Explore guides that explain how manufacturing KPIs affect financial and operational decisions.
Manufacturing KPI Dictionary
Definitions, formulas and practical interpretation for the metrics that connect manufacturing operations to financial performance.
Browse manufacturing KPIs
Gross Margin
Formula: (Revenue − COGS) ÷ Revenue
Explore →Contribution Margin
Formula: Revenue − variable costs
Explore →Inventory Turnover
Formula: COGS ÷ average inventory
Explore →Days Inventory Outstanding (DIO)
Formula: Average inventory ÷ COGS × days
Explore →Days Sales Outstanding (DSO)
Formula: Average AR ÷ credit sales × days
Explore →Days Payable Outstanding (DPO)
Formula: Average AP ÷ COGS or purchases × days
Explore →Cash Conversion Cycle
Formula: DSO + DIO − DPO
Explore →Overall Equipment Effectiveness (OEE)
Formula: Availability × performance × quality
Explore →Production Yield
Formula: Good output ÷ total input
Explore →Scrap Rate
Formula: Scrapped output ÷ total output
Explore →Capacity Utilization
Formula: Actual output ÷ available capacity
Explore →Cost Per Unit
Formula: Total production cost ÷ units produced
Explore →Material Cost Variance
Formula: Actual material cost − standard/expected cost
Explore →Labor Cost Variance
Formula: Actual labor cost − standard/expected labor cost
Explore →EBITDA Margin
Formula: EBITDA ÷ Revenue
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