ThatвЂ™s the case with throughput time, aka cycle time. Throughput timeДЄ lot of manufacturing KPIs are interrelated, but examining them separately will help you home in on where your challenges and opportunities for improvement lie. Every other KPI on this list (as well as those weвЂ™ve left off) is in some way aimed at increasing your throughput. Throughput is your rate of production, or how much quality product you make in a certain period of time (e.g., 2000 units/hour). Why? Because itвЂ™s the ultimate measure of your lineвЂ™s performance. WeвЂ™re surprised that it isnвЂ™t the top KPI on every list!ДЇrom our decades of experience working with manufacturers in a wide variety of industries, weвЂ™ve identified throughput as the single most important metricВ every company should be measuring.

You may be surprised to see throughput at the top of this list. But, by making the following production line KPIs central to your strategy, you can ensure youвЂ™re focusing on profitability and performance. There isnвЂ™t a single KPI framework that will be right for every company - your ideal KPIs will depend on your unique operations and challenges. So, which KPIs really matter? Meaning, at the end of the day, which ones will increase your bottom line? ItвЂ™s even possible that KPI improvements can decreaseВ your profitability ( see our article on why efficiency isnвЂ™t a good measure of performance).

You may spend time and energy (and likely money) improving some KPIs only to find that they donвЂ™t have an appreciable impact on your bottom line. But not all KPIs are directly related to profitability and growth. And, no doubt, they will all give you insight into some aspect of your operations. There is no shortage of key performance indicators (KPIs) you couldВ be tracking.

Off the line performance