Improvement Teams need 2 KPI's to track their results and contribution

Have you ever seen an improvement team that fully reached their goal but the overall KPI needle didn't seem to have moved?
When selecting Improvement teams properly, you will narrow down their focus to a single Failure Mode, or at most one very specific process characteristic. This is the correct way to set the team up for success, but it does open a little pit you might fall into later - you've selected that focus because of its effect on an overarching KPI, but other circumstances will also affect that KPI. Sometimes, quite often actually, the team will have reached their goal but the KPI hasn't improved much; or alternatively the KPI may have improved for some reason, even though the team hasn't reached their goal at all.
These situations require different management reactions, but before you get there, you'll need to know which situation you've got - that's why Improvement and Problem Solving teams should always have 2 KPI's: you'll want the team to track that overall KPI that the business wants to improve; and you'll want the team to also track the specific issue or characteristic that they will be influencing (this is often called the Operational Performance Indicator, or OPI, since it's not Key to the whole business but rather describes what happens in this operation).
#continuousimprovement #projectmanagement #kpi
• Improvement Teams need...
- 00:00 Introduction
- 03:10 Cost Component Analysis
- 05:00 Identifying Improvement Areas
- 06:08 Defect Mode Analysis
- 08:36 Operational vs. Key Performance Indicators
- 10:03 Reporting Savings
Also, don't forget to check out my course on how to calculate and report project savings: www.tommentink.com/offers/Hdt...