Key Performances Indicators (KPI)

Abstract

This chapter provides a simple and practical approach to key Operations performance parameters known as Key Performance Indicators. The four major groups of KPI’s follow the product life: Design, Production, Financial and Supply Chain. The specific performance parameters chosen must accurately measure an important aspect of each group, and be limited in number so as to allow focus and provide a clear direction for performance improvement. Target values of KPI’s should reflect overall improvement goals for the Operations and the Product performances over time.