PROFESSIONAL REFERENCE ยท PERFORMANCE MANAGEMENT

Industrial KPIs

A structured reference for measuring inventory, stores, purchase, planning, supplier, MRO, ERP and working-capital performance with consistent definitions, formulas, data sources and management actions.

01

Inventory Turnover Ratio

Measures how many times inventory is consumed or sold over a defined period relative to average inventory.

02

Inventory Days

Measures the number of days of inventory represented by average stock against the selected annual or period consumption basis.

03

Stock Coverage

Measures how long current usable inventory is expected to support demand at the selected consumption rate.

04

Inventory Accuracy

Measures agreement between physical stock and ERP or book stock for quantity, identity and location.

05

Inventory Service Level

Measures the proportion of demand or requirements fulfilled without unacceptable shortage, according to the defined service rule.

06

Fill Rate

Measures the proportion of requested quantity supplied immediately or within the defined fulfillment condition.

07

Stock-out Rate

Measures the frequency or proportion of demand occasions affected by stock unavailability.

08

Excess Inventory

Identifies inventory above the quantity required for the defined operating, service and replenishment policy.

09

Non-Moving Inventory

Measures stock with no issue or consumption during the defined review period.

10

Dead Inventory

Measures stock with no current movement and no identified operational requirement after structured review.

11

Inventory Ageing

Measures the age distribution of inventory to identify old, dormant, potentially obsolete or slow-moving stock.

12

Inventory Working Capital

Measures the financial resources tied up in inventory and the opportunity to improve cash utilization.

13

Inventory Value

Measures the monetary value of closing or average inventory according to the selected valuation basis.

14

Inventory Reduction

Tracks controlled reduction in inventory value or quantity without creating unacceptable service or operational risk.

15

Purchase Price Variance

Measures the difference between a reference or standard price and the actual purchase price for defined materials and periods.

16

Vendor OTIF

Measures supplier deliveries received On Time and In Full against the agreed delivery requirement.

17

Vendor Rejection Rate

Measures the proportion of received material rejected or found non-conforming against the defined quality basis.

18

Vendor Lead Time

Measures actual elapsed supplier lead time from the defined order or release event to receipt.

19

GRN Turnaround Time

Measures elapsed time between physical receipt and completion of the applicable goods receipt record.

20

PR to PO Cycle Time

Measures elapsed time between an approved purchase requisition and creation or release of the corresponding purchase order.

21

PO to Receipt Cycle Time

Measures elapsed time between the applicable PO commitment and physical receipt.

22

Purchase Cycle Time

Measures total time through the defined purchasing process from requirement initiation to order or receipt.

23

Material Issue Turnaround

Measures time required to process an authorized material issue request and provide material.

24

Emergency Purchase Rate

Measures the proportion or value of purchases classified as emergency against total purchasing activity.

25

Open PO Ageing

Measures outstanding purchase orders or lines by age, status and overdue condition.

26

RGP Outstanding

Measures Returnable Gate Pass materials that remain outside the store or unresolved beyond the expected return date.

27

Job-Work Outstanding

Measures material sent for external processing that remains outside, pending return or reconciliation.

28

Scrap Realization

Measures value realized from authorized scrap disposal relative to the quantity or book value processed.

29

Store Space Utilization

Measures the utilization of designated storage capacity while considering safe access, segregation and operating requirements.

30

Material Availability

Measures whether required material is available at the required time and location for the defined operation.

31

MRO Availability

Measures availability of maintenance, repair and operating materials against defined operational or maintenance requirements.

32

Critical Spare Availability

Measures availability of identified critical or insurance spares according to approved criticality policy.

33

Material Planning Accuracy

Measures how closely planned material requirements correspond with actual requirements, consumption or supply outcomes.

34

MRP Exception Rate

Measures the proportion of MRP results requiring exception action such as rescheduling, shortage resolution or parameter correction.

35

Replenishment Adherence

Measures whether replenishment actions occur according to the defined trigger, quantity and timing rules.

36

Safety Stock Adherence

Measures how frequently inventory remains within the defined protection policy and identifies repeated breaches.

37

Demand Forecast Accuracy

Measures the difference between forecast demand and actual demand using a defined forecast-error method.

38

Lead Time Variance

Measures variation between planned or standard lead time and actual lead time.

39

Inventory Carrying Cost

Measures the cost of holding inventory, including capital, storage, insurance, handling, deterioration and obsolescence components.

40

Inventory Transaction Accuracy

Measures the accuracy and completeness of ERP transactions for receipts, issues, transfers and adjustments.

41

Material Master Data Quality

Measures completeness, correctness, uniqueness and governance compliance of material master records.

42

MIS Timeliness

Measures whether required management reports are generated and distributed within the defined reporting timetable.

43

MIS Data Reconciliation

Measures whether reported MIS totals reconcile to authoritative ERP, physical or financial records.

44

Supplier Development KPI

Measures supplier improvement in quality, delivery, responsiveness, cost and capability over defined periods.

45

Purchase Cost Savings

Measures validated purchasing savings against a documented baseline or approved reference.

46

Total Cost of Ownership

Measures the complete economic cost associated with acquiring, operating, maintaining and disposing of a material or supply source.

47

Materials Working Capital Improvement

Measures improvement in cash tied up in inventory and related material processes while maintaining required service.

48

Stores Audit Compliance

Measures compliance with defined stores procedures, documentation, identification, preservation, stock control and audit requirements.

49

Physical Verification Compliance

Measures completion and closure of scheduled physical verification or cycle-count activities.

50

Cycle Count Accuracy

Measures agreement between counted stock and ERP stock for the items included in cycle counting.

51

Inventory Adjustment Rate

Measures frequency or value of stock adjustments and helps identify underlying transaction or control issues.

52

Store Space Productivity

Measures inventory handled or controlled relative to the storage area or capacity used.

53

Material Handling Productivity

Measures material movement or transaction workload relative to labor, time or handling resources.

54

Materials Management KPI Dashboard Framework

Defines a balanced management dashboard across inventory, stores, purchase, planning, suppliers, MRO and working capital.