Key Performance Indicators for Evaluating The Efficiency of Production Processes in Food Industry

this study attempted to evaluate performance using a holistic approach to performance measures and then analyze how KPIs should be implemented and employed according to theory. In the investigated precision component operation context, the number of non-conforming products was presented as a relative percentage for the examined operations (as very thin conductors). It was assessed as an external and internal KPI. Finally, reasons for not reaching the expected KPI values are identified, and suggestions for increasing efficiency and production processes are provided. To achieve the company's primary goal, that is, to increase profit, it is necessary to determine production process quality and efficiency indicators that should be achieved. The number of product defects, production and technological losses, average and maximum capacity, working hours, energy consumption, number of waste, raw material quality, the time needed to change the production program and the purchase cost of the machine, time to start the process, time needed to execute the production order, work distribution their time intervals, unavailability of production facilities, lack of maintenance and capital maintenance, failure or operating in non-optimal modes of operation, are sufficient to determine the quality of the production process. In this research, all indicators which have been determined will define the efficiency of the production process. The final task of this research is to determine the critical quality and efficiency indicators to maximize production performance in the food industry. Choosing indicators that will become the basis for improving the production process and, thus, the entire food industry and business was difficult. They should be numerically defined based on production parameters, business goals, and strategies. That is because they evaluate the production process, increase efficiency, productivity, or understandability, and target defined goals.