Productivity is always an important metric for manufacturing teams. With so many different functions involved within the manufacturing process, it becomes crucial to understand how well the inputs stack against the outputs.
This is why key performance indicators, or KPIs in manufacturing, are essential for tracking employee productivity and inefficiencies within the manufacturing process.
Their benefits are many:
- Helps production managers track worker performance
- Spots issues or problems within the system
- Promotes data-driven decision-making
While KPIs are vital metrics for manufacturers, they can be very time-intensive and error-prone if calculated manually.
This is where an automated solution like digital signage can step in and make a difference.
Digital signage helps enhance workforce productivity through seamless goal visibility by keeping important KPI metrics and other information visible all across the manufacturing floor.
But what are the 5 key performance indicators for manufacturing that you can use with digital signage? Let’s take a look.
KPI #1 - Maximizing Efficiency with OEE
When it comes to production KPIs, few metrics are as impactful as Overall Equipment Effectiveness (OEE).
This indicator evaluates equipment performance based on three key factors: availability, performance, and quality.
For any KPI of a production manager, this is a gold standard for identifying inefficiencies within your manufacturing process and maximizing your output.
Think of OEE as your manufacturing operation’s health report. Low OEE values highlight areas that need attention, such as unplanned downtime, slow cycles, or quality defects.
Addressing these issues can significantly improve your productivity and reduce waste—key goals for your manufacturing team.
That’s why using digital signage to display real-time OEE metrics across your facility makes it easier for teams to stay on top of equipment performance.
For instance, when a machine’s performance drops, digital signage makes the data visible instantly across the floor and alerts your workers to step in.
Among the 5 key performance indicators for manufacturing, OEE remains one of the most important production KPIs to track.
Also Read: Lean Manufacturing and Digital Signage: Streamlining Operations for Efficiency
KPI #2 - Boosting Quality and Reducing Waste with Yield
Yield is one of the most vital production KPIs in a manufacturing unit.
It reveals how many products are made right the first time, skipping defects and rework. Another method of assessing it is by measuring the number of sellable units compared to the total units produced.
Yield is not just about numbers—it represents efficiency, resource conservation, and a commitment to quality.
NIST reports human errors can cause 5–30% of manufacturing costs through scrap and rework.
Think about the cost savings if those inefficiencies were tackled head-on!
This is why yield is a must-have KPI for the manufacturing industry.
Now, add digital signage to the mix.
You can display real-time yield metrics on screens across your facility—this empowers your teams to track their goals and aim for 100% yield, which means no defective parts are produced.
However, if you’re having a low yield, it’s time for you to process inefficiencies in your production.
Ready to optimize your yield and minimize waste? Book a demo today to see how digital signage makes KPI tracking easy.
KPI #3 - Reducing Changeover Time
Among the most important KPIs in manufacturing, changeover time measures how quickly your team can switch from producing one product to another. This is a crucial process that can either keep your operations flowing smoothly or grind them to a halt.
It is also one of the most important KPIs of a production manager.
When your team transitions quickly between production runs, you can maintain a steady workflow and meet deadlines more reliably. Minimizing changeover delays also reduces idle time for equipment and labor, lowering overall production costs.
Another great benefit?
Shorter changeover times allow for smaller batch sizes, which in turn enable more flexibility in your manufacturing process and help reduce inventory holding costs.
For example, digital signage allows you to keep changeover times visible—ensuring that your teams stay aware of delays and work together to stay on track.
KPI #4 - Minimizing Production Downtime
Downtime is every manufacturer’s worst enemy, making it one of the most vital production KPIs to monitor.
Whether it’s unplanned equipment failures or extended maintenance breaks—downtime brings production to a halt and costs both time and money.
That’s why reducing downtime is a key process indicator for manufacturing plants.
Did you know that according to Forbes, the average automotive manufacturer loses $22,000 every minute when the production line stops?
With digital signage, you can monitor this KPI in manufacturing in real-time.
Digital signage lets you announce any disruption caused by downtime on a big digital screen across your manufacturing plant; everyone gets an immediate update.
This immediate visibility helps your workforce to respond quickly to equipment issues and prevent delays.
With these key process indicators for manufacturing front and center, you can ensure your production line is always prepared to prevent unplanned downtime.
KPI #5 - Reducing Cost Per Unit (CPU)
“Efficiency is doing things right; effectiveness is doing the right things.” This quote by Peter Drucker perfectly captures the importance of Cost Per Unit (CPU) as a KPI in manufacturing.
CPU measures the total cost of producing each unit and is a cornerstone of lean manufacturing.
Reducing CPU is an essential KPI for the manufacturing industry and helps boost profitability by ensuring the selling price of your product is always higher than the cost of producing it.
But often production costs can rise due to a variety of factors.
These factors include fluctuating raw material prices, increased labor costs, equipment inefficiencies, such as unplanned maintenance or outdated machinery, and higher-than-usual energy consumption.
When you’re tracking and sharing your CPU metrics through digital signage, you quickly pinpoint wasteful steps in your manufacturing process.
This helps your team tackle any inefficiencies, change their production process to meet targets, and overall present a more transparent view of your production line.
Among the 5 key performance indicators for manufacturing, reducing CPU is especially vital for fostering lean operations, boosting profitability, and maintaining high-quality standards.
Also Read: Top 6 Benefits of Using Digital Signage in Warehouse Operations
Keep Your KPIs Always at the Top with L Squared
If you’ve made it this far, now you know what the 5 key performance indicators are for manufacturing.
Remember to always track and share your KPIs in manufacturing at all times to ensure your business is always on top.
For insights into streamlining team performance and training strategies, explore A Plant Manager's Guide to Training New Hires in 30 Days.
With L Squared, your KPIs become more than numbers—they become actionable insights that help your team track their progress and stay aligned to their goals. This leads to better productivity.
Curious about the impact?
Contact L Squared today to discover how digital signage can elevate your KPI management.
Frequently Asked Questions
1) What are the 5 key performance indicators for manufacturing?
The 5 key performance indicators for manufacturing are:
- Overall Equipment Effectiveness (OEE): Measures equipment performance based on availability, performance, and quality
- Yield: Tracks the percentage of defect-free products made right the first time
- Changeover Time: Evaluates how quickly teams can switch between production runs
- Production Downtime: Monitors unplanned stops and their impact on productivity
- Cost Per Unit (CPU): Assesses the total cost of producing each unit to ensure profitability
Using digital signage, these KPIs can be displayed in real-time across the manufacturing floor to keep teams informed and focused on their goals.
2) What is a KPI for manufacturing?
A KPI for manufacturing is a measurable metric that evaluates the efficiency, quality, or productivity of a manufacturing process. Examples include metrics like OEE, Yield, and CPU. Digital signage enhances the visibility of these KPIs and ensures teams can track and address them in real time for better performance.
3) What is a key process indicator?
A key process indicator (KPI) is used to measure the efficiency or effectiveness of a specific process within manufacturing. For instance, monitoring changeover time ensures that production transitions happen efficiently. With digital signage, key process indicators can be displayed prominently across departments and help workers stay aligned to their goals.
4) What are 15 KPIs for a manufacturing plant?
Here are 15 KPIs that can be used in a manufacturing plant: Overall Equipment Effectiveness (OEE), Yield, Changeover Time, Production Downtime, Cost Per Unit (CPU), Scrap Rate, Throughput, Cycle Time, Inventory Turnover, First Pass Yield (FPY), Maintenance Cost Per Unit, Supplier Quality, Customer Complaints, Labor Productivity, and Energy Consumption. Digital signage can integrate and display all of these metrics while providing a centralized and real-time view for teams to improve overall manufacturing efficiency.
