{"product_id":"aluminum-extrusion-kpi-metrics","title":"What 5 KPIs Should Aluminum Extrusion Manufacturing Business Track?","description":"\u003cdiv class=\"container_new_design\"\u003e\n\u003cdiv class=\"text-section text-1_new_design\"\u003e\n\u003cdiv class=\"line_top\"\u003e\u003c\/div\u003e\n\u003ch2\u003eKPI Metrics for Aluminum Extrusion Manufacturing\u003c\/h2\u003e\n\u003cp\u003eManufacturing success hinges on balancing high capital expenditure (CapEx) with operational efficiency and demand forecasting This guide outlines 7 crucial Key Performance Indicators (KPIs) for Aluminum Extrusion Manufacturing, focusing on margin, throughput, and asset utilization You must track Gross Margin % above 55% and ensure your Overall Equipment Effectiveness (OEE) stays above 75% We project 2026 revenue at $193 million, requiring tight control over indirect costs, which defintely account for about 218% of revenue Review financial KPIs monthly and operational metrics daily to catch deviations early\n\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"image-section image-1_new_design\" id=\"main_article_image\"\u003e\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\n\u003cspan style=\"color: #6067F2;\"\u003e7 KPIs to Track for \u003c\/span\u003eAluminum Extrusion Manufacturing\u003c\/h2\u003e\u003cbr\u003e\n\u003ctable id=\"dwnld_tbl_id\"\u003e\n\u003ctr\u003e\n\u003cth\u003e#\u003c\/th\u003e\n\u003cth\u003eKPI Name\u003c\/th\u003e\n\u003cth\u003eMetric Type\u003c\/th\u003e\n\u003cth\u003eTarget \/ Benchmark\u003c\/th\u003e\n\u003cth\u003eReview Frequency\u003c\/th\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e1\u003c\/td\u003e\n\u003ctd\u003eTotal Annual Revenue (TAR)\u003c\/td\u003e\n\u003ctd\u003eMeasures market scale; calculated by summing (Units Sold Average Selling Price) across all product lines\u003c\/td\u003e\n\u003ctd\u003e$193 million in 2026\u003c\/td\u003e\n\u003ctd\u003eMonthly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e2\u003c\/td\u003e\n\u003ctd\u003eGross Margin Percentage (GM%)\u003c\/td\u003e\n\u003ctd\u003eMeasures product profitability; calculated as (Revenue - COGS) \/ Revenue\u003c\/td\u003e\n\u003ctd\u003eAbove 55% overall\u003c\/td\u003e\n\u003ctd\u003eWeekly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e3\u003c\/td\u003e\n\u003ctd\u003eOverall Equipment Effectiveness (OEE)\u003c\/td\u003e\n\u003ctd\u003eMeasures press utilization; calculated as (Availability Performance Quality)\u003c\/td\u003e\n\u003ctd\u003e75% or higher\u003c\/td\u003e\n\u003ctd\u003eDaily\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e4\u003c\/td\u003e\n\u003ctd\u003eScrap Rate Percentage\u003c\/td\u003e\n\u003ctd\u003eMeasures material waste; calculated as (Weight of Scrapped Material \/ Total Weight of Billet Used)\u003c\/td\u003e\n\u003ctd\u003eBelow 20%\u003c\/td\u003e\n\u003ctd\u003eDaily\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e5\u003c\/td\u003e\n\u003ctd\u003eThroughput (Pounds per Hour)\u003c\/td\u003e\n\u003ctd\u003eMeasures production speed; calculated as total extruded weight divided by press run time\u003c\/td\u003e\n\u003ctd\u003eSpecific benchmarks per profile\u003c\/td\u003e\n\u003ctd\u003eDaily\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e6\u003c\/td\u003e\n\u003ctd\u003eReturn on Equity (ROE)\u003c\/td\u003e\n\u003ctd\u003eMeasures shareholder return; calculated as Net Income \/ Shareholder Equity\u003c\/td\u003e\n\u003ctd\u003eHigh growth (15462% initially)\u003c\/td\u003e\n\u003ctd\u003eQuarterly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e7\u003c\/td\u003e\n\u003ctd\u003eCost of Goods Sold (COGS) Unit Cost\u003c\/td\u003e\n\u003ctd\u003eMeasures unit cost stability; calculated by summing all direct material and labor costs per unit\u003c\/td\u003e\n\u003ctd\u003e$7100 for Battery Rails\u003c\/td\u003e\n\u003ctd\u003eWeekly\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/table\u003e\n\u003cdiv class=\"dwnld_btn_div\"\u003e\u003cbutton id=\"dwnld_btn_id\" class=\"dwnld_btn_clss\"\u003eDownload Table in XLSX\u003c\/button\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhich metrics confirm we are capturing high-value market segments effectively?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eConfirming effective segment capture means focusing on the profitability of specific product lines, not just total volume, by tracking Revenue per Unit by category and Customer Lifetime Value (CLV). For instance, if your Structural Airframe Brackets command an Average Order Value (AOV) of \u003cstrong\u003e$850\u003c\/strong\u003e, that segment is likely high-value, but you must compare that against the specific costs involved, which you can explore further in \u003ca href=\"\/blogs\/operating-costs\/aluminum-extrusion\"\u003eWhat Are Operating Costs For Aluminum Extrusion Manufacturing?\u003c\/a\u003e. Honestly, understanding the true contribution margin for these complex, low-volume jobs is defintely key to prioritizing resources.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003ePinpointing High-Value Revenue\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCalculate Revenue per Unit by specific profile type.\u003c\/li\u003e\n\u003cli\u003eCompare bracket revenue against standard profile revenue.\u003c\/li\u003e\n\u003cli\u003eIdentify categories exceeding \u003cstrong\u003e$700\u003c\/strong\u003e average order value.\u003c\/li\u003e\n\u003cli\u003eEnsure high-tolerance jobs justify setup costs.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003ePrioritizing Customer Lifetime Value\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eSegment customers by predicted 3-year CLV.\u003c\/li\u003e\n\u003cli\u003eTarget clients with repeat, complex design needs.\u003c\/li\u003e\n\u003cli\u003eMonitor churn rate for your top 20% revenue sources.\u003c\/li\u003e\n\u003cli\u003ePrioritize engineering partnership engagement time.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cp\u003eWhile Revenue per Unit shows immediate transaction quality, CLV confirms if you are building sustainable, high-value relationships that justify the upfront engineering partnership investment. If a client in the aerospace sector places 10 orders annually averaging \u003cstrong\u003e$15,000\u003c\/strong\u003e each, their CLV over five years might hit \u003cstrong\u003e$750,000\u003c\/strong\u003e, making them a segment priority worth protecting.\u003c\/p\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow do we control the volatile input costs and indirect manufacturing overhead?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eControlling input costs for your Aluminum Extrusion Manufacturing operation means rigorously tracking Gross Margin % (GM%) against your target, specifically isolating how Aluminum Billet Stock pricing swings affect profitability alongside the \u003cstrong\u003e218% indirect COGS\u003c\/strong\u003e percentage relative to total revenue. Understanding this cost structure is foundational, much like knowing how to structure your initial projections; for a deeper dive into the setup, review \u003ca href=\"\/blogs\/write-business-plan\/aluminum-extrusion\"\u003eHow To Write An Aluminum Extrusion Manufacturing Business Plan?\u003c\/a\u003e. If onboarding new clients takes longer than \u003cstrong\u003e10 days\u003c\/strong\u003e, churn risk defintely rises because fixed costs keep running.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eControlling Billet Stock Impact\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eImplement \u003cstrong\u003e90-day forward\u003c\/strong\u003e purchase contracts.\u003c\/li\u003e\n\u003cli\u003eSet a \u003cstrong\u003e5% maximum\u003c\/strong\u003e Billet Stock price variance threshold.\u003c\/li\u003e\n\u003cli\u003eReview supplier quotes quarterly, not annually.\u003c\/li\u003e\n\u003cli\u003ePass through material cost increases after \u003cstrong\u003e15% swing\u003c\/strong\u003e.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOverhead and Margin Discipline\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCalculate indirect overhead absorption rate weekly.\u003c\/li\u003e\n\u003cli\u003eTarget a minimum \u003cstrong\u003e35% Gross Margin %\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eAnalyze the \u003cstrong\u003e218% indirect COGS\u003c\/strong\u003e variance monthly.\u003c\/li\u003e\n\u003cli\u003eTie overhead spending directly to machine utilization rates.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eAre our high-cost manufacturing assets delivering maximum possible output?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eYou must measure Overall Equipment Effectiveness (OEE), which is the gold standard for measuring manufacturing productivity, and Die Changeover Time immediately to confirm the \u003cstrong\u003e$12 million\u003c\/strong\u003e 2500 Ton Extrusion Press is maximizing its output potential. If you're not tracking these metrics precisely, you're defintely leaving money on the table, which is why understanding how to increase profits in this space is crucial; check out \u003ca href=\"\/blogs\/profitability\/aluminum-extrusion\"\u003eHow Increase Aluminum Extrusion Manufacturing Profits?\u003c\/a\u003e\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003ePinpoint Press Efficiency\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCalculate OEE: Availability times Performance times Quality.\u003c\/li\u003e\n\u003cli\u003eWorld-class OEE target for complex machinery is \u003cstrong\u003e85%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eIf your current OEE is \u003cstrong\u003e65%\u003c\/strong\u003e, you are losing \u003cstrong\u003e20%\u003c\/strong\u003e of potential throughput.\u003c\/li\u003e\n\u003cli\u003eThis lost time directly impacts your ability to fulfill custom Aluminum Extrusion Manufacturing orders.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCut Changeover Waste\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eDie Changeover Time is the biggest drag on Availability.\u003c\/li\u003e\n\u003cli\u003eMeasure time from last good part to first good part on the press.\u003c\/li\u003e\n\u003cli\u003eIf a changeover takes \u003cstrong\u003e6 hours\u003c\/strong\u003e instead of a target \u003cstrong\u003e2 hours\u003c\/strong\u003e, that's \u003cstrong\u003e4 hours\u003c\/strong\u003e of lost revenue generation.\u003c\/li\u003e\n\u003cli\u003eFocus on standardizing setup procedures to shave \u003cstrong\u003e30%\u003c\/strong\u003e off changeover duration this quarter.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat is the minimum cash buffer required to handle capital expenditures and working capital swings?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eThe minimum cash buffer required for the Aluminum Extrusion Manufacturing operation is set by the projected low point of $\\mathbf{\\$749,000}$ in January 2026, a figure that must be sufficient to cover working capital demands and planned capital expenditures (CapEx).\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eMinimum Cash Tracking\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eProjected cash low point: $\\mathbf{\\$749k}$ (Jan-26).\u003c\/li\u003e\n\u003cli\u003eBuffer must cover working capital needs.\u003c\/li\u003e\n\u003cli\u003eWatch inventory cycles defintely closely.\u003c\/li\u003e\n\u003cli\u003eCapEx planning dictates the safety margin.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eInvestment Return Validation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIRR projection sits at $\\mathbf{527\\%}$.\u003c\/li\u003e\n\u003cli\u003eValidates high cost of specialized assets.\u003c\/li\u003e\n\u003cli\u003eSignals strong return on invested capital.\u003c\/li\u003e\n\u003cli\u003eUse this to structure debt financing terms.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cp\u003eThe minimum cash balance for the Aluminum Extrusion Manufacturing operation is projected to hit $\\mathbf{\\$749,000}$ by January 2026, setting the required floor for operational liquidity. This figure covers the necessary buffer for working capital swings and planned capital expenditures related to die creation and machinery upkeep. If you're looking at optimizing the underlying profitability of this heavy asset model, review \u003ca href=\"\/blogs\/profitability\/aluminum-extrusion\"\u003eHow Increase Aluminum Extrusion Manufacturing Profits?\u003c\/a\u003e. Honestly, managing that trough is key to surviving the early growth phase.\u003c\/p\u003e\n\u003cp\u003eThe $\\mathbf{527\\%}$ Internal Rate of Return (IRR) suggests that the capital structure supporting the Aluminum Extrusion Manufacturing business is highly efficient, assuming projections hold true. This metric validates the long-term viability of investing in specialized equipment and high-tolerance tooling required for custom profiles. A high IRR like this means the initial investment pays itself back very quickly relative to the expected returns.\u003c\/p\u003e\u003cbr\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\n\n\u003cdiv class=\"double_border\"\u003e\n\n\u003cdiv class=\"card_smpl_header\"\u003e\n\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\n\u003ch3\u003eKey Takeaways\u003c\/h3\u003e\n\n\u003c\/div\u003e\n\n\u003cul class=\"lst_crct_blog\"\u003e\n\n\u003cli\u003eAchieving the projected $193 million revenue target for 2026 depends heavily on maintaining a Gross Margin Percentage (GM%) above the critical 55% threshold.\u003c\/li\u003e\n\n\u003cli\u003eOperational excellence requires daily monitoring to keep Overall Equipment Effectiveness (OEE) above 75% and minimize material waste through scrap rate control.\u003c\/li\u003e\n\n\u003cli\u003eControlling indirect manufacturing overhead, which currently represents about 21.8% of revenue, is essential for protecting profitability against volatile input costs.\u003c\/li\u003e\n\n\u003cli\u003eSuccessful scaling hinges on maximizing the return from significant capital expenditures, validated by tracking a high target Return on Equity (ROE) of 15462%.\u003c\/li\u003e\n\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 1\n: \u003cspan style=\"color: #126CFF;\"\u003eTotal Annual Revenue (TAR)\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTotal Annual Revenue (TAR) shows your total sales dollars before any costs are taken out. It's the primary measure of market scale and how much money flows through the business from selling custom aluminum profiles. You need to track this \u003cstrong\u003emonthly\u003c\/strong\u003e to hit your \u003cstrong\u003e$193 million target for 2026\u003c\/strong\u003e.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShows raw market capture size instantly.\u003c\/li\u003e\n\u003cli\u003eDrives long-term strategic planning needs.\u003c\/li\u003e\n\u003cli\u003eDirectly links sales execution to scale goals.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eHides profitability issues (GM% is separate).\u003c\/li\u003e\n\u003cli\u003eCan be inflated by high volume, low-margin sales.\u003c\/li\u003e\n\u003cli\u003eDoesn't account for customer acquisition cost.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor custom B2B manufacturing, TAR benchmarks vary wildly based on niche specialization and client concentration. Your goal of \u003cstrong\u003e$193 million by 2026\u003c\/strong\u003e sets the scale you need to achieve relative to competitors in specialized automotive or aerospace supply chains. Hitting this number means you've captured a significant share of the high-tolerance profile market.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIncrease Average Selling Price (ASP) on complex jobs.\u003c\/li\u003e\n\u003cli\u003eBoost production throughput to accept more orders.\u003c\/li\u003e\n\u003cli\u003eSecure multi-year supply contracts with anchor clients.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou calculate TAR by adding up the revenue generated from every distinct product line sold over the year. This requires tracking both the volume sold and the specific price point for each profile type. The key is summing these components across your entire catalog.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nTAR = Sum of (Units Sold per Product Line Average Selling Price per Product Line)\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSay you sell two types of profiles: Standard Structural Beams and High-Tolerance Rails. You sold 10,000 Beams at $500 each, and 5,000 Rails at $10,000 each. You must add the revenue from both lines to get the total. This is defintely how you measure scale.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nTAR = (10,000 Units $500 ASP) + (5,000 Units $10,000 ASP) = $5,000,000 + $50,000,000 = $55,000,000\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eAlways segment TAR by product line for analysis.\u003c\/li\u003e\n\u003cli\u003eReview monthly against the \u003cstrong\u003e2026 projection\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eWatch for revenue concentration risk in top 5 clients.\u003c\/li\u003e\n\u003cli\u003eEnsure pricing reflects true engineering partnership value.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e \u003ch2\u003eKPI 2\n: \u003cspan style=\"color: #126CFF;\"\u003eGross Margin Percentage (GM%)\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eGross Margin Percentage (GM%) tells you the core profitability of every aluminum profile you sell before considering selling or administrative costs. It shows how effectively you are pricing your custom engineering work against the direct costs of materials and production labor. For custom extrusion, keeping this above \u003cstrong\u003e55%\u003c\/strong\u003e is essential for covering overhead and achieving real profit.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eValidate pricing on complex, low-volume jobs.\u003c\/li\u003e\n\u003cli\u003eIsolate high-cost production runs immediately.\u003c\/li\u003e\n\u003cli\u003eGuide sales toward higher-margin profile types.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIgnores fixed overhead like rent and salaries.\u003c\/li\u003e\n\u003cli\u003eDoesn't measure machine uptime or scrap efficiency.\u003c\/li\u003e\n\u003cli\u003eCan mask poor sales execution if pricing is too high.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor specialized B2B manufacturing like custom aluminum profiles, a target GM% above \u003cstrong\u003e55%\u003c\/strong\u003e is aggressive but achievable given your UVP on engineering partnership. Commodity extruders might see 30% to 40%. If your GM% dips below 50%, you're likely underpricing the engineering complexity or material handling, which is a serious problem for a capital-intensive business.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCharge a premium for rush orders or tight tolerances.\u003c\/li\u003e\n\u003cli\u003eAggressively reduce the Scrap Rate Percentage below \u003cstrong\u003e20%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eRenegotiate bulk pricing for primary aluminum billet supply.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou calculate this by taking total sales revenue and subtracting the direct costs associated with making those products-materials, direct labor, and manufacturing overhead. This result is your gross profit, which you then divide by the revenue to get the percentage. You must review this weekly to catch cost creep fast.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\n(Revenue - COGS) \/ Revenue\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSay a specific production run of structural components brings in \u003cstrong\u003e$100,000\u003c\/strong\u003e in revenue. If the direct costs-aluminum billet, die amortization, and direct labor-total \u003cstrong\u003e$40,000\u003c\/strong\u003e (the COGS), you calculate the margin percentage next. This leaves you with a gross profit of $60,000, which is a healthy 60% margin.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\n($100,000 Revenue - $40,000 COGS) \/ $100,000 Revenue = \u003cstrong\u003e60% GM%\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReview this metric every single week, not monthly.\u003c\/li\u003e\n\u003cli\u003eSegment GM% by the complexity of the profile die.\u003c\/li\u003e\n\u003cli\u003eIf COGS Unit Cost rises, GM% will immediately fall.\u003c\/li\u003e\n\u003cli\u003eEnsure you capture the full cost of the initial die creation.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 3\n: \u003cspan style=\"color: #126CFF;\"\u003eOverall Equipment Effectiveness (OEE)\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eOverall Equipment Effectiveness (OEE) tells you how much good aluminum you actually make compared to how much you \u003cem\u003ecould\u003c\/em\u003e make when the press is scheduled to run. It's the single number that combines downtime, speed losses, and defects into one utilization score. You need this \u003cstrong\u003edaily\u003c\/strong\u003e to manage capacity effectively.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003ePinpoints exact sources of lost production time immediately.\u003c\/li\u003e\n\u003cli\u003eLinks operational performance directly to Gross Margin Percentage (GM%).\u003c\/li\u003e\n\u003cli\u003eDrives focused daily improvement efforts on the press floor.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eRequires rigorous, accurate data collection for all three components.\u003c\/li\u003e\n\u003cli\u003eCan incentivize running bad quality parts just to boost Availability time.\u003c\/li\u003e\n\u003cli\u003eDoesn't account for material costs, like the high Scrap Rate Percentage.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor high-mix, high-tolerance manufacturing like custom aluminum profiles, hitting \u003cstrong\u003e75%\u003c\/strong\u003e is a solid operational goal that supports your revenue targets. World-class OEE often sits above \u003cstrong\u003e85%\u003c\/strong\u003e, but achieving that requires near-perfect setup reduction and quality control. If you're consistently below \u003cstrong\u003e60%\u003c\/strong\u003e, you're defintely leaving significant capacity unused.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReduce setup time (Availability) using rapid changeover techniques.\u003c\/li\u003e\n\u003cli\u003eStandardize run speeds to match the theoretical maximum (Performance).\u003c\/li\u003e\n\u003cli\u003eImplement rigorous in-process checks to catch defects early (Quality).\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eOEE is the product of the three core metrics: how long the machine was running, how fast it was running, and how much of that output was good. Focus on improving the lowest score first.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nOEE = Availability x Performance x Quality\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSay your press was scheduled for \u003cstrong\u003e10 hours\u003c\/strong\u003e (600 minutes) but lost \u003cstrong\u003e100 minutes\u003c\/strong\u003e to unplanned maintenance. That's an Availability of \u003cstrong\u003e83.3%\u003c\/strong\u003e (500\/600). During the 500 minutes running, you produced \u003cstrong\u003e450 pounds\u003c\/strong\u003e when the ideal cycle time suggests you should have made 500 pounds. That's \u003cstrong\u003e90%\u003c\/strong\u003e Performance. Of the 450 pounds produced, \u003cstrong\u003e430 pounds\u003c\/strong\u003e passed final inspection. That's \u003cstrong\u003e95.6%\u003c\/strong\u003e Quality.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nOEE = (500 \/ 600) x (450 \/ 500) x (430 \/ 450) = 0.833 x 0.90 x 0.956 = \u003cstrong\u003e71.8%\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReview the previous day's OEE score before the morning production meeting.\u003c\/li\u003e\n\u003cli\u003eBreak down Availability losses into planned versus unplanned stops.\u003c\/li\u003e\n\u003cli\u003eUse the Quality component to directly track and reduce the Scrap Rate Percentage.\u003c\/li\u003e\n\u003cli\u003eEnsure Performance measurement uses the \u003cem\u003eideal\u003c\/em\u003e cycle time for the profile, not the current average.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 4\n: \u003cspan style=\"color: #126CFF;\"\u003eScrap Rate Percentage\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eScrap Rate Percentage measures how much raw aluminum billet you waste during the extrusion process. This KPI is crucial because wasted material is direct cost walking out the door, immediately hitting your Cost of Goods Sold (COGS) Unit Cost. You must keep this number \u003cstrong\u003ebelow 20%\u003c\/strong\u003e and review it \u003cstrong\u003edaily\u003c\/strong\u003e to protect profitability.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eDirectly links process efficiency to material expense.\u003c\/li\u003e\n\u003cli\u003eFlags immediate issues with die alignment or billet loading.\u003c\/li\u003e\n\u003cli\u003eDrives focus on optimizing setup runs, improving Overall Equipment Effectiveness (OEE).\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIt only tracks weight loss, not the complexity of the lost profile.\u003c\/li\u003e\n\u003cli\u003eAggressive targets can cause operators to rush setups, hurting quality.\u003c\/li\u003e\n\u003cli\u003eIt doesn't isolate scrap caused by engineering changes versus production errors.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor custom aluminum extrusion, a scrap rate exceeding \u003cstrong\u003e30%\u003c\/strong\u003e signals severe operational problems or poor die design. Your target of \u003cstrong\u003eunder 20%\u003c\/strong\u003e is reasonable for established processes making standard profiles. For highly complex, high-tolerance aerospace components, you might see acceptable rates closer to \u003cstrong\u003e22%\u003c\/strong\u003e, but you should defintely push lower.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eStandardize die setup checklists to reduce trial-and-error runs.\u003c\/li\u003e\n\u003cli\u003eInvest in precise billet measuring equipment for accurate loading.\u003c\/li\u003e\n\u003cli\u003eReview end-piece trim procedures to minimize usable material loss.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou calculate this by dividing the total weight of material discarded by the total weight of raw billet fed into the press over a period. This gives you the percentage of material that never became sellable product.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nScrap Rate Percentage = (Weight of Scrapped Material \/ Total Weight of Billet Used)\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSuppose during a Tuesday shift, the team used \u003cstrong\u003e10,000 pounds\u003c\/strong\u003e of aluminum billet across all presses. After production runs, the weigh station recorded \u003cstrong\u003e1,800 pounds\u003c\/strong\u003e of unusable material from start-up runs and trimming.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nScrap Rate Percentage = (1,800 lbs Scrapped \/ 10,000 lbs Billet Used) = \u003cstrong\u003e18.0%\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cp\u003eAn 18% rate is good; it means \u003cstrong\u003e82%\u003c\/strong\u003e of your expensive raw material successfully converted into revenue-generating profiles.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTrack this metric against specific extrusion dies or product families.\u003c\/li\u003e\n\u003cli\u003eSet an immediate alert if the rate crosses \u003cstrong\u003e25%\u003c\/strong\u003e for any 24-hour period.\u003c\/li\u003e\n\u003cli\u003eCompare daily scrap rates against the target Gross Margin Percentage.\u003c\/li\u003e\n\u003cli\u003eEnsure scrap weight measurement happens immediately after cutting, before cooling\/handling loss.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 5\n: \u003cspan style=\"color: #126CFF;\"\u003eThroughput (Pounds per Hour)\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThroughput (Pounds per Hour) tells you how fast your extrusion presses are actually running. It measures the total extruded weight divided by the total press run time. This metric is the backbone of operational efficiency, showing if you are hitting speed targets for specific aluminum profiles, and it needs to be reviewed defintely every day.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eDirectly links machine time to output, improving Overall Equipment Effectiveness (OEE).\u003c\/li\u003e\n\u003cli\u003eHigher throughput lowers the fixed cost absorbed per pound, boosting Gross Margin Percentage (GM%).\u003c\/li\u003e\n\u003cli\u003eAllows for precise scheduling and meeting client delivery windows, supporting Total Annual Revenue (TAR).\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIt ignores setup and changeover time, which heavily impacts daily averages.\u003c\/li\u003e\n\u003cli\u003eIt doesn't account for quality; fast output of scrap material is useless.\u003c\/li\u003e\n\u003cli\u003eBenchmarks must be profile-specific; averaging hides critical bottlenecks.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eBenchmarks vary widely based on the aluminum alloy, the complexity of the die, and the required tolerance. A simple, thick structural profile might hit \u003cstrong\u003e1,500 lbs\/hour\u003c\/strong\u003e, while a complex, thin-walled electronic component might only manage \u003cstrong\u003e400 lbs\/hour\u003c\/strong\u003e. You must set internal targets for every SKU because comparing them directly is meaningless for operational control.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReduce non-productive press time between runs by standardizing changeovers.\u003c\/li\u003e\n\u003cli\u003eOptimize billet heating cycles to maintain consistent extrusion temper\nature.\u003c\/li\u003e\n\u003cli\u003eTrain operators to quickly diagnose and correct minor profile deviations mid-run.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTo find your Throughput, you take the total weight of good material that came off the line and divide it by the actual time the press was running that specific job. This calculation isolates the pure production speed, ignoring idle time.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nThroughput (lbs\/hr) = Total Extruded Weight (lbs) \/ Press Run Time (hours)\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSay your team ran a batch of standard construction profiles for a full shift. You extruded \u003cstrong\u003e45,000 pounds\u003c\/strong\u003e of material, and the press was actively running for \u003cstrong\u003e30 hours\u003c\/strong\u003e across that period, accounting for all scheduled production runs.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nThroughput (lbs\/hr) = 45,000 lbs \/ 30 hours = 1,500 lbs\/hr\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e1,500 lbs\/hr\u003c\/strong\u003e is your throughput for that specific profile and set of operational conditions. If the target was 1,800 lbs\/hr, you know you lost \u003cstrong\u003e300 lbs\/hr\u003c\/strong\u003e of potential output.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTrack this metric per shift, not just daily totals, to manage operator performance.\u003c\/li\u003e\n\u003cli\u003eCorrelate low throughput days with high Scrap Rate Percentage figures.\u003c\/li\u003e\n\u003cli\u003eEnsure 'Press Run Time' excludes all planned maintenance downtime.\u003c\/li\u003e\n\u003cli\u003eUse historical throughput data to better estimate Cost of Goods Sold (COGS) Unit Cost.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 6\n: \u003cspan style=\"color: #126CFF;\"\u003eReturn on Equity (ROE)\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eReturn on Equity (ROE) shows how much profit the company generates for every dollar shareholders have invested. It's the ultimate measure of capital efficiency for owners. For this aluminum extrusion business, it tells us if the equity base is working hard enough to generate returns.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShows management's effectiveness in using owner capital.\u003c\/li\u003e\n\u003cli\u003eDirectly links operational profit (Net Income) to shareholder wealth.\u003c\/li\u003e\n\u003cli\u003eHelps justify future equity raises or dividend policy decisions.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCan be artificially inflated by high debt levels (leverage).\u003c\/li\u003e\n\u003cli\u003eDoesn't account for the cost of capital or risk taken.\u003c\/li\u003e\n\u003cli\u003eInitial startup ROE figures, like the projected \u003cstrong\u003e15462%\u003c\/strong\u003e, are often misleading due to small initial equity bases.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor stable, established manufacturing firms, a good ROE often sits between \u003cstrong\u003e15% and 20%\u003c\/strong\u003e. However, early-stage, high-growth ventures like this extrusion business might show extreme volatility, especially early on before scaling stabilizes the equity base. Benchmarks are less useful until the company matures past its initial funding rounds.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIncrease Net Income by boosting Gross Margin Percentage (GM%) above the \u003cstrong\u003e55%\u003c\/strong\u003e target.\u003c\/li\u003e\n\u003cli\u003eImprove asset turnover by increasing Throughput (Pounds per Hour) without adding fixed assets.\u003c\/li\u003e\n\u003cli\u003eManage the equity base; avoid unnecessary capital injections if operations can fund growth.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eCalculating ROE is straightforward division. You take the final profit after taxes and interest and divide it by the total equity funding the business. For this business, the initial target is extreme. Still, the formula remains the same.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nROE = Net Income \/ Shareholder Equity\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTo hit the initial target of \u003cstrong\u003e15462%\u003c\/strong\u003e, the relationship between Net Income and the initial equity base must be precise. If we assume the initial Shareholder Equity base is \u003cstrong\u003e$500,000\u003c\/strong\u003e, the required Net Income to hit that target would be substantial. Here's the quick math showing how that initial target is reached:\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\n15462% = $77,310,000 \/ $500,000\n\u003c\/div\u003e\n\u003cp\u003eThis calculation shows that while the metric is simple, achieving extremely high initial ROE targets requires either massive profitability or a very small equity base supporting the operations.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReview ROE \u003cstrong\u003equarterly\u003c\/strong\u003e, as mandated, to catch trends early.\u003c\/li\u003e\n\u003cli\u003eAlways check the debt level when analyzing ROE; high debt defintely masks poor operational performance.\u003c\/li\u003e\n\u003cli\u003eEnsure Net Income used excludes one-time gains or losses.\u003c\/li\u003e\n\u003cli\u003eCompare ROE against the cost of equity to ensure true value creation.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003eKPI 7\n: \u003cspan style=\"color: #126CFF;\"\u003eCost of Goods Sold (COGS) Unit Cost\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDefinition\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eCost of Goods Sold (COGS) Unit Cost tracks the direct expenses tied to producing a single aluminum profile. This metric shows how stable your production costs are over time, which is critical for maintaining your Gross Margin Percentage. You calculate it by summing all direct material and direct labor expenses required for that one unit.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eAdvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003ePinpoints exact cost fluctuations week-to-week.\u003c\/li\u003e\n\u003cli\u003eEnsures pricing models reflect current input costs.\u003c\/li\u003e\n\u003cli\u003eHelps isolate material or labor inefficiencies quickly.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-minus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eDisadvantages\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIgnores fixed overhead costs like facility rent.\u003c\/li\u003e\n\u003cli\u003eAccuracy depends entirely on precise labor time tracking.\u003c\/li\u003e\n\u003cli\u003eA stable unit cost doesn't guarantee profitability if volume is low.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eIndustry Benchmarks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor custom B2B manufacturing, unit cost stability is often more important than the absolute dollar amount. Benchmarks aren't fixed dollar figures; instead, leading firms aim for less than a \u003cstrong\u003e2% variance\u003c\/strong\u003e in unit cost month-over-month. If your unit cost jumps 10% suddenly, you need to know why before quoting the next batch of profiles. This defintely signals a process breakdown.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-rocket-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Improve\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eNegotiate volume discounts on primary aluminum billet material.\u003c\/li\u003e\n\u003cli\u003eImprove Overall Equipment Effectiveness (OEE) to cut setup time per run.\u003c\/li\u003e\n\u003cli\u003eCross-train labor teams to minimize premium paid for overtime hours.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eHow To Calculate\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou calculate this by adding up the direct costs associated with making one unit. This means material used, direct wages paid to the operators running the press, and any direct tooling amortization specific to that run.\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nCOGS Unit Cost = Direct Material Cost per Unit + Direct Labor Cost per Unit\n\u003c\/div\u003e\n\u003cbr\u003e\n\u003cbr\u003e\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-how-calc-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eExample of Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTake the example of your specialized Battery Rails component. If the raw material cost for one set of rails is $5,500, and the direct labor time allocated to extruding and finishing that set costs $1,600, the total unit cost is calculated as follows:\u003c\/p\u003e\n\u003cdiv class=\"card_smpl_formula\"\u003e\nCOGS Unit Cost (Battery Rails) = $5,500 (Material) + $1,600 (Labor) = $7,100\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$7,100\u003c\/strong\u003e figure is what you must track weekly to ensure your input costs don't erode your target \u003cstrong\u003e55%\u003c\/strong\u003e Gross Margin Percentage.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\u003ch3\u003eTips and Trics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eReview this figure every Friday, no exceptions.\u003c\/li\u003e\n\u003cli\u003eTie cost spikes directly to Scrap Rate Percentage changes.\u003c\/li\u003e\n\u003cli\u003eEnsure labor hours match the complexity of the profile.\u003c\/li\u003e\n\u003cli\u003eUse this number to validate your Gross Margin Percentage targets.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49303768891635,"sku":"aluminum-extrusion-kpi-metrics","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/aluminum-extrusion-kpi-metrics.webp?v=1782675235","url":"https:\/\/financialmodelslab.com\/products\/aluminum-extrusion-kpi-metrics","provider":"Financial Models Lab","version":"1.0","type":"link"}