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Manufacturing Metrics – Page 2

Manufacturing metrics and KPIs measure the efficiency, quality, and output of production. Explore definitions, formulas, and benchmarks for tracking overall equipment effectiveness, defect rate, and production cycle time.

Default directory · A–Z · 14 metrics

Revenue per Employee

Revenue per Employee is a measure of the total Revenue for the last twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Also known as Revenue to Employee Ratio, this ratio is among the most universally applicable and is often used to compare companies within the same industry.

Scrap Rate

Scrap Rate is the ratio of discarded units or material to the total production run, expressed as a percentage. It includes both waste material and production rejects — any output that cannot be used or sold. Scrap Rate is one of the most important quality metrics in manufacturing, typically measured in units, pieces, weight, or volume. Tracking and reducing Scrap Rate lowers raw material costs, improves throughput, and reduces industrial waste.