The KPIs are the Key Performance Indicators (Key Performance Indicators). Each company measures its performance in some way and to some degree. Frequently these measures are based on historical information. While these indicators are true for past data, we should seek to improve them in the future, more and more.
It is also critical that each company aligns the indicators according to their global strategies and that they are implemented to cause positive impacts.
KPIs can be used to show how much waste is being had, to show productivity, and to show efficiency.
They are also excellent motivators. The theory of motivation shows that people tend to be more satisfied with motivation issues when they reach challenging but achievable goals.
Use the KPIs according to the needs of each one. Remember that operators require KPIs different from those of supervisors and managers. Choose the most suitable KPIs to show in real time, and teach the right people to take them into account.
CONSIDERATIONS WHEN ESTABLISHING KPI’S
All KPIs must meet 3 conditions: be able to measure themselves, set goals for improvement and take actions on time.
KPIs have to be feasible, adequate and obtained on time.
- Without KPI’s: Imagine a plane flying without the control panel that indicates altitude, speed, altitude, etc.
- With KPI’s that are not feasible: Imagine a small jet, whose goal is to reach the other side of the world. I simply could not because of the limitations of gasoline and performance.
- With KPIs that are not suitable: Imagine a plane that in the instrument panel, shows the temperature, speed, altitude and gasoline of another helicopter. Are they useful?
- With KPIs that are not obtained in time: Imagine a plane that marks the correct altitude, gasoline, speed, altitude … but with 1 hour delay.