Get Certified for Operational Excellence’s Post

👉 💡 🎯 𝙆𝙋𝙄 𝙨𝙩𝙖𝙣𝙙𝙨 𝙛𝙤𝙧 𝙆𝙚𝙮 𝙋𝙚𝙧𝙛𝙤𝙧𝙢𝙖𝙣𝙘𝙚 𝙄𝙣𝙙𝙞𝙘𝙖𝙩𝙤𝙧 and is a way to measure business performance in defined areas. 𝗞𝗣𝗜𝘀 tend to be lagging indicators and show performance over some time. A way to understand the concept of a cascaded 𝗞𝗣𝗜 is to imagine a waterfall, tumbling down multiple steps. At the top of the waterfall is the top-level 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗞𝗣𝗜. A step down might be 𝗱𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁𝗮𝗹 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗶𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿𝘀, with the final step being the project KPI. In a business context, the top-level KPI might be 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲, the department KPI being production efficiency and the project 𝗞𝗣𝗜 is a specific machine set-up time.

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