What is a Manufacturing KPI?
Measuring performance is essential for any business desiring growth in today’s incredibly competitive marketplace and unpredictable economy. Key performance indicators (KPIs) are metrics for measuring and monitoring all production processes and workflows over a specified period of time. To help your manufacturing company improve efficiency and reduce costs, you can establish specific, well-defined Key Performance Indicators (KPIs), which, simply put, are metrics for measuring and monitoring all production processes and workflows over a specified period of time. The data supplied by these metrics provides insights on how to optimize performance and to meet organizational goals.
Actively using KPIs for manufacturers can lead to performance improvements, including better decision making, increased profitability, and enhanced customer service. However, before jumping on the KPI bandwagon, it’s important to determine what you’re hoping to accomplish with the metrics you choose.
Do you want to:
- Improve the quality of existing products?
- Develop new products?
- Increase output?
- Improve customer satisfaction?
Once you answer these and other questions unique to your business, you’ll be ready to set up your manufacturing KPIs, but if you’re wondering what the best metrics for manufacturing are, then read on to find out.