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Key Metrics Every Manufacturing Company Should Track

By October 10, 2023No Comments

When it comes to running a manufacturing company, data-driven decision-making is crucial for success. In an industry that is constantly changing and evolving, it is essential to have a firm grasp on key metrics that can help guide your company towards growth and profitability. By tracking these metrics, you can identify areas of improvement, make informed decisions, and stay ahead of the competition.

The Importance of Key Metrics

Key metrics are essentially measurable values that provide insights into various aspects of your manufacturing operations. By analyzing these metrics, you can gain a better understanding of how your company is performing and identify areas that need attention. Whether it’s measuring production efficiency, analyzing customer satisfaction levels, or monitoring supply chain performance, key metrics can provide invaluable insights that drive strategic decision-making.

1. Production Efficiency

One of the most important metrics for any manufacturing company is production efficiency. This metric measures how effectively your company is utilizing its resources to produce goods. By tracking production efficiency, you can identify bottlenecks in your processes, improve productivity, and optimize resource allocation.

To calculate production efficiency, divide the actual output by the standard output and multiply by 100. Aim for a high percentage, as it indicates that your company is producing goods at a rate that meets or exceeds expectations.

2. Overall Equipment Effectiveness (OEE)

Another vital metric for manufacturing companies is the overall equipment effectiveness (OEE). This metric provides insights into how well your equipment is functioning and its overall impact on production. OEE takes into account three key components: availability, performance, and quality.

To calculate OEE, multiply the availability, performance, and quality percentages together. A higher OEE score indicates that your equipment is operating efficiently, minimizing downtime, and maximizing productivity.

3. Customer Satisfaction

Customer satisfaction is a critical metric that can determine the success of your manufacturing company. Happy customers are more likely to become repeat customers and advocates for your brand. By tracking customer satisfaction levels, you can identify areas where your company can improve its products or services.

Consider implementing surveys or feedback systems to collect customer satisfaction data. Analyze this data to identify patterns and areas for improvement. Addressing customer concerns and feedback can lead to increased customer loyalty and higher overall satisfaction levels.

4. Supply Chain Performance

A well-functioning supply chain is vital for a manufacturing company’s success. By tracking key metrics related to your supply chain, you can ensure efficient operations and timely delivery of goods to customers.

Some key metrics to monitor include on-time delivery, inventory turnover, and supplier performance. Analyzing these metrics can help you identify areas of improvement, optimize your supply chain processes, and minimize disruptions.

5. Cost of Quality (COQ)

The cost of quality (COQ) metric provides insights into the financial impact of poor quality control. By measuring the cost of quality issues such as rework, scrap, and customer returns, you can assess the effectiveness of your quality control processes.

Reducing the COQ can result in significant cost savings for your manufacturing company and improve overall customer satisfaction. Regularly analyze your COQ and take proactive measures to address quality issues, such as implementing more robust quality control measures and investing in employee training.


Data-driven decision-making is crucial for manufacturing companies looking to thrive in a competitive market. By tracking key metrics such as production efficiency, overall equipment effectiveness, customer satisfaction, supply chain performance, and cost of quality, you can make informed decisions and drive growth. Remember, these metrics are just the tip of the iceberg; continually assess and adapt your metrics to ensure they align with your company’s goals and objectives.