Production KPIs

• Overall Equipment Effectiveness (OEE): A comprehensive metric combining equipment availability, performance, and quality. Higher OEE indicates greater manufacturing efficiency.
• Production Output: Total quantity of goods produced in a given period. Primary measure of production volume.
• Throughput Time: The time it takes for raw materials to move through the production process and become finished goods. Shorter times equal faster output.
• Capacity Utilization: Percentage of your manufacturing capacity that is actually being used. Helps identify opportunities and bottlenecks.
• Yield Rate: Percentage of manufactured units that meet quality standards and are sellable. High yield reduces waste and increases profits.

Quality KPIs

• Defect Rate: Percentage of manufactured units with defects or quality issues. Lower is better to minimize waste and rework.
• Customer Returns: Track the number or percentage of products returned by customers due to defects or quality problems.
• Scrap Rate: Percentage of materials or products wasted during the manufacturing process due to defects or errors.
• Rework Rate: Percentage of products requiring additional work to correct issues found during quality control.
• First Pass Yield: Percentage of products that pass quality control without needing rework. Higher is better for efficiency.

Financial KPIs

• Cost of Goods Manufactured (COGM): Total costs involved in producing finished goods, including materials, labor, and manufacturing overhead.
• Gross Profit Margin: Percentage of revenue remaining after the COGM is accounted for.
• Net Profit Margin: Percentage of revenue remaining after all expenses are accounted for. Measures overall profitability.
• Inventory Turnover: How frequently inventory is sold and replenished over a period. High turnover often indicates healthy demand and efficient management.
• Return on Assets (ROA): Net income divided by total assets. Measures how effectively a company uses its assets to generate profit.

Safety & Maintenance KPIs

• Safety Incident Rate: Number of workplace injuries or accidents per 200,000 hours worked (industry standard calculation). Safety is always a top priority.
• OSHA Recordable Incident Rate: Number of OSHA-recordable injuries or illnesses per 200,000 hours. Tracks serious incidents.
• Downtime: Total time production equipment is out of service due to breakdowns or planned maintenance. Minimize downtime to maintain output.
• Mean Time to Repair (MTTR): Average time it takes to fix equipment failures and restore them to operation. Shorter MTTR means less downtime.

Supply Chain KPIs

• On-Time Delivery (OTD): Percentage of supplier deliveries arriving on or before the agreed-upon date. Reliability is crucial.
• Supplier Quality: Track defects or quality issues found in incoming materials and components.
• Lead Time: The time it takes from placing an order with a supplier to the time the materials are received.
• Inventory Days on Hand: Average number of days inventory is held before being used in production or sold.