Development of a Method to Compute the Overall Key Performance Index for a Spinning Mill to Aid Supply Chain Management

Abstract

This paper aims to provide a convenient measure of evaluating the performance of spinning mills using the overall Key Performance Index. Although many authors have advocated the concept of the key performance index, their studies were confined to departments other than spinning. The methodology followed in this paper is based on providing weightages to machine utilisation, spindle production, end breaks, HOK (number of operative hours required to produce 100 kg of yarn), roving production, yarn realisation, CSP (count strength product), units/kg of Yarn and to compute the overall Key Performance Index in a logical manner. It has come to light that some mills have achieved an overall Key Performance Index (OKPI) of more than 100 and less than 100 in certain other mills. Also the important factors which are significant for supply chain management have been highlighted. A very useful source of information and advice for various spinning mills to develop their own supply chain strategies is provided. Especially with the introduction of technical textiles, supply chain management has become a critical area.