Whether you’re a small shop or a major manufacturing company, every process benefits from a close analytical study of efficiency. But what about the methodology for examining and improving efficiency in your process? KPIs, or Key Performance Indicators, are an established and successful way of evaluating a shop or factory’s performance. There are three key elements to an effective KPI journey.
This can be summed up with a classic maxim: “begin with the end in mind.” This simple concept can help narrow the scope of new KPI projects. Not only should all KPIs focus on a clearly defined goal, but managers should avoid trading quantity for quality. Measuring everything is just a busier way of measuring nothing. For each proposed KPI, ask yourself critically: “Is this truly supporting my end goal?” Starting out with a distinct strategy helps ensure KPIs provide meaningful insight that leads to action.
As you’re brainstorming effective KPIs and preparing to implement measurement and improvement throughout your process, ask yourself: are your KPIs quantifiable and actionable?
To ensure quantifiable KPIs, you’ll need a robust method of measurement. That system can be based on methodologies like Overall Equipment Effectiveness (OEE) or production data collection, but it must be measurable.
Once quantified, any KPI strategy should include actionable steps beyond interpreting the data. Team members and project leaders should be equipped with the authority and the tools to make the necessary changes.
So you’ve carefully chosen and defined your KPIs. Unless you’re a very small business, chances are that your company’s structure involves several levels of operation. Without open and clear channels of communication between those levels, KPI goals can be lost in translation. Not only should leaders translate KPI strategy to each level of operation in relatable terms, but it’s also important to emphasize (and recognize!) employee engagement on any level.
Strategic KPIs break down transformations into day-to-day action. Clearly defined goals, targeted production data collection, and communication all contribute to the most effective KPI changes.
The team at PanelShop.com understands your needs and can work closely with you to achieve your project goals. Whether you know exactly what you need or you're seeking a partner to help develop and accelerate your project, PanelShop.com can help: