Manufacturing KPIs

Here are the main KPIs for the Manufacturing. They are part of the Manufacturing Dashboard or Balanced Scorecard.

Please see the following table.

-> Recommended bibliography about manufacturing KPIs

Activity Subject Calculation
Revenue Contribution to revenue Profit margin per product category
Cost Manufacturing Manufacturing cost vs last year vs budget
Manufacturing cost ÷ COGS
Fixed production cost
Variable production cost
Average production cost of the goods manufactured during the period
Production cost variance Actual production cost ÷ standard production cost
Incremental cost Cost associated with increasing production by one unit
Downtime cost Costs associated with equipment downtime
Direct material total variance Standard cost of material used for the actual production – actual cost of direct material
Direct labor variance Standard cost of the number of hours worked – actual labor cost
Value of finished products Finished products value ÷ total production costs
Labor costs per unit manufactured Total amount of labor costs÷ total number of units manufactured
Material cost per product Total material cost ÷ total number of units manufactured
Production cost per unit – Manufacturing cost per unit Total manufacturing cost ÷ total number of units manufactured
Scheduling Schedule attainment Production achieved ÷ production scheduled
Average daily production Average units produced per day
Material management Material defect caused by material Number of material defect due to the material quality ÷ total number of material defects
Cost of material defect due to the material quality ÷ total cost of material defects
Damaged material caused by error of workers Number of material damaged due to workers ÷ total number of material damaged
Cost of material damaged due to workers ÷ total cost of material damaged
Scrap value Scrap value ÷ production value
Material loss (surplus, giveaway or scrap …) Material loss ÷ total material consumed
Direct material usage variance Standard amount of materials specified for the number of units produced – actual quantity of materials used (at the standard cost per unit of material)
Direct material price variance Standard price of materials used in production – actual price of production materials
Work in progress Number of days Number of days during which units are in the production process without being completed as manufactured products
Number of units Amount of units that are in the production process without being considered as manufactured products
Value of work in progress Value of units that are in production process
Cycle time Manufacturing cycle timeAverage cycle time – ACT Time from the Firm Planned Order to the delivery of ordered final product
Cycle Time Ratio – CTR Standard cycle time ÷ real cycle time
Speed loss Actual cycle time ÷ ideal cycle time (minimum cycle time)
Production within takt time Number of times the production cycle time is below the maximum time allowed so that customer demand is met
Capacity Unused production capacity Production capacity – actual production realized
Unused production capacity costs Cost of actual production capacity – cost of production capacity used
Production capacity utilization Actual production ÷ production capacity
Production capacity Total volume of products that can be produced
Equipment Overall Equipment Effectiveness – OEE Availability ratio x Performance ratio x Quality ratio
Availability OEE Actual production time ÷ Theoretical production time
Performance OEE Cycle time x Actual Production÷ Actual Production time
Quality or Yield OEE (Actual Production – Rejected Production)÷ Actual Production
Equipment quality Usable pieces manufactured ÷ total pieces manufactured
Performance Pieces produced per operating time ÷ maximum production rate
Production performance efficiency Actual production run rate ÷ ideal production run rate
Capacity utilization Machines and equipment capacity used in production ÷ machines and equipment capacity available
Equipment availability Actual operating productive time and % of total time
Downtime MTBF – Mean-time Between Failure = total (running time – downtime) ÷ number of failures
Failure Frequency
Total of unscheduled maintenance downtime
Total of scheduled maintenance downtime
Quality Rework Time lost due to rework x productivity x price
Number of defect pieces rejected through the production process that are reworked to meet requirements
Time required for the rework process ÷ number of items reworked
Conformity Finished products in conformance with the preset quality standards ÷ total finished products manufactured
Defect density Number of known defects ÷ product size
Defects per unit Number of defects encountered ÷ total number of units produced
Quality control costs Quality control cost ÷ total production costs
Quality control labor cost rate Quality control labor cost ÷ total quality control cost
Out Of Specification OOS products per quality review Number of products that are Out Of Specification OOS ÷ number of quality review
Production rejects Number of parts that require rework of any kind during steady-state production
Startup rejects Number of rejects during warm-up, startup or other early production
Takt time Maximum time per unit allowed to produce a product so that customer demand is met
Defect Per Million Opportunities – DPMO Total Number of Defects ÷ Total Number of Opportunities for a Defect x 1 Million
Service Production on time Number of production orders finished on time ÷ total number of actual production orders
Production orders finished late Number of production orders finished later than planned ÷ total number of actual production orders
Production orders finished ahead time Number of production orders finished ahead than planned ÷ total number of actual production orders
Production delays due to raw material shortage Number of delays in production schedule due to a raw material shortage ÷ total number of delays
Production losses Finished products loss ÷ overall production
HR Downtime due to operator lack of training Equipment downtime due to operator’s lack of skills or knowledge ÷ total equipment downtime
Variable production overhead efficiency variance Direct labor efficiency variance in hours valued at the variable production overhead rate per hour
Direct labor efficiency variance Standard amount of labor time that should have been used ÷ actual amount of hours worked, at the standard rate of labor hours
Plant productivity Total manufactured value ÷ total employees

Recommended bibliography