Key Performance Indicators For Manufacturing Companies

Improving Efficiency

  • Capacity Utilization: Actual Output / Potential Output x 100
    This measures how much of your available capacity you are actually using on your production line. The higher the better. Buildings and equipment are expensive assets and you want to maximize their use. It also helps to manage what you sell by production centre, so you do not over or undersell a particular manufacturing line, thereby balancing the workload.
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