@Dominic Mwata

From my experience I would look at Scrap, Non- Conformances vs good parts manufactured. On-Time -Delivery.

@Dominic Mwata

at my previous employer we focused on internal incidents and external incidents(RMAs) for our management reviews. Our weekly Quality reviews were focused on the quality hold area. We looked at how much is on hold vs how much was reworked vs how much is scrap vs how much is acceptable as-is.

@Dominic Mwata In our facility, the KPI's for quality are No holds/Recalls, No overdue audits or CAPA's, NC Aging, items like that.

• No. total DACs (open in the system)
  • No. closed DACs (in the system)
  • No. of open DACs (in the system)
  • Age of DACs still open in the system
• Number of NCs at reception
• Number of RMAs

@Dominic Mwata Hey Dominic, you should be pretty well covered with all of the great feedback from the folks that responded. Something I wanted to throw out there as well is that at many companies, the KPI's are flowed down by a higher source such as executive mgmt., corporate office, etc. The company you work for might not follow this flow but if they do, you would not want to pick out your own KPI's only to find out through the year that a completely different set of KPI's are being applied to your role and possibly to annual performance reviews, etc., without your knowledge.

Wish you much success,

Jesse

@Dominic Mwata
Hi Dominic, This is one of my favorite topics.
It all depends on what you intend to use the metrics for. Too many metrics are internally focused to confirm to their management that they're doing a good job…like #produced, #NC, A$vB$. Unfortunately, these are all lagging (after the fact) indicators and have no predictive value. The best metrics are predictive and externally focused, from the customer's perspective, like cycle/lead time (CT, a measure of the organizations agility and ability to respond to customer's changing needs), and Work in Process (WIP, an indication of how long the line is before you get to work on the next work order). In Theory of Constraints (TOC), the only measures you need are Throughput (TH, money coming in), Inventory (money stuck inside) and Expenses (money going out) - Ref. Goldratt, The Goal. These are all related in “Little's Law”. CT=WIP/TH.
Ideally, your metrics should be predictive and actionable and answer the important questions:
Are we getting better or worse? Do we need to change? Then…
What to change? What to change to? and How to implement that change?

I appreciate all your feedback, very insightful and has given me the clarity I needed.

Hello

Our ASQ Leadership has communicated its 2023 KPIs w

@Daniel Zrymiak

Overall, headquarters is budgeting total revenues of $23.1M and expenses of $27.01M, resulting in an overall operating deficit of $3.894M. Global operations combined are budgeting an operating deficit of $152k. Headquarters and global operations combined are budgeting a total operating deficit of $4.046M.

Planned capital spending is expecting to occur next year on information technology advancements and building expenditures which will total $1.488M.

Level one key performance indicator goals for 2023 were presented for review.

• Member retention goal is 63%,
• membership total goal is 40,000,
• operating revenue goal is $17.014M,
• operating deficit goal is $3.113M,
• employee retention goal is 70%,
• education and training margin goal is 67%,
• education satisfaction goal is 73%,
• member satisfaction goal is 80%

@Dominic Mwata

I struggled with this same question recently. My company asked me to create a “KPI sheet”. Odd request, but OK. I asked, "What would you like to focus on?" They replied with, “We heard our competitors were doing this and thought you would know. What does KPI stand for?”

Long story, short. The main gripe with the company is not customer complaints, (I created a workbook with monthly itemized spreadsheet tracking that feeds the information with units shipped into a Pareto chart,… anywho) They aren't concerned with supplier issues, since they are comfortable with overstock of raw materials (😮). The main issue of concern for this company is downtime.

Warning: Sports analogy ahead! They know where to get the ball. They know where to throw the ball. They just don't want to hold onto the ball for longer than they need to. How efficiently can they handle the ball is their main concern

After interviewing the production team for what they fear the most, besides deadlines. I was able to identify the key components which slow production down. Created a daily downtime sheet which they could fill out which details the issue, the response time, and the troubleshooting time to bring the machine back up. This information will be placed into another workbook which will be fed into (you guessed it!) a Pareto chart.

I find Pareto charts (and spreadsheets) so helpful in identifying issues based on their importance, namely how often they occur.

Are there other tools (aside from CAPAs and NCs) anyone else is using?

@Shawn Varela
Hi Shawn. Great tool for investigating the problem and developing a solution, but it's not a good KPI unless downtime is causing you to miss shipments to customers or creating back orders (a good customer focused KPI). Chasing "Production efficiency” (or absorption) is a common management error. I suggest reading (or listening to) The Goal by E. Goldratt. It will open your eyes on what to measure.