Lean

KPIKey Performance Indicator

A measurable value that shows how effectively an operation is achieving its key objectives.

A Key Performance Indicator (KPI) is a quantified metric that tracks progress toward a critical objective. Effective manufacturing KPIs are few, balanced across safety/quality/delivery/cost/people, and visible at the point of work.

Common shop-floor KPIs include OEE, schedule adherence, first pass yield, TRIR, and cost per unit. KPIs cascade from strategy via hoshin kanri and are reviewed in tier meetings.

Go Deeper
Manufacturing KPIs guide→Daily Management guide→
Related Terms
OEE
The gold-standard equipment metric: Availability × Performance × Quality. World-class is 85%+.
Schedule Adherence
The percentage of the planned production that was actually completed on time and in the right sequence.
Hoshin Kanri
A strategic planning process that aligns goals and actions from the executive level down to the shop floor.
Tier Meetings
A layered system of short daily meetings that escalate problems up and cascade actions down the organization.
Visual Management
Making the status of work, performance, and standards instantly visible so anyone can understand the situation at a glance.

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