Lesson 1Selecting operational KPIs aligned to ISO 9001 and customer needsThis section explains how to choose operational KPIs that reflect ISO 9001 requirements, customer expectations, and business priorities, ensuring each indicator is measurable, balanced, and clearly linked to processes and strategic objectives in manufacturing.
Translating customer needs into measurable KPIsLinking KPIs to ISO 9001 clauses and processesBalancing quality, delivery, cost, and safety metricsDefining clear KPI purpose, scope, and boundariesLesson 2Continuous improvement mechanisms: PDCA cycles, simple improvement events, and linking audits to corrective plansThis section describes how to embed KPIs into PDCA cycles, run simple improvement events, and connect audit findings to corrective and preventive plans, ensuring continual improvement is systematic, data driven, and aligned with ISO 9001 standards.
Designing PDCA cycles around key KPIsRunning focused, data-driven improvement eventsLinking audit findings to corrective plansMonitoring action effectiveness with KPIsStandardizing and sustaining improvementsLesson 3Using KPIs in management review: agenda items, required inputs, decisions, and follow-up actionsThis section explains how to integrate KPIs into management review, define agenda items and required inputs, evaluate performance and risks, make evidence-based decisions, and assign follow-up actions with deadlines and responsible owners for operations.
Structuring a KPI-focused review agendaRequired KPI inputs and supporting evidenceEvaluating trends, risks, and opportunitiesDocumenting decisions and action itemsTracking completion and verifying outcomesLesson 4KPI 5: Corrective action closure and effectiveness rate — definition, calculation method, frequency, ownerThis section defines the corrective action closure and effectiveness KPI, including formula, data sources, sampling frequency, and ownership, and explains how to interpret trends, identify systemic issues, and drive sustainable corrective actions in manufacturing.
Defining closure and effectiveness criteriaKPI formula, units, and calculation examplesData sources, sampling plan, and frequencyAssigning process owners and escalation pathsAnalyzing trends and recurring root causesLesson 5How to set targets, data collection methods, and reporting cadenceThis section details how to set realistic yet challenging KPI targets, design reliable data collection methods, define sampling and responsibilities, and establish reporting cadences that support timely analysis, decision making, and escalation in operations.
Defining baseline, stretch, and regulatory targetsSelecting data sources and sampling approachesAssigning KPI ownership and data stewardsDesigning dashboards and visual KPI reportsChoosing review frequency and escalation rulesLesson 6KPI 4: Rework and scrap rate — definition, calculation method, frequency, ownerThis section defines the rework and scrap rate KPI, including calculation method, data sources, frequency, and ownership, and explains how to separate rework from scrap, quantify cost impact, and prioritize process improvements for quality control.
Defining rework, scrap, and exclusionsKPI formulas for volume and cost impactData capture from production and financeAssigning ownership to process leadersUsing Pareto to target top loss driversLesson 7KPI 1: Defect rate — definition, calculation method, sample frequency, ownershipThis section defines the defect rate KPI, including units, formula, sampling strategy, and ownership, and shows how to segment data, interpret variation, and use results to prioritize process improvements and preventive quality actions in manufacturing.
Defining defect categories and acceptance rulesKPI formula, denominator, and data unitsSampling plans and inspection frequenciesAssigning ownership and cross-functional rolesUsing defect data for root cause analysisLesson 8KPI 2: On-time delivery — definition, calculation method, sample frequency, ownershipThis section defines the on-time delivery KPI, including calculation rules, data sources, sampling frequency, and ownership, and explains how to handle partial shipments, customer calendars, and use results to improve planning and logistics effectively.
Defining on-time and acceptable delivery windowsKPI formula and handling partial shipmentsData capture from ERP and logistics systemsAssigning ownership across supply chainAnalyzing delays and implementing actionsLesson 9KPI 3: Customer complaints per million parts — definition, calculation method, frequency, ownerThis section defines the customer complaints per million parts KPI, including formula, data sources, frequency, and ownership, and shows how to classify complaints, link them to processes, and use results to reduce recurrence and risk in operations.
Defining complaint types and severitiesKPI formula, denominator, and time baseData sources from CRM and service logsAssigning ownership and response timelinesUsing complaint trends for risk analysis
