A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs measure the success of an organization or a particular activity in which it engages. Klipfolio.com points out that “high-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center.”
Perhaps you use them or perhaps they are new to you. But what should you know about effective KPIs and KPI dashboards? And what should SPC software offer with respect to this?
For those who use KPIs, they realize that the benefits build the foundation for competitive success over the competition. Zontec’s very own Synergy 1000 provides a Key Performance Indicator (KPI) Dashboard to assess, track and analyze factors contributing to production efficiency across all industries. The ultimate goal related to SPC being that you are gaining insight into the capability and stability of your processes. There are some basic guidelines for effective KPIs.
Be sure to get your copy of our latest Application Tips about the Synergy 1000 Cloud KPI Dashboard. Download Here!
The Seven Characteristics of Effective KPIs
Following extensive analysis and discussions with over 3,000 participants in KPI workshops, covering most organization types in both public and private sectors, facilitator David Parmenter defined seven characteristics of effective KPIs:
|Non-Financial||They are non-financial measures (not expressed in dollars, yen, pounds, Euro, etc.)|
|Timely||They are measured frequently (e.g., 24/7, daily or weekly)|
|CEO focus||They are acted upon by the CEO and senior management team|
|Simple||All staff understand the measure and what corrective action is required|
|Team-based||Responsibility can be assigned to a team or a cluster of teams who work closely together|
|Significant impact||They affect more than one of the organization’s top Critical Success Factors and more than one balanced scorecard perspective|
|Limited dark side||They encourage appropriate action – i.e., they have been tested to ensure they have a positive impact on performance (whereas poorly thought through measures can lead to dysfunctional behavior)|
Source: Parmenter, D. (2010). Key performance indicators: Developing, implementing, and using winning KPIs, second edition (2nd ed.). Hoboken: John Wiley & Sons.
“28 Manufacturing Metrics that Actually Matter (The Ones We Rely On)” by Mark Davidson – Application Tips about the Synergy 1000 Cloud KPI Dashboard. Download Here!
Synergy 1000 Cloud KPI Dashboard
No other SPC software has a dashboard that is this informative and this attractive. A KPI dashboard can be quickly and easily generated to compare efficiencies between machines, for example.
Zontec’s Synergy Suite of SPC software is the ONLY fully compliant SPC. Schedule a Demo here.