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10 Must-Track Engineering KPIs That will Drive Business Success

Muhammad Ali Iqbal
Technical Writer
Sep. 27, 2023


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How they did that?

Here's the secret... "by using the power of data analytics & business intelligence."

And if you also want to retain your soon going customers and even onboard hundreds of new ones then keep reading this article...

In today’s competitive business landscape, tracking the right Key Performance Indicators (KPIs) is crucial.

In this blog post, we will delve into the top 10 must-track engineering KPIs that have the potential to drive business success.

But first, let's discuss the concept of KPIs briefly!

Understanding the concept of Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are quantifiable measurements that help gauge the progress towards achieving specific objectives.

KPIs play a crucial role in measuring the success and performance of engineering projects. These metrics provide valuable insights into various aspects of engineering operations- enabling professionals to identify areas for improvement and drive success.

By tracking the right KPIs, engineering teams can optimize their performance, boost efficiency, and achieve their goals more effectively.

Engineering KPIs for Project Efficiency

Project efficiency is a crucial aspect of engineering performance that directly impacts the success of any project. It refers to the ability to complete projects on time, within budget, and meeting all the required specifications.

Adherence rate

One important KPI to measure project efficiency is the schedule adherence rate. This metric tracks how well a project adheres to its planned schedule.

By comparing the actual progress against the planned timeline, engineering teams can identify any delays or deviations early on and take corrective actions to ensure timely completion.

Additionally, monitoring the schedule adherence rate helps in identifying bottlenecks or inefficiencies in the project execution process.

Cost variance

Another KPI related to project efficiency is cost variance. This metric compares the actual costs incurred during a project with its budgeted costs.

A positive cost variance indicates that the project is under budget, while a negative variance suggests that it is exceeding the allocated budget.

Monitoring cost variance helps in controlling expenses, optimizing resource allocation, and ensuring financial stability throughout the project lifecycle.

Engineering KPIs for Resource Utilization

Resource utilization is a crucial aspect of engineering performance that directly impacts the overall efficiency and productivity of a project.

By effectively managing and tracking resource utilization, engineering teams can identify areas of improvement, optimize workflows, and ensure that resources are utilized to their full potential.

One key KPI for measuring resource utilization is the utilization rate. This metric provides insights into how effectively resources are being used within a given timeframe.

Utilization rate

It calculates the percentage of time that resources, such as equipment or personnel, are actively engaged in productive work. A high utilization rate indicates efficient resource allocation and optimal use of available resources.

Downtime ratio

Another important KPI is the downtime ratio. This metric measures the amount of time that resources are not in use due to maintenance, repairs, or other factors.

By monitoring downtime ratio, engineering teams can identify bottlenecks or inefficiencies in resource management and take proactive measures to minimize downtime.

Engineering KPIs for Quality Assurance

Quality assurance plays a crucial role in engineering- ensuring that products and processes meet the required standards and specifications.

It involves systematic monitoring and evaluation of various aspects of the engineering process to identify and rectify any deviations or defects. By implementing effective quality assurance measures, engineering teams can enhance their performance and drive success.

Defect rate

One essential key performance indicator (KPI) for quality assurance is the defect rate. This metric measures the number of defects found in a product or process during a specific period.

By tracking the defect rate, engineering teams can identify areas of improvement and take corrective actions to reduce defects. A low defect rate indicates that the engineering team is producing high-quality products or delivering error-free services.

On-time delivery

On-time delivery is also crucial for quality assurance. This metric measures the percentage of projects or tasks completed within the specified deadline.

Timely delivery is essential as it ensures that customers receive their products or services on time- avoiding any delays or inconveniences. Engineering teams should track this KPI closely to ensure efficient project management and timely completion of tasks.

Engineering KPIs for Customer Satisfaction

Customer satisfaction is a crucial factor in determining the success of any engineering project.

When customers are satisfied with the end result, it not only reflects positively on the engineering team but also helps to build a strong reputation for the organization as a whole.

Therefore, measuring and enhancing customer satisfaction should be a key focus for engineering teams.

Net Promoter Score (NPS)

One important KPI for measuring customer satisfaction is the Net Promoter Score (NPS). NPS is a metric that measures how likely customers are to recommend a product or service to others. It provides valuable insights into customer loyalty and can help identify areas where improvements can be made.

Customer feedback & reviews

Another KPI to consider is customer feedback and reviews. By actively seeking feedback from customers, engineering teams can gain valuable insights into their experiences and identify areas where they can make improvements.

This could involve conducting surveys, holding focus groups, or even implementing feedback mechanisms within products or services.

Engineering KPIs for Cost Management

Cost management plays a crucial role in engineering projects as it directly impacts the profitability and success of an organization.

Effective cost management involves tracking and controlling expenses throughout the project lifecycle to ensure that resources are utilized efficiently and wastage is minimized.

By implementing key performance indicators (KPIs) related to cost management, engineering teams can identify areas of improvement, optimize spending, and drive overall project success.

Cost Performance Index (CPI)

One critical KPI for effective cost management is the Cost Performance Index (CPI). This metric compares the actual costs incurred on a project to the planned costs.

A CPI value greater than 1 indicates that the project is performing better than expected in terms of cost efficiency. On the other hand, a CPI value less than 1 suggests that the project is over budget.

By regularly monitoring CPI, engineering professionals can identify cost overruns early on and take corrective actions to bring the project back on track.

Return on Investment (ROI)

Another important KPI related to cost management is the Return on Investment (ROI). ROI measures the financial return generated from an investment relative to its cost.

In engineering projects, ROI can be calculated by comparing the net profit gained from a project with its total investment costs.

A positive ROI indicates that the project has generated more revenue or savings than its initial investment- making it financially viable. By tracking ROI, engineering teams can prioritize projects with higher returns and allocate resources accordingly.


Tracking engineering Key Performance Indicators (KPIs) is crucial for optimizing performance and driving success in any engineering organization. By monitoring these metrics, companies can identify areas of improvement, make data-driven decisions, and ultimately achieve their goals more effectively.

By leveraging data analysis and insights provided by tools like Kyligence, organizations can make informed decisions, improve operational efficiency, enhance customer satisfaction, foster innovation, manage costs effectively, and can do so many more things to ultimately position themselves for long-term success in the competitive engineering landscape.