Top 25 KPI's for the SME's in the manufacturing industry that is must-haves to achieve the organizational goals.

1. Top 25 KPIs for manufacturing industry
When we work with our clients to improve their business performance, the foremost
thing we do is ask them to set their KPIs. KPI stands for Key Performance Indicators, which
is nothing but a key health parameter to measure if the company is healthy or average or
is already sick. It is similar to how blood pressure, heart rate, BMI, glucose levels are an
important health indicator of a person’s physical health.
Listing the KPIs and measuring them regularly helps a company achieve its overall vision and
also stay ahead of competition. While there are many KPIs the organisation can set
depending on its business segment, here are the top KPIs we recommend to the
management of any manufacturing company. Management should set a target for each of
these KPIs and measure the actuals frequently to ensure the KPIs are achieved.
For ease of context, we have grouped these by the individual functions
Sales Related KPIs
1. Actual Sales vs Target
2. On-time delivery %
3. Customer rejection %
4. Cycle time from order to delivery
5. Average collection time (in days)
6. New customers acquired
7. Win-loss ratio
Procurement
8. Cycle time (in days) from indent to receipt of goods
9. RM QC rejection %
10. Average payment time (in days)
Production related KPIs
11. Machine/Labour utilization %
12. Machine/Labour efficiency %
13. On-time production %
14. QC rejection %
15. Wastage %
Inventory
16. Average inventory in days

2. After Sales Service KPIs
17. Average resolution time
18. Number of complaints
Finance Related KPIs
19. Gross Margin %
20. Net operating margin %
21. Return on Equity
22. Debt-equity ratio
23. Working capital to turnover ratio
24. Current and quick ratio
25. Interest coverage
We strongly believe that KPI’s and data visualization share a crucial bond which may affect
insights of your business. To get the actual power of your data, there’s a need to understand
this bond at core. As an entrepreneur you need a system where all the KPI’s are present on
a unified screen and a dashboard which provides access to information providing you right
visualization of your data.
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