CNC machine shops know the value of precise measuring. It’s what they do, often to less than .001” (¼ the width of a human hair) using computer numerical controlled machines and exact programming.
Yet, there’s more measuring going on — or at least there should be — within the walls of CNC machine shops: measuring performance. Key Performance Indicators, or KPIs, for the manufacturing industry are nothing new. They help businesses understand performance in order to make strategic adjustments to improve quality and efficiency.
As you’ll see, there are two main types of KPIs and dozens of metrics that can be used to measure performance. It can leave your head spinning faster than a PCD insert in a 90° square shoulder face mill (that’s a little CNC machining humor). So, this article is an attempt to simplify KPIs and provides an overview to them instead of a deep dive.