top of page

The 10 Best Process Metrics and Why They Matter

Envisago Employees at Work, analyzing Data

When it comes to managing and improving business operations, process metrics are pivotal. They provide a quantifiable way to measure and analyse the effectiveness and efficiency of your business processes. By monitoring the right metrics, you can pinpoint areas that need improvement, increase productivity, optimise costs, and ultimately enhance customer satisfaction. But with a plethora of metrics to choose from, which are the most valuable? Here are the ten best process metrics and why they matter.

  1. Cycle Time: This measures the total time from the beginning to the end of a process, including both active and wait time. It's important because it directly impacts the speed of service delivery and efficiency. By reducing cycle time, businesses can improve productivity and customer satisfaction. Cycle time is a component of lead time - see point 4 below.

  2. Throughput: This metric measures the number of units a process can produce over a certain period. High throughput indicates a highly efficient process, and tracking it can help identify bottlenecks and areas for improvement.

  3. Process Efficiency: This is the ratio of the value-added time to the total time taken for the process. A high process efficiency means less wasted time and resources, leading to cost savings and improved productivity. Value added time is typically time spent on tasks that add value to the product or service from the perspective of the customer.

  4. Lead Time: The lead time measures the total time from when a process is initiated until its completion. It's crucial in supply chain and production environments as it directly impacts inventory levels and customer satisfaction.

  5. Error Rate: This metric tracks the number of errors or defects produced during a process. A lower error rate means higher quality and consistency, leading to improved customer satisfaction and lower rework costs.

  6. First Pass Yield (FPY): FPY measures the percentage of products or services that are produced correctly the first time without needing any rework. A high FPY means a high-quality process, saving costs, and enhancing customer satisfaction.

  7. Process Capacity: This refers to the maximum output a process can produce over a given period. It's essential for understanding the limits of your current process and planning for future growth or changes.

  8. Cost per Transaction: This metric helps businesses understand the direct and indirect costs associated with each transaction or process. Keeping this low means higher profits and better resource utilisation.

  9. Customer Satisfaction: Though not a traditional process metric, customer satisfaction is a critical indicator of process success. Measuring customer satisfaction helps businesses understand if their processes are meeting or exceeding customer expectations.

  10. Utilisation: This metric measures how much available capacity is being used. High utilisation indicates that resources are being used effectively, but over-utilisation can lead to burnout and quality issues.

In conclusion, selecting and monitoring the right process metrics can provide valuable insights into your operations, leading to informed decision-making, improved efficiency, cost savings, and enhanced customer satisfaction. Remember, what gets measured gets improved, so start analysing these metrics today to drive your business success.

For information on our process mapping and optimisation services, email us at or book a call with us today.


bottom of page