Watch Demo

25 KPI Examples For Manufacturing Companies (Updated for 2020)

By Jessica Wishart

    Wed, Oct 30, 2019 @ 12:00 PM KPIs & Dashboards

    Because Rhythm strategy execution software acts as a framework for pulling together into one single system many improvement initiatives and management tools that are popular among manufacturing companies, many of our most successful clients come from the manufacturing industry. One area that our clients come to us for help with is determining the right manufacturing KPIs (Key Performance Indicators) for their manufacturing metrics dashboard to drive performance.  Some production managers are not sure where to start, and many are measuring so many things that their manufacturing metrics are just noise, not driving action or change to drive your operating efficiency and product planning KPIs.

    Download our free KPI Guide to help you drive results with KPIs.

    Manufacturing KPI Examples

    25 KPI Examples for Manufacturing Companies

    Download the 25 manufacturing KPI examples infographic.

    These were the most commonly used metrics for companies in the Manufacturing Industry according to a survey conducted by Schenck and some specific KPIs that our clients are tracking on their manufacturing KPI dashboard, sometimes referred to as a KRA or Key Results Area to improve their production processes on the factory floor.

    1. Sales
    2. Quality
    3. Production/output
    4. Labor cost
    5. Delivery performance
    6. Total cost
    7. Material cost
    8. Safety
    9. Reject/scrap
    10. Equipment utilization
    11. Downtime
    12. Total cycle time
    13. Overtime
    14. Backlog, Open Orders
    15. On Time Delivery KPI
    16. Maintain Inventory Level
    17. Safety Recordables, Near Misses
    18. Stock outs
    19. Turnover
    20. YTD Sales, Invoiced sales, Sales vs. Budget
    21. New Revenue from Existing Customers
    22. Revenue from New Customers
    23. Training hours
    24. Internal Quality, DPPM
    25. # of Customer Issues
     

     

    While examples like the ones above can be helpful as you start thinking about the right manufacturing metrics, the key to the right manufacturing KPI dashboard for your company is not to start with someone else’s list without thought. If you truly want to derive value from your manufacturing KPI dashboard, you have to start by thinking about the business results you want to drive with your metrics.  Is it to better control the supply chain?  Are you looking to increase your overall equipment effectiveness (OEE)?  Do you need to control your raw materials industry?  Take a hard look at the areas in which your factory floor can use the most help.

    Your Critical Numbers determined in your Annual Planning and Quarterly Planning sessions are a good place to start for KPIs to track weekly on your manufacturing KPI dashboard. Then, consider what other results you are trying to achieve this quarter. This will help you come up with a handful of results indicators.  From there, think about what a leading indicator example KPI in manufacturing might be for each of your results indicators. The leading indicator should give you a picture of whether you are on track to hit your desired results or not.  You need to have the right balance of metrics on your manufacturing dashboard software, of course we recommend Rhythm Systems Strategy Execution Software.  Or, you can visit our comprehensive list of 179 KPIs to execute your balanced scorecard

    For example, if your results indicator for the quarter is "# of Customer Issues,” you might hypothesize that “On Time Delivery” is a leading indicator KPI for this result. You can test for a quarter to see if Red "On Time Delivery" gives you a heads up that the "# of Customer Issues" will rise and also be Red. If this holds up after some testing, you might peel back the onion a layer further and determine that “Maintain Inventory Level” is a leading indicator KPI for "On Time Delivery.” So, in this example, if you can keep the right inventory in stock to deliver on time, you will have fewer customer issues. Your production KPI dashboard can let you know early if you are heading for Red on customer issues so that you will have enough time to do something about it.  Don't forget to check out our 21 KPI Examples to Improve Manufacturing Performance and 33 KPI Examples to Measure Productivity & Prevent Organizational Drag to fill out your manufacturing KPI dashboard.  This can be the production metrics template that can be the first step in building your production metrics dashboard.

    For more about how Rhythm can help your manufacturing company grow with purpose, check out our Rhythm for Manufacturing Guide to help determine which manufacturing KPIs are best for your production line to help you build a manufacturing KPI template with production KPI examples. In this guide, Chris Cosper, our Head of Consulting and former CEO of a manufacturing company, shares how Rhythm’s Think-Plan-Do methodology can help you build stronger accountability into your company culture, develop growth strategies to drive revenue, and continuously improve everything. 

    Rhythm Systems helps mid-market companies accelerate growth through their suite of strategy & execution software products.  See how Rhythm Systems software can help you execute your KPI strategy and all of your strategic initiatives.

    Feel free to download our free KPI creator template or comprehensive KPI guide.

                                 

    See how Rhythm Systems Empowers Your KPIs to Drive Bottom Line Growth

     

    Rhythm Systems KPI (Key Perfomance Indicator) Guide

     

    Rhythm Systems KPI Resource Center for all you need to know about Key Performance Indicators.  Looking for some KPI Examples to help get you started? Check out our additional KPI and KPI dashboard blog articles:

    Comprehensive List of 179 KPI Examples for Any Industry

    4 Steps to Create a Leading Indicator KPI

    21 Production KPI Examples to Improve Manufacturing Performance

    27 KPI Examples for the Staffing Industry

    How top CEOs Close the Strategy Execution Gap

    5 Simple Steps to Create Useful KPIs (Video)

    10 Best Employee KPI Examples

    5 Tips to create, evaluate and use Key Performance Indicators (KPIs) to drive results in your business

    33 KPI Examples to Measure Productivity & Prevent Organizational Drag

    Employee KPI Examples: How to Measure What (or Who) You Want to Move (Video)

    KPI Examples for Successful Sales Teams

    Marketing KPI Examples

     

     Editor's note: This blog was originally posted on Oct. 20, 2014 and has been updated.

      request meeting with Rhythm Systems

    Comments