What is KPI?
Key Performance Indicator
A few numbers you set to see if things are going well.
What it means
The records cannot be read in their entirety. So, I decide what “running well” means in terms of a few numbers and look at it. These are KPIs.
In factories, we often look at whether promises are kept (delivery compliance rate), whether things are made well (yield, defect rate), and whether facilities are running (availability).
At the pen factory
The KPIs of the ballpoint pen factory selected on the 26th day were 87.5% delivery compliance rate, 96.5% yield, and 94% availability.
Why it matters
We need numbers to tell whether we're better than last month.