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!
KPI
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—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.
The Toyota KPI Dashboard—Safety
In my last post I showed you an overview of the Toyota KPI dashboard. This time I will look in more detail at the first (and arguably most important) section on safety. And, while I’m at it, let me also tell you some more about safety at Toyota.
The Toyota KPI Dashboard—Overview
Dashboards, in their many forms, are essential to track the performance of a production system. In this post I will talk more about the Toyota shop floor dashboard. A lot of the information is from Toyota in Japan, but the images are from Toyota UK. Keep in mind that the dashboards are not a rigid standard and there may be differences in how they are implemented in the different plants. For one thing, in Japan they are in Japanese, and in the UK in English, but there are also differences within the KPI itself. Let me tell you more in this short series on the Toyota KPI dashboards…