ISO 18828-4:2018

INTERNATIONAL ISO
STANDARD 18828-4
First edition
2018-06
Industrial automation systems
and integration — Standardized
procedures for production systems
engineering —
Part 4:
Key performance indicators (KPIs) in
production planning processes
Systèmes d'automatisation industrielle et intégration — Procédures
normalisées pour l'ingénierie des systèmes de production —
Partie 4: Indicateurs de performance clé dans les processus de
planification de la production
Reference number
©
ISO 2018
© ISO 2018
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Published in Switzerland
ii © ISO 2018 – All rights reserved

Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms, definitions, symbols and abbreviated terms . 1
3.1 Terms and definitions . 1
3.2 Symbols and abbreviated terms. 4
4 Key performance indicators in production planning processes . 6
4.1 Production planning KPI system . 6
4.2 Formal definition of key performance indicators . 7
5 Descriptions of key performance indicators . 8
5.1 General . 8
5.2 Process-oriented key indicators .10
5.2.1 Time indicators .10
5.2.2 Process indicators .15
5.2.3 Information indicators . .21
5.3 Result-oriented key indicators .26
5.3.1 Manufacturing .26
5.3.2 Assembly .28
5.3.3 Layout .30
5.3.4 Logistics .32
Annex A (informative) KPI overview .34
Bibliography .38
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
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electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
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URL: www .iso .org/iso/foreword .html.
This document was prepared by Technical Committee ISO/TC 184, Automation systems and
integration, Subcommittee SC 4, Industrial data.
A list of all parts in the ISO 18828 series can be found on the ISO website.
iv © ISO 2018 – All rights reserved

Introduction
Ever-growing demands, such as increasing product and process complexity (recognizable by the high
number of versions, short product lifecycles and greater time and cost pressures), define the key
challenges faced by modern manufacturers. As a result, companies resort to ever-more sophisticated
tools for managing complexity and improving transparency. Performance management systems provide
aggregated quantitative depictions of the current situation via key performance indicators (KPIs),
thereby creating the basis for improvement and decision-making processes. Consequently, the aim of
using KPIs is to consistently analyse current production processes in order to control and manage them
after start of production (SOP). In this way, KPIs provide a base of information for understanding and
improving manufacturing performance.
NOTE 1 See for example ISO 22400.
Beyond the uniform set of core key indicators, many companies already successfully utilize performance
management based on a self-defined, comprehensive range of measurable values. In this process, a
target-oriented, company-specific interpretation of key indicators is often performed.
Considering the product development process in greater detail and taking into account the planning
tasks before SOP, it is recognizable that the definition and establishment of standardized key indicators
focuses on the phase after SOP. Figure 1 details the key tasks in this area based on the product lifecycle.
Figure 1 — Quantitative depiction of use of key performance indicators in product lifecycle
The range of process management indicators available in the production planning phase is quite small,
as indirect planning tasks have rarely been recorded or managed up to this point. Consequently, there
is no standardized set of basic key planning indicators before SOP.
The lack of adequate control parameters necessitates the development of a framework to monitor
and improve production planning processes. Key indicators described in this document concern
performance tracking of planning processes for engineering production systems.
NOTE 2 This is based on the planning disciplines and stage of development of the planning process in
accordance with ISO 18828-2.
The KPIs for production planning generally help to advance the process of standardizing the quality
of production process monitoring. The key indicators are abstracted in such a way that they can be
consistently applied, according to their definition, in the various planning areas and, if properly
adapted, in other areas as well. The key indicators by themselves cannot be used to measure process
performance. They can only be set in relation to, and used for, the purposes of continuous comparison
with process improvement if thresholds are defined and applied. Definition of the relevant thresholds
therefore depends on the particular company. Regarding the production planning processes, it is
necessary to pay more attention to the system boundaries of the analysis in order to ensure proper
performance management. Key indicators often have a general trend, in terms of optimization taking
place in general, or even a theoretical optimum existing. However, they require in particular an
examination in relation to the company specifically and an application-based interpretation carried out
previous to their utilization.
vi © ISO 2018 – All rights reserved

INTERNATIONAL STANDARD ISO 18828-4:2018(E)
Industrial automation systems and integration —
Standardized procedures for production systems
engineering —
Part 4:
Key performance indicators (KPIs) in production planning
processes
1 Scope
This document specifies a set of key performance indicators in production planning, which allow
comparison and monitoring of the production planning process in a standardized framework.
As a first step, the utilization of the KPIs is elaborated in order to organize the indicators in a multi-level
system taking different ranges of the planning process into account. This development of a multi-level
system represents the core of this document. The scope of the planning processes discussed in this
document is limited to production planning for products in series production. Only tasks carried out
within the production planning process are considered in this approach.
All key indicators presented are recommendations and can also be used in accordance with the general
validity of the reference process from ISO 18828-2 and relate to the content described in this document.
2 Normative references
There are no normative references in this document.
3 Terms, definitions, symbols and abbreviated terms
3.1 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https: //www .iso .org/obp
— IEC Electropedia: available at http: //www .electropedia .org/
3.1.1
key performance indicator
KPI
quantifiable level of achieving a critical objective
Note 1 to entry: The KPIs are derived directly from, or through an aggregation function of, physical measurements,
data and/or other KPIs.
[SOURCE: ISO 22400-1:2014, 2.1.5]
3.1.2
area type rate
ATR
ratio of a specific area type in relation to total area
Note 1 to entry: Examples of specific area types are storage area and assembly area.
3.1.3
area utilization rate
AUR
ratio of required production area and allocated area
3.1.4
bottleneck information rate
BIR
amount of critical information in relation to all information, which causes delays if it is not available
3.1.5
container
general transport container
EXAMPLE Blister packs; lattice boxes; small parts containers.
3.1.6
container type rate
CTR
ratio of stored containers as a percentage of all containers used within the scope of the defined
observation period
3.1.7
information type rate
ITR
ratio of a specific information type in relation to all information types taken together
Note 1 to entry: Examples of specific information types are missing information and used information.
3.1.8
information procurement time
t
IPT
time required to procure information while planner actively searches
3.1.9
information fulfilment rate
IFR
ratio of information provided by the actual process over the information required by the target process
3.1.10
information supply rate
ISR
ratio between the amount of existing information and required information for a planning task
3.1.11
information utilization rate
IUR
ratio of information used in relation to the appropriate amount of information available
Note 1 to entry: It is a measured value that describes the amount of available information used for the planning
process.
2 © ISO 2018 – All rights reserved

3.1.12
information waiting time
t
wait
time spent waiting for information that is required for the planning process to continue
3.1.13
storage container rate
SCR
ratio of stored containers as a percentage of all containers used within the scope of the defined
observation period
3.1.14
planning procedure alternatives
PPA
ratio of planning tasks that can be handled at the same time in relation to all tasks required
3.1.15
planning type rate
PTR
ratio of specific planning types to all planning types
Note 1 to entry: Examples of specific planning types are digital planning and workshop.
3.1.16
planning iteration number
PIN
number of iterations of a specific planning task
EXAMPLE Revision after a first successful performed planning task.
3.1.17
planning iteration rate
PIR
ratio of repeated planning tasks
EXAMPLE All tasks performed twice.
3.1.18
planning cycle time
t
CT
cycle time required for processing a particular planning task
3.1.19
planning work in progress
PWP
aggregated number of pending work tasks in the process scope
3.1.20
process detail level
PDL
number of sub-process steps planned for a process
EXAMPLE Specifying the description of an assembly process.
3.1.21
response time
t
RT
time between receipt of a planning request and start of planning operation
3.1.22
sub-process
process step that is part of a higher-level process
EXAMPLE Assembly and pre-/final assembly.
3.1.23
transport plan rate
TPR
ratio of the number of planned transportation plans to the number of all theoretically
3.1.24
time type rate
TTR
ratio of time types in relation to total working time
Note 1 to entry: Examples of time types are waiting and searching.
3.1.25
work plan rate
WPR
ratio of scheduled work plans to the work plans used in manufacturing operations
Note 1 to entry: An example of a scheduled work plan is for representative product variants.
3.1.26
work plan homogeneity level
WHL
measure for homogeneity or equal distribution in terms of duration of sub-process steps in relation to
one another
3.2 Symbols and abbreviated terms
A total area
all
A allocated area
alloc
A assembly area
ass
A required area
req
A sanitary area
san
A storage area
sto
A set area
x
C total number of containers
all
C number of containers; size: S/M/L
dim
C number of supplier containers
ext
C number of internal containers
int
C number of special containers
spec
C number of standard containers
stand
C number of containers stored
sto
4 © ISO 2018 – All rights reserved

C specific container type
x
D all planning tasks required
all
D planning tasks performed in team/workshop etc
coop
D planning tasks performed with digital planning support
dig
D number of pending planning tasks
i
D planning tasks performed by the planner (team, department, etc.)
local
D planning tasks actually implemented at the same time
real
D planning tasks that can be handled at the same time
same
D planning tasks performed in line with standard workflow
stand
D planning tasks performed with specific planning type
x
I accepted information
acc
I information supplied from actual process
act
I total of all information
all
I available information
avail
I critical information
crit
I digital information
dig
I primary information
pri
I information required
req
I secondary information
sec
I required information from target process
targ
I information used
used
I specific information type
x
L level of detail of transport plan
TP
L level of detail of work plan
WP
M number of planning cycles due to errors
Ei
M number of planning cycles
i
M number of planning cycles after release of planning result
Ri
N number of sub-processes
sp
P total number of all process elements
all
P number of iterated process elements due to errors
Ei
P number of iterated process elements
i
t end time of planning process (planning task completed)
end
t expected time for pending planning tasks
i
t time representing receipt of the planning request
ini
T number of scheduled transport plans
plan
t search time
search
t duration of a sub-process
sp
t total duration of process
sp,all
mean duration of sub-processes
t
sp
t start time of planning process
start
T number of transport plans used in manufacturing operations
used
t value-added time
value
t work time (not including contingency allowances, contingencies, etc.)
work
t specific time type
x
W number of work plans created
plan
W number of work plans used in manufacturing operations
used
SOP start of production
4 Key performance indicators in production planning processes
4.1 Production planning KPI system
The production planning KPIs have been organized in a multi-level KPI system which provides different
key indicator levels for processes. Those levels range from evaluation of the planning processes in
process-oriented key indicators, e.g. through the analysis of time data, process types, and information
requirements, to evaluation of the specific planning task results. In this organizational structure,
the more process-oriented key indicators on the one hand are valid across different disciplines. On
the other hand the result-oriented key indicators tend to relate strongly to the predefined planning
disciplines of the production planning processes. In this way, for example, key indicators such as floor
space utilization or ratio of container types are used to evaluate the planning results of the planning
disciplines of layout and logistics planning based on the application of the concepts developed in the
planning process. Figure 2 provides an overview of the structure of the KPIs in production planning.
6 © ISO 2018 – All rights reserved

Figure 2 — Structure of the KPIs
The defined structure will be filled with sample key indicators on all levels. A consistent documentation
of these indicators is ensured by use of a standardized key indicator template (see 4.2). Process-
oriented key indicators can be identified by their broad scope of use, as they are neither discipline-
specific nor specific to the individual stage of development. They are assigned to a specific context
when adjusted to the user’s planning processes requiring evaluation. Process-oriented key indicators
such as these may represent for instance the iteration rate of a particular process. Another example
for process-oriented key indicators might be ratios adjusted to a specific use case. In one scenario the
information type rate mirrors the rate of digital information compared to a total amount. In another
scenario the KPI compasses missing information instead. However, iterations taking place as part of
the planning (e.g. revision work in production) a positive or negative trend cannot be assigned directly
because, the reasons for a planning iteration (e.g. updated or new planning information, external or
internal requirements) may vary in practice. Interpretation of the planning iteration depends on the
context, such as observed planning phase and planning scope, and requires a thorough check. As the
definition already resolves, key indicators based on concrete planning results are far more dependent
upon the context and have a narrow, predefined scope of validity. Based on the core planning disciplines
identified in the reference planning process, sample result KPIs can be derived for use in these domains.
NOTE Based on the planning disciplines and stage of development of the planning process in accordance
with ISO 18828-2.
4.2 Formal definition of key performance indicators
The planning disciplines within this reference process are manufacturing, assembly, logistics
and layout planning. These disciplines act, in this respect, as a base for the comparison of various
production planning processes and a cross-discipline comparison. This document enhances options
for performance management within a company and, if required, across multiple companies.
Simultaneously, a distinction between key indicators in relation to the reference object needs to be
drawn. In the first place, key process indicators are described presenting the planning processes that
are clearly present and reveal possible ways to analyse the efficiency of the processes. Secondly, the
planning quality, e.g. process output quality, is assessed using different key indicators in certain cases.
The basic structure used to define key indicators is divided into three different parts. Table 1 presents
an abridged version.
NOTE This is based on the structure of key indicators from ISO 22400-2.
Table 1 — Structure of KPI description
Description
Name
Planning discipline/process step
Use case/application context
Definition
Formula
Unit/dimension
Range
Variation
Input parameters/variables
Parameter 1
Parameter 2
…
Parameter n
Comments
Result/interpretation/specification
Point of Contact
The first part describes the respective key indicator containing its name, planning discipline/process
step and use case/application context, the latter of which defines, for example, the standard disciplines
of manufacturing planning, assembly planning, logistics planning and layout planning, or process steps
the key indicator is used in.
The details of the key indicator are defined in the second part. This includes the explicit formula and
corresponding unit/dimension as well as the range. Respective, generally valid input parameters and
variables form the next part of the table. If necessary, a description of possible variations of the key
indicator that can also be used, and that expand on the range of key indicators, is also provided.
EXAMPLE The KPI “planning iteration number”, whose variations can occur in different phases of process
planning, provides an example of a key indicator variation. Variations provide a possibility for companies to
specify a KPI in accordance with their environment. Companies are advised to maintain the variations used
for a KPI in order to keep consistent results, e.g. for benchmarks or comparative methods. The KPI itself is, for
example, useful in the phase of developing a concept to specify the number of revisions needed after a successful
performed task simulation. However, in the phases of rough and detailed planning, variations of the KPI (planning
iteration error number or planning iteration revision) can prove more beneficial in handling process errors or
adjustments. In addition, there are two different types of variations influencing the structure of the tables. If
the variation affects the formula as a whole, it is categorized in the second part of the table “Definition”. If the
variation affects only a parameter of the formula, the variation is listed in the third part “Input parameters/
variables”.
The last part of the key indicator description provides notes on the key indicator, which shall be
considered in relation to the result, interpretation or specification in order to ensure use as intended.
The process manager, who has direct influence over the key indicator and who should be the main point
of contact with regard to collection or optimization, is also named.
Annex A provides an overview of the described KPIs.
5 Descriptions of key performance indicators
5.1 General
The production planning KPIs are organized in a multi-level KPI system providing different key indicator
levels for processes. Definitions and details of the individual KPIs are provided in Tables 2 to 24.
8 © ISO 2018 – All rights reserved

As illustrated in Figure 3, in order to provide a systematic classification for the KPIs, a distinction
is drawn between process-oriented, aggregated and concrete indicators. Within process oriented
indicators, the three factors of time, sequence and information are distinguished. Users choose a KPI
which best suits their point of interest. KPIs represent a generic option to measure quality, time or cost.
Figure 3 — Key performance indicators for production planning
5.2 Process-oriented key indicators
5.2.1 Time indicators
Table 2 — Description of planning cycle time (t )
CT
Description
Name Planning cycle time
Planning discipline/process step All
Cycle time required for processing a particular plan-
Use case/application context
ning task.
Definition
Formula t = t − t
CT end start
Unit/dimension [h]/hours
—  Min: 0 [h]
Range
—  Max: infinite
Input parameters/variables
—  t : Time representing start of planning process in
start
Parameter 1
[h]/hours
—  t : Time representing end of planning process
end
Parameter 2
(planning task completed) in [h]/hours
—  t : Time representing identification of requirement
start
Variation
at start of a planning task in [h]/hours
Comments
Trend: The shorter the better;
Periods of absence, vacations, etc. shall be taken into
account;
Can be applied in re-planning and change planning;
Result/interpretation/specification
Iteration of change planning could be triggered via updat-
ed information;
Use of standardized time scale to consider national dif-
ferences.
Point of Contact Planner
10 © ISO 2018 – All rights reserved

Table 3 — Description of information procurement time (t )
IPT
Description
Name Information procurement time
Planning discipline/process step All
Time required to procure information (while planner
Use case/application context
actively searches).
Definition
Formula t = t − t
IPT end start
Unit/dimension [h]/hours
—  Min: 0 [h]
Range
—  Max: infinite
Average information procurement time t
()IPT
m
tt−
()
∑
end,jjstart,
j=1
t =
IPT
m
The defined process scope can contain individual process
Variation
elements as well as process chains;
Average values should not be compared with different
statistical degrees of precision;
Quantification of information in the defined scope is
necessary.
Input parameters/variables
—  t : Time representing start of information pro-
start
Parameter 1
curement in [h]/hours
—  t : Time representing end of information procure-
end
Parameter 2
ment (planning task completed) in [h]/hours
Parameter 3 —  m: Number of time measurements
Parameter 4 —  j: Indexed variable for a specified time measurement
Comments
Trend: The shorter the better;
Periods of absence, vacations, etc. shall be taken into
account;
Use of standardized time scale to consider national dif-
Result/interpretation/specification ferences;
Information type and process complexity shall be taken
into account;
Key indicators can be influenced by other activities (pri-
ority shall be considered).
Point of Contact Planner
Table 4 — Description of information waiting time (t )
wait
Description
Name Waiting time for information
Planning discipline/process step All
Time spent waiting for information which is required for
Use case/application context
the planning process to continue.
Definition
Formula t = t − t
wait end
...