Process KPI Checklist

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Process KPI Development Algorithm:

• Identify process areas to be measured (continually monitored);
• Define what performance parameters are critical to the process;
• Determine appropriate metrics and performance objectives;
• Build management hierarchy for reporting and analysis;
• Define suitable frequency of measurement;
• Define required data and data collection method;
• Design information representation methods;
• Deploy controls for measuring function;
• Develop and apply system of process metrics;
• Develop work instructions and specifications;

Structure of the Process:

• Time cycles of operations – the time between start and end of certain operations;
• Workflow – adherence to adjusted order of steps which lead to production of specified results;
• Policies and Procedures – performance of regulations, instructions and other requirements;
• Systems – measures to determine effectiveness, efficiency, consistency, integrity and stability of systems involved into the process;
• Factors and risks – portfolio of external and internal factors affecting success of process (both positively and negatively), their probability, severity, etc;

Functioning of the Process:

• Technology – specific technological indicators, options and standards;
• Productivity of manufacturing line – performance of production plans and norms;
• Costs of production – costs incurred to organization by driving a process and creating its results (cost efficiency per unit produced, by overhead and direct expenses);
• Products – products sold vs. products produced, rates of spoilage, work-in-process, etc;
• Suppliers delivery – performance of those who supply a process with necessary resources;
• Quality standards – metrics and specifications to keep the quality on a properly high level;
• Delivery accuracy – overall effectiveness of the process (right product, right in time);
• Warehouse – effectiveness of how the process inputs and outputs are warehoused, such as stock turnover ratio, faults in supplies, etc;
• External – metrics related to customers and shareholders, such as customer satisfaction rate;

Administration of the Process:

• Report accuracy – correctness and speed of process data turnover;
• Ongoing process improvement – how successfully the innovations are implemented;
• Communication between different management levels – statistics on speed and effectiveness;
• Problem response time – how promptly the management reacts to administrative issues;
• Fault analysis and corrective actions – statistics ...

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