12 · Key Performance Indicators (KPIs)
1. GEMBA WALK STAGE
During the Gemba Walk
2. BRIEF DESCRIPTION
Key Performance Indicators (KPIs) are measurable values that demonstrate how effectively an organization is achieving its value proposition, goals and targets. The definition of KPIs is very important to the lean transformation, as it enables teams to measure the baseline and track how practices impact the different processes across the organization. This ensures that the impact is quantifiable and teams are engaged, as the improvement results are known and shared.
3. HOW TO USE KEY PERFORMANCE INDICATORS IN THE GEMBA WALK
KPIs provide valuable insights into the up-to-date state of the processes for the Gemba team to act upon. During the Gemba Walk, the KPIs on Gemba boards are reviewed and improvement opportunities are identified. The Gemba Walk team can set its own KPIs which can be specific to the Gemba Walk, like the number of improvement ideas generated, improvements implemented, opportunity gaps still to be closed, and others.
4. ROLES AND ACTIVITIES
Leader: Identifies and defines few and strategic KPIs to be measured. Makes sure the KPIs are updated. Facilitates the review of KPIs and encourages improvement suggestions
Facilitator: Supports with training and explanation of KPIs if needed, collaboratively develops Gemba Walk KPIs
Team member: Reviews KPIs, proposes improvement actions
5. EXPECTED BENEFITS FOR THE GEMBA WALK
Provides standard metrics to identify the baseline, setup targets and continuously track the improvements
Enables the quick identification of challenges
Creates a transparent monitoring system
Rewards employees when improvements are reflected on the agreed KPIs
6. ORGANIZATIONS THAT USE KPIS
Airbus Defence and Space, Barry Callebaut, Bocar Group, CEMEX, IMC, Interface, Rolls-Royce Motor Cars, Swisscom and Thermo Fisher Scientific