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Further Analysis of Departmental KPI (Key Performance Indicator)

K

kschubert417

#1
Hi Team,

A friend of mine referred me to these forums because I seem to have hit a small snag in my Black Belt Project.

Before I break it down, the samples I am using are broken down into quarterly chunks, i.e. monthly shipment data for January-March would be sample 1, April-June sample 2 etc.

Here's the story:
I am working on a project that involves tracking around 13 different KPI from 5 different departments in my organization. After defining my project I went on to plot these KPI on a Xbar-Range chart, where I found the some of the KPI was in control and some weren't, fair enough. I need to try to find a way to get the process for the KPI in control that is not stable.
Moving forward with the KPI that is stable, I am kind of drawing a blank here. I was thinking of setting up a Capability Analysis, but there are no bounds set by the customer because these KPI are driven by the organization's processes as well as customer orders that are received in a month. Using the shipping department as an example, if orders come in they could ship 5,000 orders a month but if there are no orders then they can't ship anything; same for the manufacturing team who needs to build the product for shipping to ship out.

I guess my ask is, what should I do to start the "analyze" phase of this project? A capability analysis does not seem right.

Any and all help would be appreciated :bigwave:
 
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Big Jim

Super Moderator
#2
It may help if you share the KPI.

I would likely start with a trend analysis. Can you see how they have been trending over the last few months? When you see a variance, can you identify a likely cause?
 

Statistical Steven

Statistician
Staff member
Super Moderator
#3
In my experience most KPIs are not normally distributed so control charting might be giving false signals. You can instead choose to redefine the KPI, though not desirable. I might recommend that the analysis phase might be premature as a better measurement should be defined that can be analyzed for improvement.



Hi Team,

A friend of mine referred me to these forums because I seem to have hit a small snag in my Black Belt Project.

Before I break it down, the samples I am using are broken down into quarterly chunks, i.e. monthly shipment data for January-March would be sample 1, April-June sample 2 etc.

Here's the story:
I am working on a project that involves tracking around 13 different KPI from 5 different departments in my organization. After defining my project I went on to plot these KPI on a Xbar-Range chart, where I found the some of the KPI was in control and some weren't, fair enough. I need to try to find a way to get the process for the KPI in control that is not stable.
Moving forward with the KPI that is stable, I am kind of drawing a blank here. I was thinking of setting up a Capability Analysis, but there are no bounds set by the customer because these KPI are driven by the organization's processes as well as customer orders that are received in a month. Using the shipping department as an example, if orders come in they could ship 5,000 orders a month but if there are no orders then they can't ship anything; same for the manufacturing team who needs to build the product for shipping to ship out.

I guess my ask is, what should I do to start the "analyze" phase of this project? A capability analysis does not seem right.

Any and all help would be appreciated :bigwave:
 
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