Are you aware of the importance of productivity indicators and how they can generate advantages for the industry? Read this article and stay in the know!

Productivity indicators, also known as KPIs, are tools used to measure operational efficiency and enable the necessary adjustments. Within the industry, they are paramount to understand processes and devise optimization strategies. There are manufacturing-specific productivity indicators that you need to know up close. In this article, we will share the industry’s top KPIs. Learn the impact these numbers can have on production!

The importance of KPIs for industry process monitoring

The creation and monitoring of productivity indicators in the industry are important for several reasons:

  • provide an overview of processes and process performance;
  • reduce waste;
  • reduce cost;
  • improve team effectiveness;
  • help detect production failures;
  • support decision-making such as expansion of activities and adjustments in production volume.

Leading industry productivity indicators

Number of manufactured products

This indicator is very useful to assess the production volume of specific sectors, shifts and teams. It enables the company to calculate production in a given period of time.

Man-hour Productivity

This metric focuses individually on each employee. It involves not only the operational sector, but also the administrative area. The idea is to measure the volume of products made or tasks performed in a defined period of time (usually one hour, but it can also be per shift).).

Hours worked and production

In this case, the indicator will reveal the number of hours needed to perform certain activities. When production takes too long, it is possible to review some processes to speed up completion, without losing quality or generating waste.

Average Time To Repair (ATTR)

Time between failure event and repair completion. It enables managers to learn the response time of maintenance teams.


The indicator will reveal how long an equipment or an employee was not working during the shift. A high figure is usually due to many failures, which directly interferes with the results of operations.

Mean Time Between Failures (MTBF)

How often has an equipment been failing? This interval can indicate, for example, that a machine is at the end of its life cycle and that its replacement would be more cost-efficient.

Installed Capacity Utilization Rate

Leaving part of your productivity capacity idle is also a form of waste. For example, if you can produce 100 thousand but is only producing 65 thousand, you have a 45% loss. That is what the installed capacity utilization rate is useful for.

Total cost of production

The sum of all costs involved in the production process, such as labor, inputs, equipment, supplies, etc. So, it is an important item for the pricing of services and products.

Inventory Turnover

It reveals how long products remain in stock, enabling the review of product entries and exits.

Contribution margin and profit percentage

After the sale, all direct and indirect costs of production are subtracted to determine the profit for each product. This enables businesses to identify their most cost-effective products. Paying attention to productivity indicators is essential to ensure the sustainable growth of your business. How ever, in industry, data is fundamental and key to guide decisions that optimize production.

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