Ratio

KPI Name: Employee Turnover Ratio

KPI Name: Shipment Failure Rate %

02. The format here calculates the Style Wise Shipment %.

KPI Name: Machine Utilization Rate

KPI Follow up Table:

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