Choosing your KPIs

Whether you’re manufacturing electronics or footwear, measuring the performance of your manufacturing process is critical. Research shows that knowing your key performance indicators or KPIs can positively impact sustainable manufacturing. But it’s vital to know which KPIs are worth measuring. Choosing your KPIs comes down to selecting the ones that directly impact your business the most and the stage of your business’ growth based on your industry. So, it’s important to assess your needs. Here are five effective KPIs to consider:

Overall Equipment Effectiveness (OEE)

The Overall Equipment Effectiveness or OEE metric provides an overview of your factory’s operational performance and how close it is in achieving its optimal performance. It quantifies your factory’s effectiveness based on performance, quality and availability. You can discover improvement opportunities when you check your OEE routinely. For instance, you can use smart tools, such as Prodsmart, to track your OEE and discover the cause of a productivity decline in your factory so you can fix the issue.

Average Defect Rate

The average defect rate is an ideal KPI to measure, especially if you’re manufacturing apparel. It helps identify product quality during the production process. For example, apparel manufacturers can use the average defect rate to determine how many jackets are defective. This helps them to quickly spot weak points in the manufacturing process that may cause the defect, such as lower-quality zippers or thread. This helps to save costs over time and reduce the number of defective products in the process.

Online Reviews

Online reviews are helpful for assessing customer satisfaction to improve your manufacturing process. For example, you can use advanced manufacturing software to assess the online reviews of electronics your company sells on platforms, such as Amazon or eBay. It can also quickly point out if any defective units were shipped. By measuring these KPIs, you can identify after-production weaknesses to develop further.


Poor utilization of your resources can slow down the production process. So, it’s critical to monitor how effectively you use the tools and workers in your manufacturing process by measuring utilization. For instance, you can assess the total time of parts assembly on an automotive assembly line by measuring employee utilization. You can then use this information to make data-backed decisions on whether or not it saves time and money to utilize the employees in a different work area versus using robots to complete the task.

Final Thoughts

Knowing which KPIs to track is as critical as monitoring the KPIs. Consider simplifying the process by automating KPI monitoring and using reliable services that leverage manufacturing software for small business, such as Prodsmart. With Prodsmart, you can utilize the assessment and analysis services to monitor your work processes and identify areas of opportunities for further improvement.

If you’re ready to take your manufacturing to the next level and improve your process, sign up with Prodsmart today.