Proposed Kpis

qualprod

Trusted Information Resource
#1
Hello everybody

I would like you to give me your comments regarding to the next kpis established
in the next processes.
They were implemented by a person who left the company, and I want to start to evaluate them, but first
wanted to have your valuable help.
Hope receive Input to say if they are useful for the processes, or should be changed/eliminated or others have to be added

Top Management:

- % Tasks compliment =90% (management review outputs in each MR)
- # Quantity of improvement projects= 2 quarterly
- Productivity = >5 revenue/ cost of structure, monthly
- % compliment of kpis in processes = >90%, monthly
- % customer satisfaction = >80 % yearly

Procurement:
-# Hours needed to place orders = 4 hours average, monthly
-% On time delivery of suppliers = > 90% monthly
-% Faulty deliveries of supplier = 10% maximum, monthly
Sales:
- Time spent to prepare RFQ = 4 hours average max., monthly
- OTD to customers according to contract = 90%, monthly
Hr:
- % Employee turnover = 5% maximum, quarterly
- %Training provided against training requested (ratio) = 90% quarterly
- % Employee satisfaction (survey)= 70% yearly
Production:
- % Rejected product= 5% max. monthly
- # of Nonconformities = 4 max. monthly
- % compliment finished work orders= >90%
Quality process:
- # of raised NCR = 10 maximum, monthly
- # of errors due to poor inspections = 5 max. monthly
IT
-% compliment to schedule = > 90% monthly
-% effectiveness maintenance = > 90% monthly
Environment
- # personal accident = 0, monthly
- % compliment people wearing safety equipment = 95%, monthly


Thanks for your support.
 
Elsmar Forum Sponsor

Tagin

Trusted Information Resource
#2
It's difficult to say, without know the details of the organization, which ones are useful or not. In general, I look at KPIs as:
1) Is this KPI actionable? E.g., if I fall below a threshold, is some useful action going to be taken or not?
2) Is this KPI really pointing toward improvement? E.g., is "Time spent to prepare RFQ = 4 hours average max., monthly" attempting to improve time efficiency at the expense of lower quality RFQs? If I spent 8 hours/mo, would I get a higher conversion of quotes to orders?

For IT specifically, you might want to look at:
1) # IT incidents/mo (malware infections, ransomware, adware, etc.)
2) Offsite/air-gapped backups occurring periodically = 100%
 

Candi1024

Quite Involved in Discussions
#3
-# Hours needed to place orders = 4 hours average, monthly

I'm not so sure about this one. If you get an influx of orders, which is a good thing, this KPI would go down even if your processes are effective. If you think the efficiency of placing orders is worthy of a KPI, I would at least do #OfOrders/ hour
 

malasuerte

Involved In Discussions
#4
First off, you need to come up with a WHY you have selected those KPI - if you can't write a short blurb, then they are probably not the right ones.

Second, you should be using data, either internal or industry to help you determine the KPI goals. For example, 95% of the people wearing their safety equipment?? That seems dodgy to me, when it comes to safety, it should be 100% every time. Never compromise safety.
 
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