Performance measurement and KPIs for remanufacturing

Paul A. Goodall · Yi Peng · Claire Palmer · Andrew A West · PAUL P. CONWAY · Julien Mascolo +1 more

56 citations0/0 files storedJournal of remanufacturing

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Sustainable Supply Chain Management Management and Optimization Techniques Quality and Supply Management

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 Saturation (PS). 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).

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References

1992The balanced scorecard : measures that drive performance 1997The balanced scorecard: Translating strategy into action 1996Using the balanced scorecard as a strategic management system 1991The machine that changed the world : the story of lean production 1998Putting the Balanced Scorecard to Work 2000Production planning and control for remanufacturing: industry practice and research needs 1991Performance measurement in service businesses 2004Beyond budgeting: how managers can break free from the annual performance trap

Cited by

2017Remanufacturing challenges and possible lean improvements 2021Leveraging big data analytics capabilities in making reverse logistics decisions and improving remanufacturing performance 2021Impact of remanufacturing on the reduction of metal losses through the life cycles of vehicle engines 2017A Bi-Level fuzzy analytical decision support tool for assessing product remanufacturability 2023Industry 4.0 deployment for circular economy performance—Understanding the role of green procurement and remanufacturing activities

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