Four Simple Key Performance Indicators for Continual Improvement

Live Webinar

  • 60 minutes

Henry Ford credited his front-line workers, as opposed to his management team, with many if not most of the improvements that made his company the most successful on earth. A contemporary source (Charles Buxton Going's preface to the 1915 book Ford Methods and the Ford Shops) cited "…an absolutely incredible enlargement of output reaching something like one hundredfold in less than ten years and an enormous profit to the manufacturer." This performance resulted from Ford's success secret; the ability to recognize all forms on sight, and the ability to teach it to his workforce.

Join this session by expert speaker William Levinson, this webinar's purpose is to equip attendees with the same knowledge (and the ability to impart it to their workforces).

Session Highlights:

  • Know, in the language of money and bottom-line performance, the benefits of removing all forms of waste (Muda) from the organization. 

  • Recognize that poor quality is the only one of the Toyota production system's Seven Wastes that announces its presence. The others are (1) asymptomatic, (2) often present 100% of the time because they are built into the job, and (3) often more costly than poor quality. These wastes go uncorrected because they do nothing to draw attention to themselves.

  • Henry Ford used four simple key performance indicators (KPIs) that can be easily taught to an entire workforce in less than an hour—the contents of this 60-minute webinar should, in fact, meet this requirement. They are easily understandable, and immediately usable, by people of all educational and experience levels. Their deployment at the basic level requires no data and no analysis at all; the only prerequisite is the ability to observe.  The ford motor Company used them to achieve unprecedented financial and performance results with them more than 100 years ago. All seven TPS wastes can be expressed in terms of these four KPIs. 

  • Waste of the time of things (cycle time, to which inventory, one of the Seven Wastes, is proportional). 

  • Waste of the time of people (motion efficiency, one of the Seven Wastes). 

  • Waste of materials; any stock or consumable that is thrown away is waste.

  • Waste of energy; this KPI supports the ISO 50001 energy management system standard 

  • When somebody identifies any of these wastes, the organization's existing corrective and preventive action (CAPA) process can be used to reduce or eliminate it. All we need to do is treat the waste as a gap between current performance and desired or ideal performance, and then treat the gap line we would a nonconformance with one or more root causes that can be identified and eliminated.

Why you should attend:

Attendees will learn food's four key performance indices (KPIs) which are easily understood, easily applied, and easily taught to all members of the workforce as well as external stakeholders (relevant interested parties). None of them rely on, at the basic level, on analytical techniques or data collection. Waste that previously hid in plain the view becomes immediately visible to anybody who knows these KPIs, and the principal barrier to removal of waste almost always fails to recognize itas opposed to a lack of a technical solution. One company doubled a job's labor efficiency by simply moving some work tables closer together; it's often that simple.

Who Should attend:

  • Manufacturing

  • Quality professionals

  • Practitioners

  • People with responsibility for continual improvement and lean manufacturing

You may ask your Question directly to our expert during the Q&A session.

** You can buy On-Demand and view it at your convenience.

William Levinson

William Levinson

William A. Levinson, P.E., is the principal of Levinson Productivity Systems, P.C. He is an ASQ Fellow, Certified Quality Engineer, Quality Auditor, Quality Manager, Reliability Engineer, and Six Sigma Black Belt. He holds degrees in chemistry and chemical engineering from Penn State and Cornell Universities, and night school degrees in business administration and applied statistics from Union College, and he has given presentations at the ASQ World Conference, TOC World 2004, and other national conferences on productivity and quality.

Levinson is also the author of several books on quality, productivity, and management. Henry Ford's Lean Vision is a comprehensive overview of the lean manufacturing and organizational management methods that Ford employed to achieve unprecedented bottom line results, and Beyond the Theory of Constraints describes how Ford's elimination of variation from material transfer and processing times allowed him to come close to running a balanced factory at full capacity. Statistical Process Control for Real-World Applications shows what to do when the process doesn't conform to the traditional bell curve assumption.

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