What are metrics used to measure efficiency, cost, and performance in manufacturing known as?

Key Performance Indicators (KPIs) are specific and quantifiable metrics used to evaluate the success of an organization or a particular activity in achieving its objectives. In manufacturing, KPIs play a crucial role in measuring efficiency, cost, and performance by providing clear benchmarks that can be tracked over time. These indicators help organizations assess how well they are performing in critical areas such as production output, quality control, and operational efficiency, thereby facilitating informed decision-making and continuous improvement efforts.

KPIs are typically aligned with strategic goals and can provide insights into various aspects of manufacturing processes, enabling companies to identify areas for enhancement, reduce waste, and optimize resource utilization. By focusing on KPIs, manufacturers can ensure that they are effectively monitoring performance and making data-driven adjustments to improve overall results.