Methodology of Operationalization of KPIs for Shop-Floor

Abstract

Key performance indicators (KPIs) are a critical tool to support activities and results' monitoring in any industrial organization. The published literature and the available approaches on KPIs focus on the business and administrative level, being computed with information retrieved at the shop-floor level. Despite that, there is a scarcity of structured and comprehensive approaches to support the generation of KPIs to be used at the shop-floor level (the few existent approaches are empiric-based). In this chapter, a methodology to support the selection and organization of KPIs at the shop-floor level is proposed. Departing from the Hoshin Kanri strategy deployment, it identifies the levels of decision and control in the company regarding the production activities and derives the most adequate KPIs for each level based on universal questions about “what performance to assess.” The build-up of visual management boards for each level is also proposed.