The 25 best examples of industrial manufacturing KPIs for production reports

In any manufacturing process, efficiency is the key to success and spans from the production line to the manufacturing process. Industrial manufacturing KPIs performance data can provide valuable information that helps not only to run better but also to maintain production quality.

The best way to collect this data is through KPIs that help measure different aspects of the business, enabling data reporting and knowledge-based improvements.

What does KPI mean in manufacturing?

The term KPI (Key Performance Indicators) stands for key performance indicator or performance measure and is a type of quantifiable measure that provides information on performance. KPIs are used by manufacturing companies to monitor and evaluate their performance, using this information to improve processes and increase operational efficiency.

Manufacturing KPIs can be used to monitor different aspects of manufacturing processes, ensuring the efficiency of the manufacturing cycle and manufacturing costs. They also provide valuable information for marketing and human resources departments.

Here is a look at examples of industrial manufacturing KPIs that are useful for a good data management strategy.

Manufacturing KPIs to improve the production process

• Overall Equipment Effectiveness (OEE)Overall equipment effectiveness is a key metric for measuring production efficiency as it compares uptime data to scheduled production time. Using OEE can highlight anomalies in the data that may indicate a problem. Quick identification allows solutions to be found and maintenance can be carried out quickly to limit disruption to production. OEE is calculated by measuring availability, quality and throughput. A practical example of how to calculate OEE can be found here.
• Machine downtimeMachine downtime is part of the OEE measurement and provides an overview of the performance of operations. It considers unscheduled downtime and scheduled downtime, which includes maintenance tasks, machine changeover time and setup time.
• Unscheduled downtimeUnscheduled downtime can have a significant impact on production schedules. With preventive and scheduled maintenance, unscheduled downtime can be minimised by maintaining throughput at a higher volume to ensure normal system operation.
• Cycle timeCycle time: Cycle time can be a very useful metric for improving production as it measures the total time it takes from the start of the manufacturing process to the delivery of the product to the final customer.
• Machine set-up timeMachine set-up time influences production and knowing how long this process takes helps to implement processes that reduce lost production time. Knowing machine set-up time can also help identify periods when set-up can take place without causing disruption to overall production.
• Production volumeProduction volume provides a measure of how much you can produce during a defined period. It helps to identify the best performing machines and production lines, allowing contingency measures to be taken in the event of breakdowns or high periods of absence.
• Overall Operational Effectiveness (OOE): The overall efficiency of operations is a useful manufacturing KPI to determine the efficiency of the production process and how it improves over time. It is calculated by measuring throughput, quality and availability (Operating Time or Actual Production).
• Percentage of planned maintenancePlanned maintenance percentage is useful to measure the rate of scheduled maintenance versus unscheduled maintenance. It provides information on where preventive maintenance can help avoid unscheduled downtime. The percentage of planned maintenance can be used in conjunction with the total maintenance cost of unscheduled downtime, demonstrating the benefits of industrial maintenance planning.
• Customer return rateReturns may indicate quality problems with the products manufactured. If customer returns are high due to defective products, this could indicate problems during the manufacturing or production process. The ultimate goal is to have no returns, which indicates customer satisfaction. A KPI on the rate of customer returns can also benefit marketing and customer service. 

KPIs to improve the manufacturing process

• First pass performanceAnother manufacturing KPI is the first-pass yield or first-pass yield, which determines the number of products that are produced correctly the first time. The higher the number, the better the efficiency of the manufacturing processes. They also demonstrate the ability of your workers to produce quality results on the first manufacturing attempt.
• PerformanceThroughput is a fundamental manufacturing KPI and determines the production capacity of a machine, a production line or the entire operation over a defined period of time. Throughput measures the number of units produced in an hour, a day, a week, etc.
• Review workRework metrics highlight the number of units that need to be reworked due to quality problems. Rework costs a manufacturing plant time and money due to the additional raw materials used. High levels of rework may indicate the need for additional training for the production line.
• Cost per unitManufacturing cost per unit is an essential metric and shows the total cost of manufacturing a product, including production, materials, labour and other costs. It is a key performance indicator that enables product pricing, helping to identify profit margins for each of the products manufactured.
• Ratio of inventory turnover/inventory turnsInventory accuracy is an important element of the manufacturing process, as it ensures that your inventory levels are correct for your needs. Storing high levels of inventory has consequences as it is stock that is taking up essential production space and is not generating profits by remaining on the shop floor. A high inventory turnover ratio can indicate effective supply chain management and helps a company to be more agile in its response to customer demands.
• One-off supplier (OTIF)Supplier timeliness (OTIF) is an optional KPI to measure supplier performance. If there are supplier delays, the production line could be affected. Low OTIF rates may indicate that it is time to change suppliers.

Manufacturing KPIs to boost production line performance

• Capacity utilisationCapacity utilisation: Measures the capacity utilised versus the available capacity of your production line. A higher capacity utilisation rate indicates that materials, equipment and workspaces have a high utilisation rate, providing better value for money. Capacity utilisation also helps to inform the proper allocation of resources.
• On-time deliveryOn-time delivery is a key performance indicator that reflects the number of products delivered on time. This figure should be 100% which demonstrates that products were delivered on time to the customer and in turn motivates the production line. Cases where on-time delivery is less than 100% will highlight the need to improve your production processes.
• Compliance with the production programme: Effective planning is a necessity for manufacturing success, and a KPI for production schedule adherence helps to assess the efficiency of production workers and whether targets are met. It is calculated by measuring the ratio of actual production to planned production and is expressed as a percentage.
• Standard operating efficiencyStandard operating efficiency provides data on the performance of employees compared to defined labour standards. This is useful to identify areas where improvements are needed and to address individual performance. It can also help provide data to assist with incentive management within your company.
• Training hoursWhen combined with other KPIs, training hours can provide useful information on the level of training needed to help drive KPIs such as revenue per employee. Training is an essential part of any business, as it ensures that employees know how to perform their roles correctly, which can help reduce staff turnover and prevent accidents.
• Employee turnoverEmployee turnover is an important metric because it reflects the levels of happiness within an organisation. If turnover is high, it is vital to investigate the reasons. High turnover can also correspond to quality-based manufacturing KPIs. Newer employees may need additional training to reach the levels of units produced by more experienced employees on the manufacturing line.
• Reported health and safety incidentsHealth and safety standards need to be maintained to ensure a safe working environment. A zero rate of reported health and safety incidents should be achievable. Accidents can affect a company's finances, morale and the personal lives of its employees. If there is a high rate of reported health and safety incidents, additional training and improved safety measures may be necessary.
• Revenue per employeeRevenue per employee metric: The revenue per employee metric provides a basic key performance indicator that measures the effectiveness of operations. It serves to analyse whether things are improving, declining or maintaining a stable level. Revenue per employee also provides useful information when looking at growth or expansion and whether there are benefits to adding more employees.
• Benefits per employeeProfit per employee is another key manufacturing KPI as it shows how well a company is doing and identifies opportunities to increase profits.
• Absenteeism rateIn the manufacturing industry, absenteeism can lead to production downtime and lower production volume rates. It can also be an indicator of employee happiness and satisfaction. If high levels of absenteeism are reached, it needs to be thoroughly investigated. Workplace health and wellness programmes are one method of reducing absenteeism.