Expertly trained accountants with a deep understanding of the software and your industry,
Posted on March 22, 2023 at 8:26 PM
Written by Plumb
Key Performance Indicators (KPIs) are crucial metrics that help businesses measure their success and identify areas for improvement. For a manufacturing company, it's important to track KPIs that reflect the efficiency and effectiveness of their operations.
It’s also important to understand that not all manufacturing companies operate the same. There will be different KPI’s for different types of manufacturers, e.g. machine shops vs 3D printing manufacturers. However, there are some KPIs that are typically helpful to look at for most types of manufacturers and we’ve outlined them below.
Calculation: Total Scrap ÷ Total Product Run
The most important key to ensure these KPI’s are actionable is to share with key stakeholders. Review and use feedback from stakeholders to make improvements in areas that you see need changes. When KPI’s are tied to your business strategy and goal setting, they can drive massive action that will lead to positive change. If you have any questions, our expert outsourced manufacturing accounting professionals are ready to help!
Ecommerce companies have experienced rapid growth in recent years,...
If you are asking yourself these two questions, you’ve come to the...