Key indicators for process improvement

Published on 02/04/2024

Key indicators for process improvement

Published on 02/04/2024
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Key indicators for process improvement

Key Performance Indicators for Process Improvement

Key performance indicators are essential within a process-managed company. This type of management requires an analysis and measurement of results, which is achieved through these indicators. Let’s discuss what they are and how to use them.

Also known as KPIs, they are considered quantifiable, assessable, and classifiable values obtained by comparing data related to a process over a certain period of time.

A key indicator allows measuring its results in reference to some initial objective. Each process within a company will have its own indicators, which usually vary over time. KPIs will help to more precisely determine if a process meets its set objectives.

Characteristics of Key Performance Indicators

Although key indicators often vary depending on the process, they share common characteristics:

  • They are tools that help determine process results in relation to the initially set objectives.
  • They aid the organization in progressing and improving its processes.
  • They serve to reduce operating costs.
  • They enable setting objectives related to the obtained results.
  • They are comparable over time and help identify trends.
  • The information they provide is reliable.
  • It is easy to establish a definition and use of KPIs.
  • They are quantifiable.

Categories of Key Indicators

Key indicators can be divided into categories. The most common ones are as follows:

  • Efficiency-related: linked to the capacity and/or accuracy in achieving process objectives.
  • Efficiency-related: linked to the resources invested in achieving process objectives.
  • Compliance-related: linked to the degree of achieving process objectives.
  • Productivity-related: linked to process productivity levels.
  • Evaluation-related: linked to measuring the performance obtained from an activity or process.
  • Quality-related: linked to process quality levels. They help identify possible complications, problems, etc.
  • Customer satisfaction-related: linked to process quality levels from the customer’s point of view.

Purposes and Benefits of Key Indicators

Key indicators have one objective: to measure the success of the process in achieving its initial goals. Additionally, KPIs as a measurement system must meet the following parameters:

  • They must communicate the company’s strategy.
  • They must communicate the goals.
  • Their function is to identify problems and opportunities.
  • They help diagnose problems.
  • They facilitate the understanding of processes.
  • They help define responsibilities within each process.
  • They facilitate the identification of necessary initiatives and actions.
  • They measure behaviors related to processes.
  • They facilitate delegation to individuals.

The KPIs are a broad topic. It should be noted that any indicator system within process management must be continuously maintained, constantly reviewing whether they meet their objectives.

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