Compendium of 44 Most Useful KPIs for the Manufacturing Sector
These KPIs provide insights into the efficiency, quality, and overall performance of manufacturing processes.
1. Aging Work in Progress (WIP): The average age of work in progress items, indicating how long they have been in the production process.
2. Backorder Rate: The percentage of customer orders that cannot be fulfilled immediately and are placed on backorder.
3. Capacity Utilization Rate (CUR): The ratio of actual production output to the maximum possible output, measuring how efficiently resources are utilized.
4. Cash-to-Cash Cycle Time: The time it takes for a company to convert its investments in raw materials into cash through sales.
5. Changeover Time: The time required to switch production from one product to another.
6. Cycle Time Ratio: The ratio of actual production cycle time to the target cycle time.
7. Days Sales of Inventory (DSI): The number of days it takes for a company to sell its entire inventory.
8. Demand Forecasting Accuracy: The accuracy of a company's predictions for future demand compared to actual demand.
9. Direct Labor Efficiency Variance: The variance between the actual and standard labor hours required to produce a given quantity of goods.
10. Fill Rate: The percentage of customer demand that is met from stock without backorders.
11. First Pass Yield (FPY): The percentage of units produced correctly without the need for rework or correction.
12. First Time Through (FTT): The percentage of products that pass through the entire production process without defects or rework.
13. Machine Breakdown Frequency: The frequency at which machines experience breakdowns or failures.
14. Machine Downtime Rate: The percentage of time that manufacturing machines are not in operation due to breakdowns or maintenance.
15. Maintenance Costs as a Percentage of Replacement Asset Value (RAV): The proportion of maintenance costs relative to the total value of the manufacturing assets.
16. Manpower Efficiency: The efficiency of the workforce in converting inputs into outputs.
17. Manufacturing Lead Time: The time it takes for a product to move through the entire manufacturing process, from order placement to delivery.
18. Manufacturing Velocity: The speed at which products move through the manufacturing process.
19. Material Availability: The availability of required materials for the production process.
20. Materials Usage Variance: The difference between actual and expected material usage, expressed as a variance.
21. Materials Yield Variance: The variance between actual and expected material yields in the production process.
22. Order Fulfillment Cycle Time: The time it takes to fulfill a customer order, from order placement to delivery.
23. Order Picking Accuracy Rate: The accuracy rate of picking the correct items from inventory for customer orders.
24. Overall Equipment Effectiveness (OEE): A measure of how well manufacturing equipment is utilized to produce quality products efficiently.
25. Percentage of Non-Standard Orders: The percentage of customer orders that deviate from standard products or processes.
26. Percentage of On-Time Supplier Deliveries: The percentage of deliveries from suppliers that arrive on time.
27. Percentage of Premium Freight Charges: The percentage of shipments incurring additional premium freight charges.
28. Percentage of Products Meeting Regulatory Standards: The percentage of manufactured products that meet regulatory standards and compliance.
29. Percentage of Recalled Products: The percentage of products subject to recalls out of the total production.
30. Percentage of Sustainable Materials Used: The proportion of environmentally friendly or sustainable materials used in production.
31. Process Yield Rate: The percentage of products that meet quality standards in the manufacturing process.
32. Production Attainment: The extent to which actual production meets planned production targets.
33. Production Cost Variance: The variance between actual production costs and standard production costs.
34. Production Flexibility: The ability of a manufacturing process to adapt to changes in production requirements.
35. Rate of Product Obsolescence: The speed at which products become obsolete and are no longer in demand.
36. Rate of Return: The percentage of products returned by customers.
37. Rework Rate: The percentage of products requiring rework or correction in the production process.
38. Schedule or Production Adherence: The extent to which production schedules are adhered to.
39. Scrap Rate: The percentage of products that are rejected or discarded during the manufacturing process.
40. Supplier Defect Rate: The percentage of defective products received from suppliers.
41. Supplier Lead Time: The time it takes for suppliers to fulfill orders and deliver materials.
42. Supplier On-Time Delivery Rate: The percentage of deliveries from suppliers that arrive on time.
43. Throughput: The rate at which a manufacturing process produces units.
44. Waste Percentage: The percentage of waste generated in the production process.
