How can product development teams determine whether they are meeting their goals or achieving core objectives? The answer lies in data. By monitoring analytics and measuring key metrics, product developers can ensure they are aligned with big-picture goals, make informed decisions, and compare their efforts to industry benchmarks. The right metrics also provide an impetus for continuous improvement.
Of course, there are countless metrics that manufacturers might monitor, and not all of them are equally useful. Consider 10 examples of product manufacturing metrics that are truly worth monitoring.
10 Essential Metrics for Product Manufacturing Teams
1) Time to Market
How long does it take for a product to move from its initial concept to its market launch? Tracking this metric is an important way for product manufacturers to isolate inefficiencies and expedite their product's delivery to market.
2) Product Development Cycle Time
A related metric, product development cycle time, denotes the average time required to complete one iteration of the product development process. Again, this can be a helpful way to identify any bottlenecks or efficiencies that may be present.
3) Quality of Product Design
How can you measure the quality of a product? This metric takes into account factors such as usability, functionality, and adherence to the desired specifications. It can be assessed both through testing and through more subjective data, such as feedback from users or focus groups.
4) Cost of Product Development
How much does it cost to develop a new product? This metric tracks the various expenses related to this process, including any costs associated with design, research, prototyping, and testing. It can be helpful for any manufacturer seeking ways to reduce total costs or to ensure alignment with budgetary goals.
5) Manufacturability Index
Manufacturability index refers to the ease with which a particular product may be manufactured at a scale. It takes into account a range of different factors, which typically include material needs, product complexity, assembly requirements, and production process compatibility.
6) Prototype Iterations
Getting a product ready for market usually means taking it through multiple versions, or iterations. This metric helps manufacturers determine the level of refinement and revision needed during the prototyping phase, which can be useful when planning resource allocation for any future product designs.
7) Prototype Defect Rates
Along the same lines, it can be helpful for product manufacturers to keep track of their prototype defect rates. This metric takes into account the percentage of defects or issues found during testing and product validation. Note that it's impossible to avoid defects altogether, but a sky-high defect rate points to some broader issues.
8) Product Cost vs. Target Cost
Product manufacturers will surely benefit from comparing their actual costs with their targets. This metric helps to ensure that the product is financially feasible and meets any budgetary parameters outlined during the prototype phase. This metric can guide future decisions about where and how to align these values.
9) Supplier Lead Times
How long does it take for key vendors to provide the materials and components needed for product development? Measuring this metric is essential for manufacturers looking to meet deadlines and stay on top of their protected product milestones.
10) Success Rate for Product Launches
A final metric for product manufacturers to assess is their successful launch rate. This measures the percentage of new products that meet or surpass sales targets within a predetermined time frame. It helps manufacturers to understand the effectiveness of product development in meeting market demands, along with customer expectations.
Keep an Eye on These Metrics
Today's manufacturers benefit from a wide range of data points, helping them make informed decisions and track progress toward their goals. The problem, often, is identifying the metrics that matter most. The ten listed here are not exhaustive but can certainly provide some meaningful guidance for product manufacturers looking to take a more data-driven approach. This, combined with a dynamic and agile product roadmap software such as gocious, can make a world of difference in terms of streamlining the product development journey.
