Want to improve your manufacturing operations and stay ahead of the competition?
Here are the top 10 manufacturing KPIs you should be tracking!
Here are the top 10 manufacturing KPIs you should be tracking!
1/10
Production activity (or volume)
Description: Calculates the value of the production output in monetary value
Formula: Sum of the monetary value of all finished goods produced within a defined period
Production activity (or volume)
Description: Calculates the value of the production output in monetary value
Formula: Sum of the monetary value of all finished goods produced within a defined period
2/10
Cycle Time
Description: Average amount of time to make one product, including process, inspection, move, and queue time
Formula: Process time + Inspection time + Move time + Queue time
Cycle Time
Description: Average amount of time to make one product, including process, inspection, move, and queue time
Formula: Process time + Inspection time + Move time + Queue time
3/10
Takt time
Description: Rate at which you need to complete a product to meet customer demand
Formula: Production available time / Customer demand
Takt time
Description: Rate at which you need to complete a product to meet customer demand
Formula: Production available time / Customer demand
4/10
Inventory Turnover
Description: Amount of time that passes from the day an item is purchased by a company until it is sold
Formula: Cost of Goods Sold / Average Inventory (over a period of time)
Inventory Turnover
Description: Amount of time that passes from the day an item is purchased by a company until it is sold
Formula: Cost of Goods Sold / Average Inventory (over a period of time)
5/10
Return on Assets (ROA)
Description: Measures how effectively a company is using its resources (machine and inventory) to make a profit
Formula: Net Income / Average Total Assets
Return on Assets (ROA)
Description: Measures how effectively a company is using its resources (machine and inventory) to make a profit
Formula: Net Income / Average Total Assets
6/10
First Pass Yield
Description: Measure of quality and performance and is at the heart of production efficiency and profitability
Formula: Number of good products finished / Number of production orders started
First Pass Yield
Description: Measure of quality and performance and is at the heart of production efficiency and profitability
Formula: Number of good products finished / Number of production orders started
7/10
Yield Factor
Description: Calculates the number of items to start to have a good finished product
Formula: Number of production orders started / Number of good products finished
Yield Factor
Description: Calculates the number of items to start to have a good finished product
Formula: Number of production orders started / Number of good products finished
8/10
Overall Equipment Effectiveness (OEE)
Description: Compares the performance of a machine to its relative capacity
Formula: Good Count × Ideal Cycle Time / Planned Production Time
Overall Equipment Effectiveness (OEE)
Description: Compares the performance of a machine to its relative capacity
Formula: Good Count × Ideal Cycle Time / Planned Production Time
9/10
On-time delivery
Description: Measures if an organization is meeting its goals in regard to promised delivery times
Formula: On-time units / Total units
On-time delivery
Description: Measures if an organization is meeting its goals in regard to promised delivery times
Formula: On-time units / Total units
10/10
Avoided costs
Description: How much money have you saved by using preventive maintenance
Formula: Assumed Repair Cost + Production Losses – Preventative Maintenance Cost
Avoided costs
Description: How much money have you saved by using preventive maintenance
Formula: Assumed Repair Cost + Production Losses – Preventative Maintenance Cost
Which other KPIs should be considered?
Please share your thoughts!
Follow and RT if you think these KPIs are helpful!
Please share your thoughts!
Follow and RT if you think these KPIs are helpful!
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