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|Title: ||Performance measurement and KPIs for remanufacturing|
|Authors: ||Graham, Ian J.|
Goodall, Paul A.
West, Andrew A.
Conway, Paul P.
Mascolo, Juliene E.
Dettmer, Fritz U.
Key performance indicator
|Issue Date: ||2015|
|Publisher: ||Springer International Publishing Ltd © the authors|
|Citation: ||GRAHAM, I. ... et al., 2015. Performance measurement and KPIs for remanufacturing. Journal of Remanufacturing, 5:10.|
|Abstract: ||The paper provides a brief background to remanufacturing and the general use of
Performance Measurement and Key Performance Indicators (KPIs) before introducing
selected and newly formulated KPIs designed specifically for remanufacturing. Their
relationships with the remanufacturing challenges faced by two contrasting
remanufacturing businesses and the wider reman industry are described in detail.
Subsets of KPIs forming a ‘Balanced Scorecard’ for each of the two remanufacturing
cases conclude the paper. They arise through close working with Centro Ricerche FIAT
(CRF) and SKF, and are triangulated by literature review and wider expert interviews.
The two businesses represent contrasting remanufacturing scenarios: well-established
high-volume low-margin automotive engine remanufacturing by the OEM ( >1000
units per year, < €10 k per unit) verses low-volume high-value wind turbine gearbox
reman by an independent start-up ( < 100 units per year, > €100 k per unit).
The 10 general production engineering KPIs selected for the reman KPI toolbox are as
follows: Work In Progress (WIP), Overall Equipment Effectiveness (OEE), Lead Time (LT),
Cycle Time (CT), Hours Per Unit (HPU), Product Margin (PM), Quotation Accuracy (QA),
Number of Concessions (NC), Number of managed mBOMs (BOM), and Personnel
The Eco KPIs selected are: Material Used (MU), Recycled Material Used (RMU), Direct
Energy Consumption (ECD), Indirect Energy Consumption (ECI), Water Withdrawal
(WW), Green House Gas emissions (GHG), Total Waste (TW) by weight.
The 8 Remanufacturing KPIs compiled and formulated as part of this research are:
Core / Product Ratio (CPR), Core / Product Value Ratio (CPV), New Component
Costs (NCC), Component Salvage Rate (SRC), Product Salvage Rate (SRP), Core
Disposal Rate (CDR), Core Class Accuracy (CCA), and Core Class Distribution (CCD).|
|Description: ||© 2015 Graham et al. Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International
License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium,
provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and
indicate if changes were made.|
|Sponsor: ||The PREMANUS project (1/9/11 to 30/6/15, grant agreement number 285541) is co-funded by the European Union
under the Information and Communication Technologies (ICT) theme of the Seventh Framework Programme (FP7) for
research, technological development and demonstration.|
|Publisher Link: ||http://dx.doi.org/10.1186/s13243-015-0019-2|
|Appears in Collections:||Published Articles (Mechanical, Electrical and Manufacturing Engineering)|
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