THE ONLY CHOICE OF A PERFORMANCE
INDICATOR AFFECTS PERFORMANCE
1. LEARN BY YOURSELF & CHALLENGE YOUR WAY OF DOING
Choosing the right indicators is vital. Indicators must reflect the operating performance of the team. Indicators should be chosen with users. Even if the supervisor has a clear idea of the indicators it wants to follow, they should be discussed and validated by the team so that everyone recognizes them as a valid measure of performance and is working to improve.
Chose KPI close from team activity. Team-members must know the values, can explain it, and react when out of target.
There are targets for each of them. The targets are adjusted to the "situation of the day / hour". They are always a bit challenging.
Data are coherent with reality.
The KPI reflect the operating performances of the team.
The chosen KPI reflect the priorities of actions, and serve the dept / factory / company project / customer needs. (KPI tree)
The categories of indicators are Quality, Cost, Delivery and Personal (Q, C, D, P). The four categories must be met in the best of cases, but this is not mandatory. A smaller number of indicators is acceptable if it allows to define best actions. All indicators should be the concern of the team, and in any case not only from the supervisor. Team members must necessarily be able to act on these indicators. The monitoring indicators is performed periodically.
The choice of the unit of measurement is essential. Subconsciously all that is above 10 is considered great and everything is less than 1 is perceived as small. For example, 0.1% is considered small, while 1000 PPM is considered large, then it is the same size. It may therefore be useful to change according to the progress of a service about unit of measurement in order to still show the malfunction, always show a reading above 10, which prompts action.
Beware though, the measure can lead to a dehumanization of relationships within the company. Take into account The syndrome of "excessive measurement". Implement few KPI but with big lever effect.
2. COPY & IMPROVE ASSOCIATED BEST PRACTICES
Practice from: CMW
Contact: Peter GENG
What: KPI tree management in Factory
Gains: People alignement on performances
Assessment level: OPEX,axis 2
3. GO FURTHER WITH OUR COACHING OFFER
Please contact: AML / DFM factory
4. VALIDATE YOUR SKILLS
Competency = To promote data thinking [CIPT]
5. EVALUATE YOUR ORGANIZATION
Assessment = OPEX
Chapter = O3