Automatically collecting data using tools like Mapex’s MES is a great first step on the journey toward continuous improvement. In this article, we’ll provide you with key insights to maximize the value of this information and help you achieve your production and business goals through the effective use of KPIs.
In the era of big data and information overload, it can be challenging to pinpoint which data is truly relevant for improving decision-making in your business.
To avoid this, you need to identify the metrics that will help you foster a culture of continuous improvement in your production plants and meet your business objectives.
Below, we share several tips to help you not only measure your progress but also sustain and enhance it over time.
1. Focus only on the data that matters
Automating data collection and gaining access to large volumes of information requires you to set clear objectives and select high-quality, useful KPIs.
- Start with objectives, not data: first define your strategic goals, then determine what data you need to measure progress toward those goals.
- Prioritize quality over quantity: limit your KPIs to a handful of high-impact metrics that are directly aligned with your production or business objectives. Fewer metrics mean greater focus and clarity.
2. Align KPIs with your business strategy
Measuring for the sake of measuring is pointless. If KPIs are not aligned with your business objectives, you risk losing focus and wasting resources on irrelevant activities.
- Tie each KPI to a goal: every metric should be clearly linked to a strategic purpose. For example, if your goal is to increase the operational efficiency of your production plant, focus on KPIs like OEE or unplanned downtime.
- Communicate the purpose: ensure everyone in your organization understands how KPIs contribute positively to the business. This fosters accountability and a unified focus.
3. Motivate your team to think long-term
Linking KPIs to incentives can be effective, but placing too much emphasis on short-term individual rewards may create challenges.
- Incorporate qualitative metrics: combine numerical data with qualitative feedback to evaluate overall impact and boost team motivation. For instance, while the defect rate is a critical quantitative metric, customer opinions about specific product features like durability, design, or functionality provide valuable qualitative insights for improvement.
- Promote a long-term vision: design incentives that reward sustainable success, such as customer retention or product quality improvement.
4. Regularly review and update your KPIs
KPIs should never be static. Market conditions change, business strategies evolve, and your metrics must always remain relevant.
- Schedule periodic reviews: plan regular evaluations (quarterly or annually) to assess whether your KPIs remain useful and aligned with your objectives.
- Listen to your employees: workers who directly handle the data can provide valuable feedback on which metrics work and which do not.
- Replace outdated metrics: don’t hesitate to discard KPIs that no longer add value, replacing them with more relevant ones. As you gather more data, update your goals to ensure they remain challenging yet achievable.
When selecting KPIs to monitor, prioritize simplicity, relevance, and actionability. By reducing noise and focusing on key data points, you’ll be able to make informed decisions and steer your company toward continuous improvement.
- For more information on production KPIs, click here.
- For more information on quality KPIs, click here.
- For more information on maintenance KPIs, click here.
If you want us to help you turn the data you collect daily from your production processes into actionable insights, contact us to request a demo of our Control Tower module.