Build up your business by measuring our top 4 manufacturing KPIs
Running a manufacturing business means you have to keep track of a lot of different things. Using key performance indicators will remove a lot of stress from your day to day operations. Here is our top pick of manufacturing KPIs.
1. Training time: When operating a manufacturing business, you need highly skilled professionals to keep your orders going out to customers. Measuring this KPI will give you a solid understanding of how taking on new staff will impact your bottom line.
2. Backorders %: This helps you maintain customer satisfaction and brand loyalty. Any order you cannot fulfil (perhaps due to a lack of stock or staff sickness) will be measured here. This KPI will directly correlate with customer retention too – if you wish to obtain a loyal customer base, make sure your backorders don’t mount up.
3. Reject/Scrap: Measure this KPI and you’ll be able to identify the issues causing imperfect products. Is this an issue with staff, or is a machine not working to its optimum? Once you’ve identified the issue at hand, you can make changes to minimise the chances of the problem arising again.
4. Labour Cost: Keeping track of this metric is important in order to ensure that your profitability per item is not being compromised. You’ll need to measure this against the price of materials and staff wages to ensure you’re correctly pricing out your products.
Check out our KPI Library to find out more about which metrics you should be measuring.
Set up a forecast in Futrli to track training time.
Find out more about calculating your backorder percentage here.
Track scrap in your forecast.
Calculate your labour costs here.