Mini Case Study - Supply Chain KPIs - Key Performance Indicators

This guy did amazing things with just ONE KPI.
You don't need lots of KPIs to effectively manage Logistics and Supply Chain operations.

Just the right ones!

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[andrewkunz]

Conversely, I've seen a focus on the WRONG KPI have adverse effects. I signed on two months to a warehouse directly supporting a vehicle production line and they chose at some point to focus on Parts Per Million Delivered as the main, most important KPI to track, target, and reduce. Naturally, this has led the various teams (who have trouble working together to begin with) to focus on small, high quantity per bin parts delivery, and sideline the processes surrounding large, one per vehicle parts.
Unfortunately, they haven't seemed to realize, and I haven't been very good at convincing them, that an hour of lost production for 130 screws is not somehow ten times worse than an hour of lost production for 13 engines. They're the same - but because the incorrect KPI is prioritized, missing a pan of screws over a transmission has an outsized effect on team/department KPI, and therefore team raises/promotions/bonuses.
The warehouse management team here spends alot more time talking about, iterating on, and attempting to improve the process for all the small pans of 500 screws/nuts/widgets that get missed instead of the engines, despite engines taking many more deliveries, more work, and more space, and resulting in more downtime.

[supplychainsecrets]

Amazing what you ca do with just One KPI! There are lots of KPI videos on this channel if you need more information. Just use the search feature.

[sultanjihad]

can you please explain what exactly do you mean by order lines picked per hour?

[GIGANTESdaLOGISTICA]

(GOSTEI MUITO DO CONTEÚDO.) VERY ENJOYED THE CONTENT.

[datascience]

Hello, I have a question. Is there a real difference between KPI and specification limits? I get quite confused with these concepts as they seem like the same thing, but they also seem to be addressed differentely.

[SupplyChainTutorials]

In todays cut-throat competition Focusing one KPI would be difficult. How one can prioritize thier KPIs when u have to focus many aspects in the business. Pls comment