Definition
The key few indicators needed to control the measurement of operational health are usually safety, quality, delivery and cost in production.
In detail
Key Performance Indicators (KPIs) are the critical few metrics that measure business health, typically including safety, quality, delivery, and cost in production. They address the question of "how to quickly determine whether the business is normal" and are closely integrated with daily management. Unlike improvement metrics, KPIs reflect daily operational status rather than breakthrough improvements. Outputs include KPI boards or scorecards for monitoring and decision-making.
Example in practice
A certain workshop set up a KPI board displaying safety, quality, delivery, and cost data. During daily stand-up meetings, the team checked whether KPIs met targets, and anomalies were escalated immediately. Through KPI monitoring, a delivery delay trend was identified, and production plans were adjusted promptly. KPIs helped the team maintain stable daily operations.