7 Metrics and Key Performance Indicators for the Manufacturing Industry

11_AmazingExecDashboards_Blog_220x660Business Intelligence has evolved considerably from the days of simple reports. The top high performing global manufacturing companies understand this and have moved forward with implementing BI tools to increase profitability and outperform their competitors. This article will discuss some important Key Performance Indicators (KPIs) that can be analyzed for the small to medium-sized business and how to leverage this information to obtain maximum efficiencies in the manufacturing industry.


Slow-moving and obsolete inventory can be very costly to small and medium-sized businesses. Money tied up in inventory can impact the ability to have sufficient supplies on hand for products that are in demand. Real-time KPIs can be captured and displayed on a dashboard to help with management. They include:

Inventory turnover – The goal for any business is to achieve a balance of inventory relative to sales. A high inventory turnover indicates that you have less cash tied up in inventory, which is a good thing! You can increase your inventory turnover by reducing your inventory level and/or increasing your sales.

% of backorders – This KPI represents your percentage of unfulfilled orders. Monitor this KPI to help identify issues so you can improve on backorders to keep your customers satisfied.

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Perfect Order Rate – Retaining customers is one of the most important goals of a small or medium sized business. This KPI measures your ability to deliver a perfect order to your customer. This includes shipping the right product with no damage and on time. Use this measurement to gauge the efficiency of your business.

Inventory to Sales Ratio – Measuring the ratio of your in-stock inventory to your sales orders can indicate the performance and efficiency of your business and your ability to remain stable in any economic environment.


Monitoring production to achieve high efficiency, high-quality output and uptime is essential to the success of a manufacturing company. KPIs can be used to cut costs, improve productivity and increase profit. They include:

Count – The count is a measurement of the products produced and can be measured against a shift, a week or even since the last machine changeover. This metric can be used to determine the productivity of a worker and can be compared against other workers or shifts.

Downtime – This is an essential metric to monitor. If a machine is down and not producing products, that is money that isn’t being made. It’s good practice to record the reasons for the downtime to highlight common issues.

Task Time – Knowing the amount of time all tasks take is very useful in pinpointing bottlenecks and increasing efficiency in the production line.

Many other useful KPI’s can be tracked for purchasing, finance and sales and using these performance measurements are critical to the success of a business. Yurbi makes this level of technology available and affordable to small and medium-sized manufacturers. Please contact us for further information and expert advice on how to analyze and report on all your important data or request a demo of Yurbi and learn how to get started monitoring your KPIs today.

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