In recent years, the contract manufacturing (CMO) model has become one of the main strategies for developing the herbal medicine industry.
The Role of KPIs in Improving Contract Manufacturing Performance in the Herbal Medicine Industry
In recent years, the contract manufacturing (CMO) model has become one of the main strategies for developing the herbal medicine industry. This model enables innovative companies to produce their formulations at an industrial scale without heavy investment in production infrastructure.
However, success in contract manufacturing depends on continuous performance monitoring through accurate KPIs.
KPIs, or Key Performance Indicators, are tools used to measure the achievement of operational goals. In contract manufacturing, KPIs play a vital role in managing quality, cost, timelines, and client satisfaction. Key indicators typically include:
OEE (Overall Equipment Effectiveness) – measuring equipment productivity
On-Time Delivery – evaluating schedule accuracy
Yield Rate – assessing product quality
Complaint Rate – measuring client satisfaction
In many factories, production data is collected in isolation, reducing the accuracy of performance analysis. The solution lies in implementing digital KPI dashboards integrated with production and quality systems to enable real-time, data-driven decisions.
Padideh Giah Accelerator, in collaboration with health and technology experts, has developed a framework for designing, measuring, and analyzing KPIs in contract manufacturing, serving as a model for other innovation-driven sectors
