Manufacturing Quality Metrics
Formulas, benchmarks, and tracking guides for the quality KPIs that matter most to manufacturing teams — from scrap rate and first pass yield to Pareto analysis and cost of poor quality.
Core Metrics
- Scrap RateScrap Rate (%) = (Number of Scrapped Units / Total…The percentage of produced units (or material) that cannot be sold or used as-is and must be discard…
- First Pass Yield (FPY)FPY (%) = (Units Passing First Inspection / Total …The percentage of units that complete a production process correctly the first time, without requiri…
- Pareto Analysis (80/20 Scrap Distribution)Cumulative % contribution = (Sum of top-N defect c…Pareto analysis applies the 80/20 principle to defect and scrap data — identifying the roughly 20% o…
- Campaign Scrap Reduction (Before vs. After)Scrap Reduction (%) = ((Baseline Scrap Rate − Post…A measurement of scrap rate change between a defined baseline period and a post-campaign period, use…
- Rework RateRework Rate (%) = (Units Requiring Rework / Total …The percentage of produced units that fail initial inspection but are recoverable through additional…
- Cost of Poor Quality (COPQ)COPQ = Internal Failure Costs + External Failure C…The total financial cost of producing defective products, including internal failure costs (scrap, r…
- Yield LossYield Loss (%) = 100% − Yield (%)The percentage of input material or units that does not become saleable output. Yield loss encompass…