Every day, plant managers and executives are constantly receiving tons of information about the production of their factories, making it difficult to analyze everything and decide which metrics are the ones that make more sense to be used in their business.
Manufacturing metrics and KPIs help you, monitor, analyze, and consequently, optimize your production processes, contributing to an improvement of the quality and quantity of the produced goods. They provide valuable insights that will help you meet your goals.
To know which ones are the most useful for your enterprise, take a look at the fifteen metrics we selected.
This metric is the rate of how many units are produced on average, by a machine, cell or line over a certain period.
02. Manufacturing Cycle Time
Also known as throughput time, this metric consists of the length of time from the start of the production to the delivery of the final product.
03. Machine Setup Time (Changeover)
Time spent on setting up a machine or a production line, with the specifications of the new product that will start being produced, when this one is distinct.
04. Capacity Utilization
KPI which indicates the amount of available capacity that is being used to supply current demand.
We can consider this metric as the rate of how many units on average a machine, cell or line is producing over a certain period of time.
06. Total Manufacturing Cost Per Unit Excluding Materials
A measure of all potentially controllable manufacturing costs that go into the production of a given manufactured unit, item or volume.
07. Downtime vs. Operating Time
Downtime corresponds to the period of time when no value is being created, whereas operating time is the period of time where the machines are running.
Unplanned machine stops while a production order is running.
09. Inventory Turnover
The calculation of the number of times a company sells its goods.
10. Scrap Rate
The percentage of components made with deformities which cannot be used and are thrown away.
11. On-time Delivery
It is a metric used to inform if your products are being handed over to the client on time.
12. Planned and Unplanned Maintenance Time
Predicted and unpredicted times a machine stops.
13. First Pass Yield
Measures quality and production performance.
14. Failed Audits
Evaluates if the final product is ready or not to be delivered to the customers.
15. Employee Turnover
Measures the number of employees that leave an organization.
Even though not all the metrics stated above might make sense to implement in your factory, you should decide what you want to trigger and analyze to boost your efficiency and productivity.