A KPI is a measurable value that indicates the effectiveness of manufacturing operations toward achieving predefined critical objectives.
In the manufacturing industry, KPIs are critical metrics that quantify production performance, efficiency, and quality control standards. They help manufacturers assess current processes to improve productivity, ensure compliance with industry regulations, and meet business objectives. KPIs must be specific, measurable, attainable, relevant, and time-bound (SMART) to provide actionable insights.
Overall Equipment Effectiveness (OEE) measures the percentage of manufacturing time that is truly productive.
OEE is commonly used in assembly line operations to determine the ratio of good products to wasted resources through availability, performance, and quality rates.
First Pass Yield (FPY) calculates the percentage of products manufactured correctly without rework.
FPY is utilized in the final stages of electronic manufacturing to ensure the assembly process meets design specifications, minimizing defects and associated costs.