Quality KPIs are key metrics used to assess and enhance efficiency in industrial production. In this article, you’ll discover the 10 main quality KPIs used in manufacturing, how to implement them to reduce defects, optimize processes, and ensure products meet the highest standards — boosting customer satisfaction and your company’s competitiveness.
Quality in manufacturing is essential for industrial competitiveness. Implementing quality KPIs allows you to identify production issues, optimize processes, and comply with both internal and external quality standards.
In this article, you’ll learn which are the 10 most commonly used quality KPIs, how to apply them, and how they impact efficiency and customer satisfaction.
How to improve the quality of an industrial product?
Improving quality requires a comprehensive approach based on quality control indicators and continuous improvement strategies. Here are some best practices:
- Define product quality criteria for each production stage according to required standards.
- Monitor quality KPIs such as scrap rate, rejection rate, and nonconformities to detect issues in real time and apply corrective measures.
- Use quality dashboards to centralize data and track these indicators, optimizing decision-making and ensuring defect-free manufacturing.
- Assess raw material quality and work with reliable suppliers.
- Integrate indicators into a quality management system to foster operational excellence and increase customer satisfaction, ensuring a competitive product in the market.
What are quality KPIs and why are they important?
Quality KPIs, or quality control indicators, are metrics used to evaluate the performance of production processes, identify improvement opportunities, and ensure products meet the proper quality criteria.
Implementing them effectively helps to:
- Reduce costs and waste.
- Improve production efficiency.
- Increase customer satisfaction.
- Enable data-driven decision-making.
How to implement quality control indicators in your company?
For quality KPIs to be effective, it is necessary to:
- Define clear objectives aligned with company strategy.
- Select suitable continuous improvement indicators.
- Implement technological tools that enable real-time monitoring.
- Analyze results and apply corrective action plans.
How often should quality KPIs be reviewed?
The review frequency of quality KPIs depends on the type of indicator and the company’s control objectives. Ideally, they should be monitored in real time through digital dashboards, allowing immediate detection of incidents and corrective actions.
In addition to real-time monitoring, structured periodic reviews are recommended:
- Monthly to analyze trends, identify recurring defect patterns, and evaluate the effectiveness of corrective actions implemented.
- Quarterly to review strategic objectives, adjust improvement goals, and align KPIs with overall production and quality planning.
- Annually for internal audits, benchmarking with industry standards, and reviewing overall KPI evolution to ensure compliance with quality regulations and certifications.
10 KPIs to measure quality in manufacturing
Below are the 10 essential industrial KPIs for quality control in production.
1. First Time Quality (FTQ)
Measures the proportion of products that meet quality standards on the first attempt.
FTQ is a KPI that companies monitor to achieve defect-free manufacturing. Although ambitious, reaching first-time quality translates into significant cost reduction and improved company reputation.
2. Rejection rate
The rejection rate is another quality measurement indicator that calculates the percentage of defective products relative to the total produced.
A high rejection rate may indicate problems in manufacturing processes for various reasons. By monitoring and reducing this KPI, we can improve manufacturing quality and minimize costs associated with rework, order delays, and customer complaints.
3. Scrap rate
The scrap rate is a metric that reveals the volume of materials discarded during the production process. It is calculated by comparing rejected, unrecoverable materials with the total of good units produced.
Controlling scrap should be one of the first steps to avoid excess costs in raw material and energy use and to improve manufacturing quality.
4. Rework rate
The rework rate measures how often products need to be reprocessed or corrected due to defects or quality issues. It’s calculated by dividing the number of products requiring rework by the total number produced.
Rework generates additional costs in labor, materials, and time. It can also delay deliveries, negatively impacting customer satisfaction and overall production quality.
5. Raw material quality index
This indicator evaluates the quality of raw materials received by a company. It is calculated by comparing the amount of materials in good condition that meet quality standards with the total received.
The calculation typically involves inspection upon receipt, assessing aspects such as appearance, integrity, and specific characteristics that must comply with the company’s quality requirements.
This is a critical indicator for ensuring product quality before manufacturing begins and for detecting issues related to suppliers, storage, or transportation.
6. Customer complaint rate
A key KPI for measuring product quality, calculated by dividing the number of customer complaints received in a given period by the total number of customers or units sold during the same period.
A high complaint rate indicates that customers are experiencing issues or deficiencies in products or services, potentially damaging the company’s reputation and leading to additional costs, lost clients, and reduced competitiveness.
7. Customer satisfaction index
This KPI measures customer satisfaction levels with the company’s products and services through surveys, interviews, or other data collection methods.
A high satisfaction index shows that customer expectations are being met or exceeded, meaning products are high-quality, compliant, and valuable to the end user.
Conversely, a low satisfaction index may indicate issues in product quality or customer service, helping identify areas that require continuous improvement plans.
8. Cost of Poor Quality (CoPQ)
Most quality KPIs can be converted into costs, resulting in one of the most important indicators for companies: the cost of poor quality.
This KPI can be calculated in various ways—for example, by summing the production and material costs of rejected or scrapped units and/or costs derived from customer complaints or penalties.
Some companies even include lost sales opportunities — revenue missed due to quality-related problems.
9. Non-conformities
A nonconformity is an unexpected event that occurs during manufacturing and negatively affects the final product’s quality. Early detection of a nonconformity should be seen as an opportunity for improvement in quality management.
With MapexQM, it’s possible to identify them, streamline corrective actions to prevent recurrence, and reliably track related KPIs such as references and defects generating the most nonconformities.
10. Quality audits
For most industrial companies, conducting audits helps ensure production quality, identify process issues, comply with standards and regulations, and strengthen customer relationships.
With Mapex, you can monitor audit-related KPIs in real time through intuitive dashboards — for example, completion and compliance rates or the most common NOK inspection points.
Benefits of measuring and improving quality KPIs
- Reduction of defects and waste.
- Greater efficiency in production processes.
- Increased customer satisfaction.
- Optimization of operational costs.
- Compliance with quality standards and certifications.
Implementing these indicators through an MES platform like Mapex allows centralized management of quality plans, audits, and nonconformities — achieving defect-free manufacturing. So, if your goal is to improve manufacturing quality, don’t hesitate to contact our team.
Frequently Asked Questions about quality KPIs in manufacturing
What is the most important quality KPI in the industry?
The most important quality KPI depends on the production process and industrial sector. In most manufacturing environments, First Time Quality (FTQ) and Cost of Poor Quality (CoPQ) are critical indicators because they directly reflect process efficiency and economic impact.
What is the difference between scrap and rework?
Scrap refers to defective material that cannot be recovered and must be discarded, while rework involves correcting a product to meet quality standards. Both measure quality losses, but scrap directly affects raw material consumption and sustainability.
Which quality KPIs are recommended by ISO 9001?
ISO 9001 does not specify exact KPIs but requires measuring process performance and continuous improvement. Common indicators include nonconformities, customer complaints, quality audits, and Cost of Poor Quality (CoPQ).
Which quality KPIs can be monitored using an MES system?
An MES system allows monitoring quality KPIs such as FTQ, rejection rate, scrap, rework, nonconformities, and quality audits, centralizing information in real time for faster and more reliable decision-making.
