ISO 18828-4:2018

INTERNATIONAL ISO
STANDARD 18828-4
First edition
2018-06
Industrial automation systems
and integration — Standardized
procedures for production systems
engineering —
Part 4:
Key performance indicators (KPIs) in
production planning processes
Systèmes d'automatisation industrielle et intégration — Procédures
normalisées pour l'ingénierie des systèmes de production —
Partie 4: Indicateurs de performance clé dans les processus de
planification de la production
Reference number
©
ISO 2018
© ISO 2018
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ii © ISO 2018 – All rights reserved

Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms, definitions, symbols and abbreviated terms . 1
3.1 Terms and definitions . 1
3.2 Symbols and abbreviated terms. 4
4 Key performance indicators in production planning processes . 6
4.1 Production planning KPI system . 6
4.2 Formal definition of key performance indicators . 7
5 Descriptions of key performance indicators . 8
5.1 General . 8
5.2 Process-oriented key indicators .10
5.2.1 Time indicators .10
5.2.2 Process indicators .15
5.2.3 Information indicators . .21
5.3 Result-oriented key indicators .26
5.3.1 Manufacturing .26
5.3.2 Assembly .28
5.3.3 Layout .30
5.3.4 Logistics .32
Annex A (informative) KPI overview .34
Bibliography .38
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
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electrotechnical standardization.
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described in the ISO/IEC Directives, Part 1. In particular the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
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URL: www .iso .org/iso/foreword .html.
This document was prepared by Technical Committee ISO/TC 184, Automation systems and
integration, Subcommittee SC 4, Industrial data.
A list of all parts in the ISO 18828 series can be found on the ISO website.
iv © ISO 2018 – All rights reserved

Introduction
Ever-growing demands, such as increasing product and process complexity (recognizable by the high
number of versions, short product lifecycles and greater time and cost pressures), define the key
challenges faced by modern manufacturers. As a result, companies resort to ever-more sophisticated
tools for managing complexity and improving transparency. Performance management systems provide
aggregated quantitative depictions of the current situation via key performance indicators (KPIs),
thereby creating the basis for improvement and decision-making processes. Consequently, the aim of
using KPIs is to consistently analyse current production processes in order to control and manage them
after start of production (SOP). In this way, KPIs provide a base of information for understanding and
improving manufacturing performance.
NOTE 1 See for example ISO 22400.
Beyond the uniform set of core key indicators, many companies already successfully utilize performance
management based on a self-defined, comprehensive range of measurable values. In this process, a
target-oriented, company-specific interpretation of key indicators is often performed.
Considering the product development process in greater detail and taking into account the planning
tasks before SOP, it is recognizable that the definition and establishment of standardized key indicators
focuses on the phase after SOP. Figure 1 details the key tasks in this area based on the product lifecycle.
Figure 1 — Quantitative depiction of use of key performance indicators in product lifecycle
The range of process management indicators available in the production planning phase is quite small,
as indirect planning tasks have rarely been recorded or managed up to this point. Consequently, there
is no standardized set of basic key planning indicators before SOP.
The lack of adequate control parameters necessitates the development of a framework to monitor
and improve production planning processes. Key indicators described in this document concern
performance tracking of planning processes for engineering production systems.
NOTE 2 This is based on the planning disciplines and stage of development of the planning process in
accordance with ISO 18828-2.
The KPIs for production planning generally help to advance the process of standardizing the quality
of production process monitoring. The key indicators are abstracted in such a way that they can be
consistently applied, according to their definition, in the various planning areas and, if properly
adapted, in other areas as well. The key indicators by themselves cannot be used to measure process
performance. They can only be set in relation to, and used for, the purposes of continuous comparison
with process improvement if thresholds are defined and applied. Definition of the relevant thresholds
therefore depends on the particular company. Regarding the production planning processes, it is
necessary to pay more attention to the system boundaries of the analysis in order to ensure proper
performance management. Key indicators often have a general trend, in terms of optimization taking
place in general, or even a theoretical optimum existing. However, they require in particular an
examination in relation to the company specifically and an application-based interpretation carried out
previous to their utilization.
vi © ISO 2018 – All rights reserved

INTERNATIONAL STANDARD ISO 18828-4:2018(E)
Industrial automation systems and integration —
Standardized procedures for production systems
engineering —
Part 4:
Key performance indicators (KPIs) in production planning
processes
1 Scope
This document specifies a set of key performance indicators in production planning, which allow
comparison and monitoring of the production planning process in a standardized framework.
As a first step, the utilization of the KPIs is elaborated in order to organize the indicators in a multi-level
system taking different ranges of the planning process into account. This development of a multi-level
system represents the core of this document. The scope of the planning processes discussed in this
document is limited to production planning for products in series production. Only tasks carried out
within the production planning process are considered in this approach.
All key indicators presented are recommendations and can also be used in accordance with the general
validity of the reference process from ISO 18828-2 and relate to the content described in this document.
2 Normative references
There are no normative references in this document.
3 Terms, definitions, symbols and abbreviated terms
3.1 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https: //www .iso .org/obp
— IEC Electropedia: available at http: //www .electropedia .org/
3.1.1
key performance indicator
KPI
quantifiable level of achieving a critical objective
Note 1 to entry: The KPIs are derived directly from, or through an aggregation function of, physical measurements,
data and/or other KPIs.
[SOURCE: ISO 22400-1:2014, 2.1.5]
3.1.2
area type rate
ATR
ratio of a specific area type in relation to total area
Note 1 to entry: Examples of specific area types are storage area and assembly area.
3.1.3
area utilization rate
AUR
ratio of required production area and allocated area
3.1.4
bottleneck information rate
BIR
amount of critical information in relation to all information, which causes delays if it is not available
3.1.5
container
general transport container
EXAMPLE Blister packs; lattice boxes; small parts containers.
3.1.6
container type rate
CTR
ratio of stored containers as a percentage of all containers used within the scope of the defined
observation period
3.1.7
information type rate
ITR
ratio of a specific information type in relation to all information types taken together
Note 1 to entry: Examples of specific information types are missing information and used information.
3.1.8
information procurement time
t
IPT
time required to procure information while planner actively searches
3.1.9
information fulfilment rate
IFR
ratio of information provided by the actual process over the information required by the target process
3.1.10
information supply rate
ISR
ratio between the amount of existing information and required information for a planning t
...