Copyright © 2011 Inderscience Enterprises Ltd. Operational efficiency of systems is generally measured by key performance indicators (KPIs). A complete set of KPIs for material handling systems are not readily available. The lack of KPIs makes it harder to assess efficiency and track progress in systems. We develop a list of KPIs to measure the efficiency of a material handling system and specifically discuss the case of a conveyor system. Also, considering a single KPI and ignoring others will lead to a myopic approach to improvement. To combat such a shortfall, we propose a simple weighted approach to obtain a wholesome assessment of a system with KPIs.