Resources
Blog

The Most Important Manufacturing Metrics Maintenance Managers Need to Know

Contents

See MaintainX in action

Take a live, one-on-one tour with a product expert to see how MaintainX can help you.
Book a Tour

You’re a maintenance manager. That means you’re responsible for maintenance metrics and maintenance metrics alone, right? Well, no. 

If you work in a manufacturing facility, there’s a whole other world of metrics you need to familiarize yourself with. Why? Because maintenance impacts manufacturing outcomes, for better or worse. 

The more you understand the link between your maintenance efforts and how they influence overall business outcomes, the more you’ll be able to prove the value of your team, and the more likely you’ll be to get the greenlight to grow your maintenance program in the future). 

In this article, you’ll learn every manufacturing metric that matters for maintenance managers, including what they mean, how to calculate them, and how maintenance can impact them.

Key takeaways

  • Manufacturing metrics provide measurable data to track operational performance, while KPIs focus on strategic business outcomes.
  • Priority metrics should align with specific business goals, like quality, efficiency, cost reduction, or customer satisfaction.
  • Start with five to seven core metrics to measure instead of tracking everything possible.
  • Real-time tracking and standardized processes across facilities drive the most significant operational improvements.

What’s the difference between manufacturing metrics and KPIs?

While manufacturing metrics and KPIs exist in the same world, they’re not the same thing. Manufacturing metrics refer to any quantifiable data that provides operational visibility for a manufacturer. Manufacturing KPIs take things a step further strategically. KPIs refer to performance indicators that are tied to business outcomes and drive decision-making and resource allocation. 

For example, overall equipment effectiveness (OEE) is a manufacturing metric that many facilities track over time. This metric becomes a KPI if the manufacturer’s goals are to maximize capacity and cut maintenance costs. You can think about metrics and KPIs this way: the moment a metric is used for executive reporting and strategic planning, it’s not a metric anymore. It’s a KPI. 

Why manufacturing-specific metrics matter for maintenance managers

If you’re responsible for maintenance KPIs, manufacturing metrics might not be at the forefront of your mind on any given day. But the more you understand about manufacturing metrics, the more you’ll start to see how much your maintenance program affects them. 

Think of it this way: if you were trying to increase revenue, you wouldn’t just isolate that one KPI to try to improve it. Revenue as a standalone number summarizes a result, while manufacturing metrics give you insight into the processes that influence that result. To understand why revenue is down, you’d have to look at many different stages of your manufacturing processes that may be increasing costs.

Similarly, maintenance metrics can tell you a lot about your manufacturing processes, and vice versa. Variations in manufacturing metrics may point to issues with equipment performance, production quality, or maintenance operations. But you can’t know that for sure unless you measure those things. Maintenance metrics directly connect to manufacturing outcomes (and, later on, business metrics like revenue) through factors like uptime, throughput, and cost control.

Manufacturing metrics are also critical for industry benchmarking. You can’t make meaningful comparisons if you don’t have the right data to do so. Additionally, regulatory compliance and safety requirements demand specialized tracking in manufacturing environments. If you’re tracking the right metrics, you’ll never come up short in an audit. 

Essential manufacturing metrics by category

There’s no shortage of manufacturing metrics you could encounter as a maintenance manager. To make it less overwhelming, let’s group our metrics into a few distinct categories and understand how each category can be influenced by maintenance. 

Production efficiency and productivity metrics

Metric What it measures How it’s calculated Why it’s important
Overall equipment effectiveness (OEE) How effectively equipment performs based on availability, performance, and quality. Availability × Performance × Quality Helps identify where and how to increase production efficiency.
Cycle time The total time required to produce one unit from start to finish. Net production time ÷ Number of units produced Can be benchmarked against takt time. A higher cycle time may indicate inefficiencies.
Takt time The maximum time allowed to produce one unit to meet customer demand. Available production time ÷ Customer demand Aligns production pace with customer demand and highlights bottlenecks.
Production volume Total units produced during operational hours. Units per hour × Hours of operation Tracks output growth and overall operational performance.
Units per labor hour The number of units produced during worker hours. Total units produced ÷ Total labor hours Measures workforce efficiency and productivity trends.
Value-added time percentage The percentage of production time spent on value-added processes. (Value-added time ÷ Total lead time) × 100 Highlights non-value-added waste and improvement opportunities.
Capacity utilization rate How much output is produced relative to maximum potential output. (Actual output ÷ Maximum potential output) × 100 Indicates how efficiently production capacity is being used.

How maintenance influences production efficiency and manufacturing productivity

Think of it this way: the primary job of maintenance is to make sure manufacturing equipment runs as much and as effectively as possible. Keeping a close eye on OEE and trends in production and capacity can help you shape your maintenance strategy accordingly. 

Quality and defect tracking metrics

Metric What it measures How it’s calculated Why it’s important
First-pass yield The percentage of output that is made correctly on the first pass, meaning it doesn’t need to be reworked. (Number of units completed without rework ÷ Total number of units produced) × 100 All three of these metrics help assess how well your production operations maintain internal quality standards. Low first-pass yield and right-first time percentages or high defect rates may point to a machine or training flaw.
Right-first time percentage The percentage of output that is made right the first time, without defects. (Defect-free units ÷ Total units produced) × 100
Defect rate The percentage of units that are defective, relative to the total units produced. (Number of defective units ÷ Total units produced) × 100
Scrap percentage The percentage of production materials that are unused in the final product (or scrapped). (Total scrap ÷ Total production) × 100 Scrap percentage can be high due to defects or inefficient processes that create a high amount of waste. Either way, a lower scrap percentage is ideal.
Rework costs The total cost to rework defective or damaged units. Units requiring rework × Cost per unit to rework High rework costs make a strong case for improving the metrics listed above. Units produced correctly the first time don’t require rework.
Customer complaint rates The total number of customer complaints received compared to the overall number of units purchased. Total complaints ÷ Total purchases Each of these metrics assesses the external impact of your product quality. Units may pass internal inspections with flying colors, but if a large percentage results in complaints and returns, your quality control may need review.
Return percentages The total number of units returned compared to the overall number of units purchased. Total units returned ÷ Total units purchased

How maintenance influences quality and defect metrics

With the right context, these metrics can show us where maintenance efforts may be lacking.  Is a faulty machine part to blame? Are a higher number of defects attributed to one specific shift worker? 

Once you can isolate a cause, you can act on it. And if maintenance is the culprit, auditing your inspection checklist or PM schedule for the asset in question can help turn things around. 

Maintenance and asset performance metrics

Metric What it measures How it’s calculated Why it’s important
Mean Time Between Failures (MTBF) The average time a piece of equipment is up and running before it fails or breaks down. Total operating time ÷ Number of failures It helps predict and plan maintenance schedules.
Mean Time To Repair (MTTR) How quickly your maintenance team is able to complete repairs, on average. Total repair time ÷ Number of repairs This metric directly impacts equipment availability and production capacity.
Planned maintenance percentage (PMP) How much maintenance work is scheduled, rather than reactive. (Planned maintenance hours ÷ Total maintenance hours) × 100 The higher your PMP, the better your chances of reducing unplanned downtime.
Preventive maintenance compliance rate How effectively your team sticks to its PM schedule. (Completed preventive tasks ÷ Total preventive tasks) × 100 A lower number may mean it’s time to audit your PMs.
Asset utilization How efficiently equipment is used compared to its full potential. (Actual output ÷ Maximum possible output) × 100 Low asset utilization could point to an inadequate maintenance strategy or aging equipment that should be replaced.
Equipment downtime categorization Whether one type of downtime is disproportionately affecting your total downtime. Amount of downtime in one category ÷ Total downtime One downtime category taking a significant lead over others may point to a process, maintenance, or training problem.
Maintenance cost per unit produced The average maintenance cost to produce one unit of product. (Total maintenance costs ÷ Number of units produced) A high ratio can be reduced with more mature maintenance practices.
Maintenance cost as a percentage of replacement value The amount that is spent to maintain a piece of equipment compared to how much it would cost to replace the asset. (Annual maintenance cost × 100) ÷ Replacement asset value If the cost to maintain an asset is higher than what it would cost to replace it, that’s eating into your revenue directly.

Maintenance metrics are essential in manufacturing

Maintenance KPIs aren’t just for maintenance teams. They impact the business for better or worse, so being able to show how you’re maturing, improving, and reducing costs for maintenance over time can help you advocate for a deeper investment in maintenance in the future. 

Cost and financial performance metrics

Metric What it measures How it’s calculated Why it’s important
Cost per unit produced How much it costs overall to produce one unit. (Direct material costs + Direct labor costs + Manufacturing overhead costs) / Number of units produced This metric includes both direct and indirect manufacturing costs to provide a holistic view of production costs. A high number could mean that materials, labor hours, or overhead costs such as manufacturing could be adjusted.
Material waste percentages The amount of waste your manufacturing processes are producing relative to the total amount of input. Amount of waste / Total input x 100 Material waste is directly linked to resource efficiency. The less waste, the better you’re optimizing resources.
Inventory turnover rate How efficiently you’re selling units produced. Cost of Goods Sold / Average inventory Higher turnover signals higher efficiency.
Energy consumption per unit How much energy it takes to produce one unit. Total energy consumed / Total output Lower consumption means higher sustainability. It’s important to track and try to reduce this number over time.
Labor cost variance The difference between your ideal and actual labor costs. (Standard hours x standard labor rate) - (Actual hours x Actual rate) A high variance needs attention. Higher labor hours and costs due to work slowdowns and repairs can eat away at your bottom line.
Overtime percentages How much overtime is being recorded compared to regular working hours. (Overtime hours / Regular hours) x 100 Overtime gets expensive quickly, and a high percentage may mean your maintenance or capacity planning needs an overhaul.

How maintenance influences cost and financial performance metrics

All of the metrics above can be improved with better maintenance practices. Maintenance impacts manufacturing overhead costs, labor costs, overtime, and material waste. The tighter your maintenance strategy, the more you can control costs.

How to implement manufacturing metrics effectively

Don’t try to boil the ocean 

The worst way to try to improve manufacturing metrics is to tackle them all at once. Start with five to seven core metrics that align to your organization’s primary business objectives (quality, efficiency, cost reduction, or customer satisfaction) and work at improving them. Once that handful of metrics is under control, expand your reach.

Set realistic targets

Metrics need the right context to make a difference. Take the time to establish baseline measurements you can compare against, and use industry benchmarks to set targets for improvement. Otherwise any change made is at risk of being totally arbitrary. 

Prioritize data quality

Whether it’s a metric or a KPI, capturing quality data is absolutely critical. Data needs to reflect the reality of your manufacturing operations, otherwise you’ll be making decisions based on fake facts. Ensure data accuracy through automated collection systems and standardized measurement processes.

Revisit often

Create regular review cycles to monitor metrics. Clearly outline who’s responsible for metric ownership and improvement actions, too. 

Using metrics to drive continuous improvement

Ultimately, tracking the right metrics (and taking the right measures to improve them) is the first step in continuous improvement. Using metric outcomes, you can do things like:

  • Perform a root cause analysis when metrics indicate performance decline
  • Benchmark performance across facilities and industry standards
  • Integrate with improvement methodologies like Lean, Six Sigma, or TPM programs
  • Run predictive analytics and trend analysis for proactive issue identification and resolution

Better maintenance means better manufacturing

The more you keep an eye on manufacturing metrics, the clearer the truth becomes: maintenance is inextricably linked to manufacturing outcomes. The more you tighten up and mature your maintenance program, the more you can influence the manufacturing KPIs that make or break your company’s bottom line. 

To learn more about how MaintainX can help you improve maintenance and manufacturing metrics, book a free tour today. 

Manufacturing metrics FAQs

What are the top five manufacturing KPIs every facility should track?

OEE is a fantastic KPI for any manufacturer to track. The higher your OEE, the more efficiently you’re producing units. Any other metrics you track should align with the organization’s overall goals and could include downtime, first-pass yield, cycle time, and throughput.

How do manufacturing facilities calculate overall equipment effectiveness (OEE)?

OEE is calculated as Availability x Performance x Quality

  • Availability = (Actual operating time / Planned production time)
  • Performance = (Actual production rate / Ideal production rate)
  • Quality = (Good units produced / Total units produced)

What maintenance metrics have the biggest impact on manufacturing performance?

Overall equipment effectiveness (OEE), mean time between failures (MTBF), and mean time to repair (MTTR) are three critical maintenance metrics that have a large impact on manufacturing performance. A high OEE means a manufacturer can produce units efficiently with little interruption from unnecessary downtime. A low MTTR means that failures and breakdowns are resolved quickly without impacting production or capacity too much. A high MTBF means that assets are running as they should, without the threat of unplanned downtime due to breakdowns.

How can manufacturing teams benchmark their metrics against industry standards?

Industry standards are widely available for most manufacturers. Once a benchmark is set, the manufacturer needs to get a baseline number of their own. Over time, they can work to get their baseline closer to (or better than) the industry standard.

What's the difference between leading and lagging indicators in manufacturing metrics?

Leading indicators (like downtime or defect rates) show you how manufacturing outputs may be impacted in the future by your current circumstances. Lagging indicators (such as customer satisfaction or return rates) show you how your past manufacturing processes affected your present outcomes.

How do manufacturing facilities ensure data accuracy when tracking multiple metrics?

Manufacturing data must be accurate, timely, and correctly contextualized to be helpful. Automated collection systems compile data with machine sensors without the risk of human error or the possibility of lag time. Ensuring data can be ingested, organized, and analyzed the same way all the time ensures standardization and accuracy.

Industries
author photo

The MaintainX team is made up of maintenance and manufacturing experts. They’re here to share industry knowledge, explain product features, and help workers get more done with MaintainX!

Learn more

BLOG POST
The Most Important Manufacturing Metrics Maintenance Managers Need to Know
BLOG POST
7 Ways To Tag Work Orders For Maintenance Reporting
BLOG POST
The Ultimate Guide To Improving Maintenance Maturity
BLOG POST
A Step-by-step Guide To Automating Work Orders
No items found.
Fill out the form to instantly download your maintenance checklist PDFs.

Fields marked with an asterisk (*) are required.

By submitting the form, you acknowledge our Privacy Policy.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you!
Your submission has been received! Check your email inbox for a calendar invite.

View related procedures to improve your maintenance operations

No items found.

“MaintainX is innovative and nimble. They provide an intuitive solution to help take your reliability program to the next level.”

See MaintainX in action
Fields marked with an asterisk (*) are required.

Fields marked with an asterisk (*) are required.

By submitting the form, you acknowledge our Privacy Policy.

By submitting the form, you acknowledge our Privacy Policy.
Thank you
Oops! Something went wrong while submitting the form.