KPIs and What you Need to Track for your Fabrication Dashboard

Presented at the MCAA's 2023 Fabrication Conference

In today's fast-paced construction world, keeping track of your company's progress and performance is essential for growth and success. One effective way to achieve this is by utilizing Key Performance Indicators (KPIs) and Objectives and Key Results (OKRs). Trent Leinenbach, GTP's Director of Customer Success, discussed the importance of these metrics in the context of a fabrication dashboard during the MCAA's 2023 Fabrication Conference in Seattle, Washington.

Understanding OKRs (Objectives and Key Results)

OKRs, short for Objectives and Key Results, are a goal-setting framework that has its roots at Intel, credited to the influential thinker Andy Grove. This framework empowers organizations to define, track, and achieve their objectives and desired outcomes. The benefits are numerous, including fostering clarity, alignment, and focus for individuals and teams within an organization.

Objectives are the heart of OKRs, representing what needs to be achieved. They should be significant, concrete, action-oriented, and ideally, inspirational. When well-designed and deployed, objectives act as a vaccine against fuzzy thinking and execution.

Key Results, on the other hand, are the benchmarks and monitoring tools that measure how an organization progresses toward its objectives. Effective KRs are specific, time-bound, aggressive yet realistic, measurable, and verifiable. If all key results are met, achieving the objective becomes inevitable.

Applying OKRs to Different Levels

Using the example of a mechanical contractor, Trent illustrated the application of OKRs at different organizational levels:

Company Level OKRs

Objective 1: Enhance our reputation as the top mechanical contractor for piping fabrication in the region.

• KR1: Secure at least three testimonials or case studies from satisfied clients in the next quarter.
• KR2: Achieve a 95% or higher on-time delivery rate for all projects in the next 6 months.
• KR3: Win at least two industry awards or recognitions in piping fabrication by year-end.

Fab Shop OKRs:

Objective 1: Achieve a 10% reduction in production time for standard piping projects by year-end.

• KR1: Implement a lean manufacturing training program for 100% of shop floor staff by the end of Q2, leading to at least a 5% decrease in process inefficiencies.
• KR2: Upgrade or maintain machinery and tools, increasing linear feet of pipe cut per week by at least 10% by Q3.
• ?KR3: Optimize the supply chain and inventory management to ensure a 98% availability rate of necessary materials, decreasing waiting times by Q4.

The Role of KPIs (Key Performance Indicators)

In conjunction with OKRs, KPIs play a pivotal role in monitoring and evaluating a company's performance. KPIs are measurable values that demonstrate how effectively an organization is achieving its key business objectives. They can be applied at various levels, from assessing overall enterprise performance to evaluating specific departmental processes.

Here are five key characteristics of KPIs:

1. Measurable: KPIs can be quantified and easily tracked over time.
2. Aligned with Objectives: They are directly tied to organizational goals.
3. Actionable: KPIs provide insights that can drive positive change.
4. Relevant: KPIs are pertinent to the organization's goals and challenges.
5. Time-bound: They are tracked over a specific period.

For a fabrication team, KPIs could include metrics like the number of units produced per day or the percentage of product defects.

What to Measure and Track?

To effectively track progress towards objectives and key results, it's crucial to identify the right metrics and data sources. For example, for the KR2 in the Fab Shop OKRs, which aims to upgrade or maintain machinery and tools, consider using tools like the ITM Database of Parts in Revit, STRATUS , or Microsoft Power BI. (See following images for examples.)

Additionally, consider tracking the implementation of real-time project tracking and management systems, as mentioned in the KR2 for ensuring project timelines. Ideas for this could include utilizing project management software, automated alerts, and performance dashboards.

In conclusion, OKRs and KPIs are invaluable tools for organizations, providing a structured approach to goal setting, tracking, and performance evaluation. By clearly defining objectives, key results, and relevant KPIs, companies can enhance their decision-making processes, achieve their goals, and stay ahead in a competitive marketplace.

STRATUS: Fabrication Data at Your Fingertips

STRATUS is the Premier MEP construction, procurement, manufacturing and logistics software. STRATUS integrates with TigerStop to automatically update the status of pipes and spools in the model as they are cut. Even when you're disconnected from the model, QR codes enable you to update the status directly from your phone, whether at a spool or container level. This real-time progress tracking in the shop is invaluable when planning resources and measuring productivity.

Additionally, STRATUS not only helps improve shop labor scheduling; it’s taking QA/QC processes to a digitally documented state that can reside within STRATUS or be seamlessly synced to the Revit model. Incorporating STRATUS into your fabrication processes not only boosts efficiency but also brings transparency and control to your projects.

Click here to learn how KPIs + STRATUS can help your business!