Important Production Indicators That Help To Increase Productivity

We can say a thousand things about business, but ultimately business is a pure numerical game. Basically everything in business is determined by the number of profits and losses. Revenues generated, orders processed and other such data are of great importance in business. Some key performance indicators are becoming guiding measures for the company. Proper evaluation of these indicators is very important for successful business.

Production is one of the most important parts of the company. However, it is also the most challenging part. Achieving production efficiency is the most difficult part of this process. This involves too many players and changes easily. Production processes are generally complex and largely dependent on other processes as well. Unplanned downtime or inefficiency in even one process reduces the efficiency of the whole unit. Therefore, one production metrics cannot cover everything. From tracking production downtime to monitoring OEE, everything is important.

Improving these Production Metrics can increase the profitability of the entire process. However, too many indicators can distract attention from the main concept. So, for easier understanding, we will only discuss the most important indicators here.

Key measures of production efficiency

Production cycle time

This is the basic measure for most calculations at the production site. It measures the ideal production time for each product from start to finish. If you are able to shorten this time, your plant will perform better than your plant. If you keep it, you will remain consistent, but if this time increases your process will become inefficient.


This production metrics speaks of the average production capacity of each machine or process. It is important to remember that this is an average rather than a peak capacity. Therefore, if the throughput of any machine or equipment drops suddenly, this can mean serious problems. It is easy to measure and evaluate. You can never ignore this metric.

Capacity utilisation

We always want to achieve the best, but when we work in a team that is not possible at all times. Some production processes outperform, while others are worse than expected. Capacity utilisation is a measure of the percentage difference between the potential output power and the actual output power of the whole process. These important indicators point to process inefficiencies.

Overall Equipment Effectiveness (OEE)

This is the internationally recognized gold standard for Manufacturing Metrics to assess quality, speed and availability. The higher the percentage of OEE in your plant, the more efficient your process will be. A better OEE score will make your production process more reliable and profitable.


Rework has always been one of the greatest enemies of profit, time and reliability. However, in every process there are some defective goods that need to be reworked. Productivity measures the percentage of product manufactured to specification right from the first attempt.

Rejection by the customer

This is a measure of process failure in the production of standard products and comes directly from customers. The greater the number of rejecting customers, the greater will be your loss of profit and credibility in the market.

Percentage Planned vs. emergency maintenance contracts

Maintenance is a key activity in any production process. Machines that work will be exposed to damage and routine wear and tear. Planned maintenance helps to maintain their shape and achieve high performance and reliability. However, despite their best efforts, machines can still suddenly break down and cause panic and chaos. But such events should not be a normal scenario, as maintenance costs can increase many times over. One of the most important maintenance indicators is the relationship between planned and unplanned maintenance. The greater the difference, the better your profits will be. Measuring production downtime and tracking equipment can help reduce such cases.

Availability Ratio

It is a simple metrics showing the availability of assets. It is calculated by subtracting the downtime from the planned production time of any process or machine. You will get real availability. This is important for assessing the potential of the plant as well as finding ways to increase productivity.

Author: Madge E. Galvan

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