KPIs help management assess how production is performing against set goals and identify areas that require improvement. There is no universal set of KPIs, as they may differ depending on the type of industry, production processes and company goals.
Common manufacturing performance indicators in manufacturing:
Production time: This indicator measures the total time it takes to convert raw materials into finished products. Shorter production time can indicate process optimization and loss reduction.
Equipment efficiency: It measures how much equipment is used in relation to the total available time. This can help detect potential equipment problems or optimize production schedules.
Percentage of scrap: Percentage of products that did not pass quality control and were declared scrap. A decrease in the rejection rate is a sign of improvement in product quality and efficiency of the production process.
Production costs per unit: This indicator measures the total cost of production divided by the number of units produced. Reducing costs per unit can increase profitability.