Defect Rate
Construction – number of defects or snags identified per unit of work completed
What is Defect Rate?
Defect rate in construction and engineering is the number of defects found per unit of work completed. It shows the quality of workmanship.
Defects cause rework, delay and cost, and can damage reputation, so reducing them improves profit and client satisfaction.
How this KPI is measured
- Function
- Operations & Supply Chain
- Sub-function
- Quality
- Industry
- Construction & Engineering
- Type
- Lagging
- Impact
- Quality
- Unit
- #
- Measurement frequency
- Per milestone
- Formula
- Total defects identified / Units of work completed
How to calculate it
Divide total defects identified by units of work completed.
For example, if 60 defects were found across 200 completed units, the defect rate is 0.3 per unit.
Define units of work, such as housing units or inspections, and categorise defects by severity and cause.
Where it is used
Improving quality
Track workmanship.
Managing subcontractors
Compare performance.
Reducing rework
Find causes.
How to improve it
Tips and common mistakes
- Defects found early are far cheaper to fix.
- Weight by severity.
- Encourage open reporting.
More Operations & Supply Chain kpi library
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