When it comes to improving the quality of your output, it’s important to “speak with data and manage with facts.” The key to improvement is establishing benchmarks and obtaining actionable data that point you to the issues you need to focus on. This is where quality metrics come in.

What Are Quality Metrics in Manufacturing?

Quality metrics are simply measurements that tell you how well your processes and products meet the standards you’ve set. They give engineers, operators, and quality teams a shared way to judge performance so everyone’s using the same yardstick.

They help answer basic but important questions:
Are parts built right the first time?
Where are defects, waste, or rework creeping in?
Do results hold steady from one shift to the next?

When you track these numbers over time, patterns start to show. You see what needs attention first and whether the fixes you’ve made are paying off. That’s why most continuous improvement work depends on them. No matter the type of plant if it is high mix or high volume - you need clear, current data on quality performance to steer decisions.

Today, many manufacturers move away from after-the-fact reports and audits. They use live production data instead, so they can spot problems earlier and adjust before scrap builds up. When quality checks are part of the digital workflow instead of an extra step, information moves faster and teams respond quicker. It keeps surprises to a minimum and helps the process tighten up over time.


Why Tracking Quality Metrics Matters

Tracking quality metrics isn’t about filling out reports. It’s about keeping control of the process. When you can see the right indicators as the work happens, you’re not chasing problems after the fact. You spot them early, act quickly, and keep waste from building up.

Improve Throughput
Reliable processes move faster. Every unplanned stop - whether it’s rework, an inspection hold, or a manual check it eats into throughput. Metrics such as Right-First-Time and OEE point to the exact spots where flow breaks down. Fixing those points gets production moving again without guesswork.

Reduce Waste
Scrap and rework hit more than material cost. They burn time, labor, and credibility with customers. Keeping an eye on Yield Rate and Scrap Rate shows where losses start and helps focus improvement work where it matters most. The result is steadier output and fewer hidden costs.

Support Compliance and Traceability
In regulated operations, proving quality is part of the job. Real-time tracking builds a digital record of every step i.e. what ran, when, and under what conditions. It makes audits faster, reduces surprises, and keeps accountability clear across shifts.

When data is collected automatically at the point of work instead of after the shift, it forms a live feedback loop. You’re not tracking for paperwork’s sake, you’re using the data to make each shift run a little smoother than the one before.


Here are the top 5 quality metrics to track:

1. First Pass Yield

First pass yield (FPY), also known as throughput yield (TPY), is an indicator of a line’s production and quality performance. FPY is calculated by dividing the number of “good” units without rework or scrap defects exiting a process by the number of units entering the same process over a set time period.

First Pass Yield (FPY) = Quality Units/Total Units Produced

Manufacturers should strive for a high and consistent FPY, which indicates that processes and equipment are reliable and scrap and rework costs are relatively low. First pass yield can be calculated manually or tracked with real-time production data with a digital FPY app.

Tulip First Pass Yield app
Tulip's First Pass Yield app

2. Scrap rate

Scrap rate is “the percentage of materials sent to production that never become part of finished products.”

In general, scrap rate can be calculated as follows:

Scrap rate = total scrap/total product run

The types of scrap included in the calculation may vary by company.

3. Supplier defect rate

Supplier defect rate is the percentage of materials from suppliers that don’t meet quality specifications. The quality of materials from suppliers can have a huge impact on quality costs. It’s also important to track the incoming supplier quality, or the percentage of materials received that meet the necessary quality requirements. Additionally, supplier chargebacks, or the total cost charged to suppliers for materials that don’t meet quality standards, must also be considered.

Supplier defect rate = % defective materials
Incoming supplier quality = % materials that meet quality requirements
Supplier chargebacks = total cost charged to suppliers for materials that don’t meet quality standards

This quality metric is important for understanding quality throughout the entire value stream.

4. Cost of Quality

Cost of quality is a metric that quantifies the total cost of quality-related efforts. This quality metric classifies quality-related costs and allows management and quality practitioners to evaluate investments in quality based on different cost areas. Cost areas include:

Costs of control

  • Prevention costs, which result from efforts to prevent defects from occurring
  • Appraisal costs, which result from detecting defects via inspection, testing, and audit

Costs of failure of control

  • Internal failure costs, which result from defects caught internally and discarded or repaired
  • External failure costs, which result from defects that actually reach customers.

Measuring the cost of quality helps an organization determine the potential savings from implementing process improvements.

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5. Return Material Authorizations (RMAs) and Returns

A return material authorization (RMA), also known as a return authorization (RA) or return goods authorization (RGA), is a part of the process of returning a product to receive a refund, replacement, or repair. RMAs can be issued for a wide variety of reasons, and they are a direct measure of a product’s quality and nonconformance to consumers’ requirements.

It’s a good idea to analyze the reasons customers are returning goods. Doing a Pareto analysis of the top 20% of factors that drive 80% of returns can help identify the root causes of the quality issues.

How to Track and Improve Quality Metrics with Tulip

Knowing your numbers is one thing. Being able to act on them while the work is still happening is another. Tulip gives manufacturers a way to do both.

With Tulip, quality data is captured, analyzed, and used directly on the shop floor. Instead of passing around clipboards or waiting for spreadsheets to update, operators enter data through interactive apps as the job runs.

Real-Time Data Capture in the Flow of Work
Operators use Tulip apps at their stations to log inspection results, scan barcodes, or record measurements. Each entry is tied automatically to the right part, order, and shift.

If a defect shows up, the operator can record it immediately by choosing the issue type or snap a photo. The data appears in dashboards within seconds. No paperwork to chase, no delays, and no transcription errors.

Dashboards That Make Problems Visible
Tulip’s analytics tools let teams build their own dashboards without programming. You can track Right-First-Time by line, monitor yield by batch, or keep an eye on OEE as production runs. The numbers update live, so supervisors can see trends forming instead of reviewing them after the fact.

When information is visible in real time, decisions get faster. You can adjust before scrap piles up or a process drifts out of control.

Alerts and Traceability Built In
Tulip can trigger alerts when quality limits are crossed and maybe a sudden spike in scrap rate or a missed inspection step. The right people get notified immediately, which keeps small issues from turning into big ones.

Every interaction is recorded automatically, creating a complete trace of parts, processes, and actions. That record makes audits easier and root-cause analysis faster.

The bottom line is

Quality metrics only matter if you act on them. Track the right numbers, surface them in real time, and use them to drive meaningful improvements with every shift, every day.

Frequently Asked Questions
  • How do you calculate yield or scrap rate?

    Yield Rate = (Good Units ÷ Total Units Started) × 100
    Scrap Rate = (Scrap Units ÷ Total Units Produced) × 100

    These numbers make it clear how much of your effort turns into usable product versus waste. They also highlight where efficiency is slipping.

  • What is OEE and why does it matter?

    OEE (Overall Equipment Effectiveness) combines three factors like Availability, Performance, and Quality to show how much of your equipment’s capacity is actually productive. A score above 85% is generally considered top-tier. Tracking OEE helps uncover hidden downtime, small stops, and quality losses that add up over time.

  • How secure is cloud-based quality data tracking?

    Cloud platforms built for manufacturing use strong safeguards like data encryption, user access controls, and compliance standards such as ISO 27001. Centralized systems also stay current through automatic updates and monitored environments, which often makes them more secure than on-prem setups that rely on manual maintenance

  • What kind of ROI can manufacturers expect from digital quality systems?

    Results depend on the process and scale, but most manufacturers start seeing impact within a few months. Typical gains include less scrap and rework, quicker audits, higher throughput, and shorter downtime related to quality issues. Even a small boost in Right-First-Time performance can drive noticeable cost savings.

  • How can digital tools improve quality performance?

    Digital systems let you capture and view data as production happens. They automate defect tracking, standardize inspection steps, and make trends visible right away. With that visibility, teams can make faster calls, correct problems earlier, and build a consistent improvement rhythm across shifts.

Streamline your quality management efforts with Tulip

Learn how leading manufacturers are using Tulip to capture real-time data, track production, and improve quality.

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