As a shop manager, you're juggling daily shifts in schedules, material availability, and team coordination. Clear, real-time metrics help you catch problems early, stay on schedule, and keep your shop efficient and profitable.

Why Tracking Metrics Matters for Your Shop

When you're dealing with constant changes—design adjustments, labor shortages, or unexpected material delays—you can't afford to wait until projects wrap up to see how you're doing. Key metrics provide early warnings and actionable insights so you can adjust immediately and keep your shop running smoothly.

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Quick Reference Table: Essential Shop Metrics

MetricWhat It MeasuresHow It's MeasuredThroughputDaily completed unitsTotal units completed / time periodTool TimeDirect labor vs. total labor hours(Direct labor hours / Total labor hours) × 100%Progress vs. TargetActual progress vs. planned goalsActual units completed vs. planned unitsFirst Pass RatePercentage of units right on the first attempt(Units passing inspection first try / Total units) × 100%On-Time DeliveryPercentage of orders delivered by the scheduled date(On-time orders / Total orders) × 100%

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5 Key Metrics to Track Daily

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1. Throughput

Throughput is your daily production rate—the total number of units your shop completes each day. Monitoring throughput helps you quickly identify bottlenecks or inefficiencies that could delay your overall schedule.

Formula: Throughput = (Total Units Completed) / (Time Period)

Manual Tracking Tip: Keep a daily log or spreadsheet of completed units. Compare each day's throughput against your targets to identify patterns or sudden drops.

Tip: Building Swell can instantly visualize your real-time production, helping you quickly spot and address issues.

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2. Tool Time (Direct Labor Utilization)

Tool time measures how much of your team's working hours are spent directly on productive tasks rather than administrative duties, setup, or downtime. Higher direct labor utilization indicates efficient resource use.

Formula: Tool Time = (Direct Labor Hours) / (Total Labor Hours) X 100%

Goal: Aim for 60-70% direct labor utilization.

Manual Tracking Tip: Have team members log hours daily, clearly separating direct task hours from non-productive time.

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3. Progress vs. Target

Tracking your actual production progress against set targets provides immediate visibility into your project health. It allows you to quickly realign resources when you're falling behind.

Manual Tracking Tip: Set clear daily and weekly production targets. Regularly check actual completion against planned numbers and quickly address discrepancies.

Tip: Use Building Swell’s progress dashboards to quickly identify deviations and allocate resources efficiently.

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4. First Pass Rate (FPR)

FPR measures how frequently your shop completes tasks correctly on the first attempt, minimizing costly rework and delays.

Formula: FPR = (Units Passing Inspection on First Try) / (Total Units Produced) x 100%

Goal: Maintain an FPR of 90% or higher.

Manual Tracking Tip: Record inspections clearly, noting first-time passes and failures. Regularly review common failure points and adjust procedures accordingly.

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5. On-Time Delivery (OTD)

OTD measures your ability to consistently meet delivery deadlines, directly impacting client satisfaction and repeat business opportunities.

Formula: OTD = (On Time Orders) / (Total Orders) x 100%

Goal: Achieve 95% or higher OTD.

Manual Tracking Tip: Maintain clear shipment logs with scheduled and actual delivery dates. Immediately investigate delayed shipments to identify and rectify underlying issues.

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Other Important Metrics to Monitor Periodically

While daily attention should focus on the key metrics above, periodically review:

• Labor Efficiency: Ensuring optimal output per labor hour.
• Material Waste: Aim to keep material waste below 5%.
• Safety Incident Rate: Target an incident rate below 2% for a safe workplace.

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Real-Time Visibility with Building Swell

Metrics matter only if they’re actionable. Building Swell provides a live view of your shop’s performance—highlighting exactly what's working, where you're falling behind, and how to adjust quickly. With instant insights, your shop stays efficient, productive, and ahead of schedule.

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The Bottom Line

As a shop manager, proactive monitoring of these metrics is key to daily success. Staying ahead of problems keeps your shop running smoothly, your teams productive, and your projects profitable.