The goal is to have everything relevant easily visible on the shop floor. Ideally, this is through the design of the shop floor as part of visual management. But a lot of other information is hard to see directly and can be shown best through data. Every well-managed shop floor has their different dashboards and other data sheets with information. This blog post focuses on why you should have your operators write down this data by hand. Lets have a look…
KPI
Key Performance Indicator – or KPI – are measurements regarding different shop floor performances.
On the Quality of KPIs
In this second post on KPIs, I will look at the quality of key performance indicators (KPIs). These are essential tools for measuring an organization’s progress toward its strategic goals. The quality of these indicators is critical as it impacts management’s decision-making and subsequent actions. Let’s have a look!
What are Good KPIs?
To control any kind of system, you need to know its status. For a simple system like heating, the indoor temperature may be the key input. For something as complex as manufacturing, however, there could be a myriad of different measurements that can help you to control the system. In this context, KPIs (key performance indicators) become crucial, offering a structured way to monitor various aspects of operation, from safety and quality to productivity and cost. Ensuring the right balance and focus among these KPIs can lead to more informed decision-making and enhanced operational efficiency. In this post I would like to dig deeper on what KPIs are good, and how you can go wrong with (too many?) KPIs.
Lessons Learned from the Toyota KPI Dashboard for Your Own Dashboard
In my series of posts on the Toyota KPI dashboard I went into detail about the different sections and KPIs. These dashboards work well fro Toyota. However, this does not mean that they automatically work well for you too. Chances are, you are not making cars. Even if you are, your relevant KPI information may be different from Toyota’s. Let’s have a look…
The Toyota KPI Dashboard—Production Plan
In my previous posts I went into great detail through all the categories of the Toyota KPI dashboard: safety, quality, productivity, and cost. I also explained the additional section on HR development, albeit this may not really be KPI in the normal sense. However, the dashboard often contains even more: a section with the monthly production plan, a section for the allocation of the operator, and different A3s for improvement. Lets dig deeper:
The Toyota KPI Dashboard—Human Resources
With the KPI groups safety, quality, productivity, and cost, this series on the Toyota KPI dashboard has covered the main topics. However, there is more. Not always but often you can also find a section on human resources (HR) development. Yet, these are usually not KPI, but more organizational topics that may be part of the daily shop floor meeting. Below are some examples of how this section could look, although this may vary quite a bit among different Toyota plants. Let’s have a look:
The Toyota KPI Dashboard—Cost
In my series on the Toyota KPI dashboard, after safety, quality, and productivity, we finally arrive at cost. While for some companies it is the number one factor, for Toyota it is far behind safety, quality, and productivity. The argument is that if safety, quality, and productivity are in line, it is likely that cost is also good. Both a lack of quality and a lack of productivity will drive up the cost.
The Toyota KPI Dashboard—Productivity
This post in my series on the Toyota KPI dashboard looks at productivity. After safety and quality, this is the third-most-important KPI group on the Toyota dashboard. The cost is least important. This section of the dashboard measures different KPIs on the productive output of the system. Let’s have a look.