How do you select the most relevant process performance indicators for your project?

Also understand that you don't need to achieve these PPIs (more commonly KPIs) at first pass. Process improvement especially driven by digital transformation, is an iterative or agile approach. Define your PPIs with some goal and timeframe for reaching them.

Acho fundamental entender de fato o problema. é importante identificar os problemas ou oportunidades que motivam o projeto de otimiza??o de processos. Isso pode incluir quest?es como baixa eficiência, alta taxa de erros, longos tempos de ciclo ou oportunidades de melhoria para aumentar a satisfa??o do cliente.

Using effective (aka KPIs) is vital for project success. The team needs BOTH Leading and Lagging PPIs. Leading KPIs are performance measurements that are updated daily or weekly and provide nearly immediate feedback regarding whether short term (tactical) actions are effective and will lead to achievement of long-term objectives. If short term actions are ineffective, the team has no Technical Right To Succeed. Lagging PPIs look backward at project performance and provide an Executive Summary of how well the team performed during a previous period. They can only be reviewed to provide a source of learning. Every Lagging PPI should be matched with AT LEAST one Leading PPI. Adding Leading PPIs will greatly improve project success.

Understanding your objectives is important but even before this, how you pull the process team together along with the sponsor is critical. If you are using agile considerations then the team you pull together needs to be very clear about their process and behavior norms. This is a co-creative process and not one formed by direction. This ensures future accountability in your execution and roll out. Once the team has identified what will make or break them, then move into identifying your PPI's.

Begin by clearly defining the objectives of your process optimization project. These objectives should align with the overall goals of your manufacturing operations. Are you aiming to reduce costs, improve quality, increase throughput, or enhance safety? Clear objectives provide direction and ensure that the selected PPIs are relevant and impactful.

Escolher categorias relevantes para os IBPs é essencial para garantir que os esfor?os de otimiza??o de processos sejam direcionados de forma estratégica, eficiente e orientada a resultados, impulsionando assim o sucesso organizacional a longo prazo.

PPIs can, and should, be utilized for every subject area and every stakeholder group associated with a project. A best practice is to begin PPI development at the client/customer position of the Product Value Chain and work backward to the origin of the manufacturing process. Maintain a mindset that "Unless an engaged, intelligent client/customer would be interested in the results of this PPI, we are not going to include it." Always remember that the letter "K" in "KPI" stands for "Key" Performance Indicator. There should be a finite, understandable, manageable number of PPIs. Adding too many dilutes everyone's ability to focus on the critical few things that really matter.

Choosing relevant categories is so important. PPIs provide focus by highlighting the most critical areas that require attention and improvement. By identifying key metrics and targets, team members can prioritize their efforts and allocate resources effectively. The goal is to use your PPIs to help the team prevent distractions and guide people towards activities that have the greatest impact on performance.

PPIs should be categorized to cover all critical aspects of the manufacturing process. Common categories include: -Quality Indicators: Measure product quality and defect rates. -Efficiency Indicators: Gauge the efficiency of production processes. -Cost Indicators: Track production costs and cost-saving opportunities. -Safety Indicators: Monitor safety incidents and compliance with safety standards. -Time Indicators: Measure cycle times, downtime, and overall production time. By ensuring that PPIs span these categories, you can get a comprehensive view of process performance.

PPIs and KPIs that are not measurable and trendable are of very limited value. Remember that the "I" stands for "Indicator" and very few indicators are unassociated with data (numbers). Leading and Lagging PPIs must be reviewed and acted upon as often as practical. Remember that Leading PPIs tell the team whether its tactical action plan is working. Lagging PPIs tell the team whether the Leading PPIs were managed effectively, and whether the Leading PPIs still correlate with overall project performance. If that correlation is lost, Leading PPI selection must be re-visited immediately.

Acredito que aplica??o desses critérios aos PPIs, as organiza??es podem garantir que seus esfor?os de otimiza??o de processos sejam direcionados de maneira eficaz e que os resultados sejam mensuráveis e significativos. Isso aumenta as chances de sucesso do projeto e ajuda a manter a equipe focada e motivada ao longo do tempo.

To ensure that your PPIs are effective, apply the SMART criteria: - Specific: Clearly define what is being measured. - Measurable: Ensure the PPI can be quantified. - Achievable: Set realistic targets. - Relevant: Align with your objectives and critical success factors. - Time-bound: Define a timeframe for achieving the targets. SMART criteria help in creating PPIs that are clear, actionable, and aligned with your project goals.

Para ilustrar, se o objetivo é melhorar a satisfa??o do cliente, um indicador principal, como feedback ou reclama??es do cliente, pode ajudar a identificar tendências e problemas emergentes antes que afetem negativamente a reputa??o da empresa. Enquanto isso, indicadores de defasagem, como reten??o ou fidelidade do cliente, fornecem uma vis?o retrospectiva do impacto das medidas tomadas para melhorar a satisfa??o do cliente ao longo do tempo.

To effectively gauge and drive project performance, it’s crucial to balance leading and lagging indicators. Leading indicators, such as employee training hours or equipment maintenance schedules, predict future performance and help preempt issues. Lagging indicators, like incident rates or completed tasks, provide data on past outcomes. Using both allows project managers to understand both the inputs driving the project and the outputs resulting from these actions, enabling proactive management and retrospective assessment.

The biggest problem in industry today is leaders who do not know about Leading PPIs or they don't engage sufficiently to insist that their project teams define and use Leading PPIs. All one has to do is read quarterly and annual reports from companies. They are filled with Lagging PPIs. The same story goes for executives' speeches and company-wide addresses. Focusing only on Lagging PPIs is analogous to driving a car while watching the rear view mirror. The driver can see what she/he missed hitting, but has no better indication of how to traverse the path ahead.

It’s crucial to have a mix of leading and lagging indicators: - Leading Indicators: Predict future performance and help in proactive management. Examples include machine maintenance schedules and employee training completion rates. - Lagging Indicators: Reflect past performance and outcomes. Examples include production yield, defect rates, and cost per unit. A balanced mix ensures that you can both foresee potential issues and assess past performance.

While it’s important to cover all relevant aspects of the manufacturing process, it’s equally important not to overwhelm your team with too many indicators. Focus on a manageable number of PPIs that are most critical to achieving your objectives. Typically, this would mean selecting around 5-10 key PPIs. This keeps the focus sharp and the data manageable.

Remember that the "K" in KPI stands for "Key." If too many PPIs or KPIs are added, performance management becomes a "number salad" that nobody can understand or use. This defeats the purpose of the tool. PPIs should be evaluated continuously and modified or eliminated if they are not driving the proper behaviors and decision making. Also remember that if an intelligent, engaged customer/client does not understand or care about a PPI, that PPI should become a candidate for elimination or modification.

Selecting too many process performance indicators (PPIs) can dilute focus and complicate management. To enhance clarity and effectiveness in tracking, limit your PPIs to those that directly impact key outcomes. Choose indicators that provide clear insights into performance and can guide actionable steps. This approach not only simplifies data analysis but also ensures that every indicator is meaningful and contributes directly to the project’s strategic goals, optimizing resource allocation and decision-making.

Continuously monitor PPIs to ensure they align with your project's evolving goals and challenges. Regularly assess each indicator's relevance by analyzing performance data and soliciting feedback from stakeholders. This includes reviewing how well the PPIs reflect current project priorities and operational changes. Adjust indicators as needed to address new objectives, emerging issues, or shifts in project scope. This iterative process ensures your performance measurement system remains accurate and effective, providing actionable insights that drive continuous improvement and help meet dynamic project requirements.

While KPI are mainly setting the direction on high level, Process Performance Indicators are crucial to monitor KPI's and, at the end, how to achieve those (KPI's). I love the idea to keep them (PPI's) as little as possible in term of number and as operational/concrete/tangible as possible (this is why we call PPI's).

PPIs are important because they enable measurement, alignment, focus, improvement, accountability, transparency, and informed decision making. By implementing and monitoring PPIs effectively, individuals and organizations can drive success, achieve goals, and continuously strive for excellence. When developed in a co-creative process, engagement and accountability are sparked leading to improve collaboration for ultimate outcomes.

Selecting relevant project performance indicators involves a strategic approach aligning with project objectives. I prioritize pre-implementation metrics focusing on timely, on-budget, and quality delivery. Tracking individual and team performance, adherence to timelines, and budget constraints is crucial. Post-implementation metrics assess outcomes, evaluating the effectiveness of solutions, user satisfaction, and overall project success against initial goals. This holistic approach ensures not only a successful project launch but also sustained performance over time.

Selecting the most relevant process performance indicators (KPIs) for a project demands a strategic approach. I start by aligning KPIs with project objectives, ensuring they directly measure key outcomes. Collaboration with stakeholders helps identify critical success factors, refining KPI selection. Prioritizing simplicity, I avoid information overload and focus on actionable metrics. Regularly reviewing and adapting KPIs maintains their relevance throughout the project lifecycle. Continuous communication with the team ensures everyone understands the significance of each indicator and its contribution to overall success.