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Topic Title: Key Performance Indicators (KPI)
Topic Summary: Developing KPIs for a Repair Shop (High Mix- Low Volume)
Created On: 07/17/2017 04:48 PM
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07/18/2017 03:38 PM
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Hi all,

I am trying to develop KPIs for a repair shop. I have thought of three important ones and need suggestions on more KPIs or information about how I could develop others.

-Average Cycle time
-Number of Customer Complaints per month
-Average time an item is a "Work In Progress" (WIP)

Please provide your input and let me know how I can improve. I am an intern and open to learning!

Thank you!
07/21/2017 10:26 AM
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Robert Simonis

Lead time and actual cycle time are as important, or more, than average. Track internal errors, should be more accurate than customer complaints. Track estimate accuracy, both for time and cost.
07/21/2017 11:53 AM
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Paul Johnson

Keep in mind with any metric you want it to be meaningful and add value by showing important information that will drive behavior for improvement. So ask yourself, what metric will drive the behavior in this department, cell, process etc. that is meaningful to that group and supports the business objectives. Metrics for the sake of metrics is a waste of time. Putting out graphs and extravagant metrics most often are not understood by the rank and file. In Steven R Covey's "The 4 disciplines of Execution" training materials they discuss implementing a simple scoreboard. At a football game if you look at the scoreboard you have all the information you need, the score, who has the ball, how many more yards to reach a 1st down, how much more time is left, all you need to know and nothing more. I use a simple approach, Cost quality, throughput - every metric is generated from these three principles and how it applies to the specific application, and how the individuals can actively contribute to it's improvement. More is not necessarily better when it comes to metrics, so keep it lean!
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