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Definition: The rate at which products are produced or the amount of product produced in a certain period of time. Method of Measurement: Measured by counting the number of units produced over a standard time period.

Definition: Indicates how profitable a company is relative to its total assets. Method of Measurement: ROA = Net Income / Total Assets

Definition: The average time between equipment failures. Method of Measurement: MTBF = (Total Operating Time - Total Downtime) / Number of Failures

Definition: The rate at which sold products are returned by customers. Method of Measurement: Customer Return Rate = (Number of Units Returned / Number of Units Sold) x 100%

Definition: The percentage of scheduled preventive maintenance tasks that are completed on time. Method of Measurement: PMC = (Number of Preventive Maintenance Tasks Completed on Time / Total Number of Scheduled Tasks) x 100%

Definition: The total time from the beginning to the end of a process. Method of Measurement: Measured by tracking the time it takes for an item to go through the production process from start to finish.

Definition: The rate at which employees leave a company and are replaced. Method of Measurement: Employee Turnover Rate = (Number of Separations / Average Number of Employees) x 100%

Definition: The percentage of products that are manufactured correctly and without scrap the first time through the production process. Method of Measurement: FPY = (Number of Good Units Without Rework / Total Units Produced) x 100%

Definition: The rate at which finished goods are delivered to customers on time. Method of Measurement: OTD = (Total On-Time Deliveries / Total Number of Deliveries) x 100%

Definition: A measurement of the number of defects per million opportunities. Method of Measurement: Six Sigma Level is based on the DPMO (Defects Per Million Opportunities) calculation, which factors in the complexity of the process.

Definition: Measures the effectiveness and efficiency of machinery in manufacturing. Method of Measurement: OEE = (Availability Rate) x (Performance Efficiency) x (Quality Rate)

Definition: Measures how much of the available production capacity is being used. Method of Measurement: Capacity Utilization = (Actual Output / Potential Output) x 100%

Definition: The percentage of materials processed that do not result in a usable product. Method of Measurement: Scrap Rate = (Total Scrap / Total Production) x 100%

Definition: How many times a company's inventory is sold and replaced over a period. Method of Measurement: Inventory Turns = Cost of Goods Sold / Average Inventory Value