What is critical ratio in SAP MFG-CAM - SAP Complex Assembly Manufacturing?

SAP Term: critical ratio

• Component: MFG-CAM

• Component Name: SAP Complex Assembly Manufacturing

• Description: The value of the critical ratio for an order indicates how the order/operation is doing when compared to the schedule. The system compares the time remaining on the operation to the amount of work remaining. A critical ratio of: < 1 means the order/operation is behind schedule the lower the number, the further behind; 1 means the order/operation is on schedule; or > 1 means the order/operation is ahead of schedule the higher the number, the further ahead.

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• Key Concepts: 
  Critical ratio is a term used in MFG-CAM SAP Complex Assembly Manufacturing to measure the efficiency of a production process. It is calculated by dividing the total number of parts produced by the total number of parts that should have been produced. This ratio helps to identify any inefficiencies in the production process and can be used to make improvements.
  
  How to use it: 
  To calculate the critical ratio, first determine the total number of parts that should have been produced. This can be done by looking at the production plan or by calculating the expected output based on the resources available. Then, count the total number of parts that were actually produced. Finally, divide the total number of parts produced by the total number of parts that should have been produced to get the critical ratio.
  
  Tips & Tricks: 
  It is important to ensure that all parts are counted accurately when calculating the critical ratio. If any parts are missed, it could lead to an inaccurate result. Additionally, it is important to take into account any downtime or other factors that could affect production when calculating the expected output.
  
  Related Information: 
  The critical ratio can be used in conjunction with other metrics such as cycle time and throughput time to get a more comprehensive view of production efficiency. Additionally, it can be used to compare different production processes and identify areas for improvement.