Throughput is often considered the holy grail of production metrics. It measures the production capabilities of a machine or production line. Throughput gives manufacturers the necessary data to understand how much they can produce over a specified period.
Ideally, throughput should be monitored on a real-time weekly basis. This is because any considerable decrease in the number of units being produced can highlight a major problem — which you can then resolve as quickly as possible.
Throughput = # of units produced / time (day, week, month, one day)
3. Takt time
Takt time is the maximum permissible amount of time spent on manufacturing a product while meeting a client’s deadline. The KPI originates from German manufacturing, which is known for its efficiency.
Like cycle times, takt time helps you schedule production orders and helps you understand whether you can deliver on your promises before you make them.
Takt Time = Net Available Time / Customer’s Daily Demand
4. Production attainment
This manufacturing KPI measures production levels over a specific time and simultaneously calculates how often a target production level is achieved.
Production Attainment = # of Periods Production Target Met / Total Time Periods
5. Manufacturing costs per unit
Manufacturing businesses need to know the total costs associated with manufacturing a product. How else would you know how to price products? Typical manufacturing costs include labor, raw materials, overhead, and many others.
Manufacturing Costs Per Unit = Total Manufacturing Costs / # of Units Produced
6. Energy costs per unit
This is the manufacturing KPI that is increasingly relevant every year. More clients are demanding environmentally-friendly products, and energy manufacturing is becoming an expensive political weapon that can skyrocket the price of your products.
The energy costs per unit metric calculate the total energy costs and divide them by the units produced in a specified timeframe.
Energy Cost Per Unit = Total Energy Cost / # of Units Produced
7. Inventory turns
Excessive inventory might be helpful in an era of market disruptions, but if it’s becoming the norm, it’s usually a sign of poor sales and market turbulence. Inventory turns is a manufacturing KPI that will help you measure how often merchandise is sold over a specific time period.
Low ratio numbers indicate meager sales and redundant inventory. High ratio numbers stand for strong sales or insufficient stock.
Inventory Turns = Cost of Goods Sold / Avg. Inventory