Measuring performance is the key for driving dramatic improvements in any organization. Choosing the right performance measures, or metrics, is essential to hone the focus of improvement project teams.
The key to honing the focus for the project team is to select measurements that are relevant to the level of the organization that is being impacted by the improvement project. If the team is working on improvements at the work cell, or production line level within the organization having measurements that resonate with the Corporate Level of the organization won’t make much sense. The measures must be selected that are appropriate for the level of the organization where the improvements are being made.
Examples of performance measures and the level within the organization follow:
Business Unit Level
Work Cell / Production Line
A rating scale can be used to help with selecting the Key Performance Metric, or the CTQ (Critical to Quality) Metric, that will drive the improvement at the given level within the organization. The rating scale follows:
Availability of Data
Overall Average Score
The metric with the highest overall score should be used to drive, monitor, and maintain the gains form the improvement efforts. Choosing the right performance measures is the key for driving dramatic improvements in any organization.