In the previous blog, we explored 13 essential manufacturing KPIs covering productivity and financial performance—from throughput and cycle time to cost per unit and equipment ROI. These metrics laid the groundwork for tracking efficiency, uncovering hidden losses, and improving manufacturing profitability.

But that’s only half the picture.

To truly elevate factory performance, manufacturers must also monitor process reliability, workforce dynamics, and sustainability metrics. These additional KPIs provide the visibility needed to reduce downtime, ensure safety, empower employees, and meet environmental goals—all while keeping operations aligned with strategic priorities.

In this second part, we’ll walk you through other 17 manufacturing KPIs that complete the performance management puzzle. Let’s dive in.

Process Indicators

First-Pass Yield (FPY) - FPY tells you how many units pass inspection on the first go, requiring no rework or additional processing. High FPY values point to well-designed processes with minimal waste.

Formula:

Scrap Rate - Scrap rate represents how many finished units are defective and must be discarded or cannot be reworked. A high scrap rate flags inefficiencies and underscores areas needing quality improvement.

Formula:

On-Time Delivery (OTD) - OTD measures the percentage of orders that leave the factory on or before the promised delivery date. Strong on-time delivery fosters customer trust and can set you apart from competitors.

Formula:

Machine Downtime Rate - This KPI tracks the proportion of time equipment is idle—both planned (scheduled maintenance) and unplanned (breakdowns, operator shortages). Minimizing downtime is essential to efficient output.
 Formula:

Production Energy Efficiency - Production energy efficiency compares the total energy consumed to the number of units produced. By identifying where energy is wasted, manufacturers can trim costs and lessen environmental impact.

Formula:

Mean Time Between Failures (MTBF) - MTBF is a reliability metric that captures the average operational time between one equipment failure and the next. A longer MTBF points to robust machinery and proactive maintenance.

Formula:

Mean Time to Repair (MTTR) - MTTR calculates the average time it takes to fix equipment after a breakdown. A lower MTTR indicates efficient maintenance practices and less operational disruption.

Formula:

Process Compliance Rate - Process compliance rate monitors how frequently industrial operations meet established protocols and regulations, ensuring safety, consistency, and quality control. 

Formula:

Human Indicators

Percentage of Labor Costs - This KPI shows the share of labor costs—wages, benefits, taxes—as a portion of total revenue. Keeping a balanced ratio ensures profitability while maintaining a skilled workforce.

Formula:

Employee Turnover - Employee turnover shows how quickly people exit your organization within a specific timeframe. High turnover rates can inflate hiring and training costs and disrupt productivity.

Formula:

Workplace Accident Rate - This metric tracks how many incidents requiring medical attention occur per 1,000,000 hours worked. A low accident rate signals robust safety measures and a healthy culture.

Formula:

Overtime Rate - The overtime rate reveals if you rely excessively on extended hours to meet production goals. High overtime can strain your workforce and elevate labor expenses.

Formula:

Absenteeism Rate - Absenteeism tracks how many hours are lost due to sickness, unplanned leave, or other absences. Monitoring this KPI helps ensure consistent staffing and operational stability.

Explore how absenteeism impact operational efficiency and overall performance of factories for the next 5 years in our detailed blog. 

Formula:

Employee Training Rate - This KPI measures how much time is spent on upskilling and training your team. Investing in workforce development can boost morale and strengthen overall performance. It is advised to train workers effectively so factories can reduce employee turnover. Explore how Toyota trains blue-collar workers in our detailed blog. 

Formula:

Sustainability Indicators

Carbon Footprint per Unit Produced - This metric calculates the greenhouse gas emissions linked to each manufactured unit. Tracking and reducing it is crucial for meeting environmental targets and consumer expectations.

Formula:

Industrial Waste Recycling Rate - The industrial waste recycling rate shows how much waste is being recycled or reused instead of being discarded. Enhancing it curbs environmental impact and can lower waste management costs.

Formula:

Water Consumption per Unit Produced - Water consumption per unit clarifies how efficiently water resources are utilized in the production process. Tracking this KPI helps identify water-saving opportunities.
 Formula:

Final Thoughts: Transform Insights into Action

A data-informed approach empowers manufacturers to continually refine their operations, cut costs, and deliver consistently high-quality products. By keeping a close eye on these 30 KPIs—and analyzing the stories they tell—you’ll uncover the exact levers to pull for more profitable, sustainable growth.

Ready to track and optimize these KPIs in real time?

Platforms like Solvonext offer integrated, real-time monitoring, streamlining how you gather and act on operational insights. By adopting the right system and metrics, you can make strategic decisions that boost efficiency and elevate your manufacturing performance.