What is KPI?
KPI stands for “Key Performance Indicator.” This strategy is used in the production units, Finance, sales and services, and IT companies. KPIs show a company’s performance and internal departments. KPI is a powerful tool for Lean Manufacturing and Lean Production.
We are discussing the industry and production units for Lean Production and Lean Manufacturing.
A display in a graphical or progress bar format. It shows you the production status on the spot and is called KPI (Key Performance Indicator). This indicates not only production progress, it indicates the following status:
- Total Target
- Target Achieved
- Quality Issues
- Downtime
- Waste
- Comparison between total target and target achieved
KPI also compares the performance between two relevant times. Like hour to hour, shift to shift, day to day, week to week, month to month, and year to year.
Production progress and performance methodology are mostly used in manufacturing plants.
It is also used in departments where it needs to counter the progress and performance continuously.
KPI Dashboard Template
Some companies use software to display the progress on a screen or display board. You can also use it in print form and manual draft lines on it as performance and other factors. You can title it “KPI DASHBOARD“.
Here are two templates for the KPI dashboard that include important factors that directly affect performance.
factors that directly affect KPIs like waste, quality, and downtime.
You can design the KPI dashboard according to your requirements. Like the nature of production, needs, and subjects. The best KPI is to fulfill the requirements with necessary factors and result accuracy. Some faults in the production system also affect the KPI performance. If needed to solve these faults and issues then conduct PDCA methodology.
Progress and performance require continuous improvement in the system and also depend on Department Target Tasking.