The 4 Bakery KPIs That Let You Have Your Cake & Eat it
Posted on 4th May 2017 in KPIs
Written by Freya Hughes
Here in the UK there’s not much on TV that attracts the attention of the masses quite like The Great British Bake Off. Anyone who follows the news here will know that there’s been some controversy surrounding the show’s move to a different channel and the replacement of some beloved presenters. As we gear ourselves up to see how Sandi Toksvig, Noel Fielding and co hold up against the old crew, we thought we’d share with you our top four KPIs to help you run your bakery.
I’ve said it before and I’ll say it again: here at FUTRLI we love metrics. Having a look through our KPI Library will give you a good amount of inspiration for what you should be measuring. But for right now, dust off those floury hands, put down the pastry cutter and stop the blind bake – here are the KPIs for your bakery to rise up past competitors. You’ll be the best thing since sliced bread.
1. Takt time
Takt time is the amount of time (also known as cycle time) it takes for you to complete a given task. Be it product production or serving a customer, you’ll be able to quickly see if your processes can be streamlined. As so many products are made in batches, it’s a great way to spot any bottlenecks that are slowing you and your business down. Available work time is the amount of time (in minutes or seconds) that you have available to work on manufacturing your products. This is invaluable if you’ve received a large order and need to sort out your working rotas and order more ingredients. Find out more about Takt time and how to calculate it here.
2. Count – good and bad
As the name suggests, this KPI measures the amount of product that’s produced in a given period. Be it positive or negative, this is usually measured since the start of a week, day, shift or even machine changeover. Of course, checking the progress of this metric is going to be most effective by doing so frequently. Many employers use the count to invoke a degree of competitive spirit between employees and improve their efficiency in the workplace. It gives a clear indication of your performance line, and the amount of quality products being produced. If a count is higher or lower than expected it’ll impact your orders so is of the utmost importance to measure. Of course this KPI is subject to many errors. Looking at scenario planning, to give yourself confidence with how to cope if you’re way under, is a great way to open your mind as to what might come next.
3. Reject ratio
Monitoring the quantity of your products that don’t make it to the shelf will help you meet your profitability goals. It’s important as it’ll make over (or under) ordering apparent, and signify where you might be wasting cash. If your products do find themselves going straight into the reject pile, it may raise a red flag about your staff or machinery. Perhaps your ovens are past it and not hitting ideal temperatures fast enough, or perhaps staff are undertrained or complacent. Whatever the reason, conducting this measurement will give you a great insight into the workings of your business.
Quite literally the time that you and your staff are not able to work. This could be because of a breakdown or changeover of a machine so is handy to measure as it feeds in with the above KPIs. If you’re not working, you’re not making money. Can you speed up changeovers and fixes? To stay in the know about downtime, many businesses require staff to give reasons for downtime. This could be via a keypad, barcode scanner, or even written manually. If you do measure this electronically, feed this non-financial data into FUTRLI for an accurate forecast.