Product Sales as a Percentage of Plant Revenue

Product Sales as a Percentage of Plant Revenue

KPI Details

Product Sales as a Percentage of Plant Revenue measures the amount of revenue generated through the sale of products manufactured at the plant in relation to the total amount of revenue generated by the plant, or production facility, over the same period of time. Low values for this metric can be related to multiple factors, including inefficient sales processes (i.e., lead generation, sales quota attainment, etc.), slow cycle times, high rework rates, low quality of installed equipment (such low quality equipment can require frequent replacement or maintenance), poor preventative maintenance practices, inaccurate demand forecasting methods and sub-par production employee training and performance. A low value for this metric, furthermore, can expose the company to financial risks due to not being able to pay its liabilities on-time.

KPI Definition

The amount of revenue generated through the sale of products manufactured by the plant divided by the total dollar amount of revenue generated by the plant, or production facility, over the same period of time, as a percentage.

KPI Best Practices

• Accurate demand forecasting for manufactured goods
• Effective sales strategy focused on the sale of manufactured goods
• High performers in production attainment and machine uptime to meet production goals

KPI Calculation Instructions Product Sales as a Percentage of Plant Revenue?

Two values are used to calculate this KPI: (1) the dollar amount of sales generated through products manufactured by the plant, and (2) the total dollar amount of revenue generated by the plant, or production facility, over the same period of time. Include the sales of both products and by-products in the numerator. A plant, or production facility, should be considered to be an industrial site, usually consisting of buildings and machinery, or more commonly a complex having several buildings, where workers manufacture goods or operating machines processing one product into another. Do not include service or parts sales in this calculation.

KPI Formula :

(Product Sales Generated / Plant Revenue Generated) * 100