Key KPIs for Manufacturing Industry

 In Analytics, Business Intelligence, Manufacturing Industry

KPIs or Key performance indicators helps the organizations analyze and assess the overall performance of their organization. It helps them measure the progress of their company in different aspects of business. Key performance indicators, as the name suggests, indicates the company’s performance, which in turn, helps them take the required measures to enhance their operational efficiency.

Different industries have different KPIs that helps them gauge the performance in terms of different entities. Every industry has KPIs as they help track the growth of their company and make better business decisions, thereby, helping them achieve their envisioned goals.

Manufacturing industry, also uses KPIs. The important KPIs that are calculated for the manufacturing industry are as follows:

1. Count

Count is one of the metrics that is measured for the effective functioning of a manufacturing industry. Manufacturing industry produces large number of goods on a day-to-day basis. Count refers to the measure of the amount of products manufactured on a daily, weekly, and monthly basis. Count, as the name suggests, keeps count of the goods being generated to help track the employee’s performance and the overall progress of an industry. It can also be calculated in terms of the shifts of the employees and their individual performances, which in turn, could be compared against the other employees, thereby, establishing healthy competition between the employees.

The annual count of the products produced helps companies gauge how their organization performed and this helps them take the required actions to further boost the growth of their company.

2. Downtime

This is one of the most important metrics that is measured to gauge the operational efficiency of an organization. Downtime refers to the period of breakdown of the machines within an industry. When a machine producing goods suffer a breakdown or major damage, the performance of that industry is bound to go down. So it is important to keep track of the running performance of the machines because if the machines don’t work then no goods are produced,which in turn, leads to zero profit for the company.

It shall be kept in mind to minimize the chances of downtime occurrence and the reasons for machine damage or machine reconstruction should be clearly stated by the workers.


Rate, in a manufacturing industry, refers to the speed at which goods get generated within a company. When it comes to what kind of rate is preferred then the answer to that question is medium. Medium rate, which is neither too slow nor too fast is the perfect rate for the goods’ production.

There is a need for balance within the slow and high rates and the reason for that is simple. If the products gets generated at a slow rate then the amount of profit generated goes down as the amount of goods produced is very low. Similarly, if the rate is high then the goods being produced can falter in quality. Hence, the balanced rate is desirable as it produces good quality products which helps generate better revenue for the industry and this helps in enhancing the progress of the company.

4. Task time

Different tasks gets allocated to different employees within an industry. Task time is the amount of time taken for the complete production of goods. Task time helps you figure out how much time a particular product requires for its complete and fitting manufacturing. Task time depends on a lot of different factors. It refers to a set of different operations that are undertaken to generate the goods.

This metric helps the industry and its workers a lot by analyzing the areas and factors which are causing hindrance to the faster production of a product. Once, the problem areas have been identified, then the industry can implement actions to overcome the faults in those areas, which in turn, improves the overall performance of the industry.

5. Reject Ratio

This is another important KPI to track in the manufacturing industry as it helps find the goods that are waste products. Given the amount of goods produced in a manufacturing industry, it is inevitable that a lot of goods that gets produced are waste products or unfit for consumption.

Reject ratio helps determine whether the products that are being manufactured are fit or not. If the goods being generated are unusable then they get rejected. So reject ratio helps keep up the working efficiency of an industry and helps them meet their desired goals effectively.

So these are some of the important KPIs that gets measured while producing goods in a manufacturing industry. If calculated properly, it helps uplift the current state of an industry and makes sure that that the industry is following the proper path. Also, it improves the performance of the industry by a great deal.

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