Re-assessing productivity metrics: Foundations for fair and transparent KPI policies in manufacturing enterprises

This study critically examines the logical limitations of widely used productivity metrics, including efficiency, capacity, and volume. It proposes a corrective approach that restructures the efficiency index by reversing its numerator–denominator configuration to better align with the managerial principle of input minimization. By decomposing capacity into its constituent components (Capacity = Efficiency × Volume), the model provides a clearer distinction between individual productivity and managerial coordination capability. Furthermore, the study introduces a sustainability threshold of 15%, grounded in the theoretical frameworks of slack and optimal learning, to support sustained organizational growth over the long term