Measures how effectively raw materials are used in production, reducing waste.

What it Measures ?

How well we use the materials we planned.

Relevant StakeHolders 

Inventory Manager, Procurement Head

Why it Matters ?

Improves material usage efficiency.

In-depth Use Case / Real-world Example

Material Utilization Efficiency tracks the percentage of raw materials used effectively in the production process, with minimal waste. If a factory uses 80% of the material and wastes 20%, the material utilization efficiency is 80%. High material efficiency helps reduce costs, improve sustainability, and minimize waste. Companies can achieve higher material efficiency by optimizing production processes and reducing scrap or surplus inventory.