Before looking at KPIs, it is necessary to define what is meant by them. It is only possible to work with them once their true meaning has been understood.
A Key Performance Indicator (KPI) is a quantitative metric used to measure how well a given activity succeeds or performs. KPIs can be used to measure the performance of an organization, a team or an individual, and are often used to measure progress towards a specific goal.
One of the most common mistakes is to set a KPI not on the basis of a real value, but on the basis of a constraint. This can be a disaster because, even if unintentionally, the more energy that is expended on the goal, the more the importance of the constraint increases.
In fact, to troubleshoot any problem with KPIs, it is important to first identify the core problem. This can be done through data collection, trend analysis and understanding of the context of the problem. Once the problem has been identified, it is important to establish the key objectives and set targets for the KPI in order to address the problem. Tracking progress and measuring results to determine if the KPI is working effectively would be the next step. Finally, any necessary changes should be implemented to ensure that the KPI is meeting the desired objectives.
In the next few days, I'll be giving you a list of KPIs with their definition, the value required and, in some cases, what might need to be noted.
The first KPI we are going to talk about is the one with which we are most closely associated.
The mythical OEE
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