What is a KPI?
The term KPI stands for Key Performance Indicator.
The KPI is a numerical element that allows to measure the performance of a project.
Why monitor KPIs?
Key performance indicators are, if they are well interpreted, essential data for monitoring a project.
They exist for each department of the company and are therefore a relevant representation of the company and the progress of the project.
To represent them in a judicious way, the objective defined at the beginning of the project is compared with the real value of the indicator over time.
The KPIs thus make it easier to evaluate the situation in real time and thus allow for more appropriate decision-making.
Choose KPIs that are adapted to your strategy and your objectives
The first step to do a good project tracking is to choose the right KPIs. It is advisable to choose a KPI for each of your objectives.
KPIs are generally classified in four categories:
- Deadlines
- Budget
- Quality
- Efficiency
You must therefore determine precisely your objectives in terms of time, budget, quality and efficiency.
During the course of the project, the comparison between the objectives and the actual situation will make it possible to determine if other means should be used to get closer to the objectives.
Define SMART KPIs
For better efficiency, it is important to choose SMART KPIs: specific, measurable, achievable, realistic and time-bound.
Monitoring the KPIs
After setting your KPIs, it is important to monitor the data produced.
This data can be collected by the machines, industrial tools, but also by the teams directly involved.
It is then a matter of sorting this data in order to bring out only the relevant ones.
It is therefore essential to structure the KPIs well, from the beginning if possible, and to give each department the necessary tools to observe the data efficiently.
Dashboards: the tool of choice for KPIs
For the visualization and interpretation of these data, dashboards are generally used to easily and efficiently monitor performance indicators.
They provide a real-time global vision of the situation, of all the actions implemented and of their impact.
Moreover, they are easy to understand by all the actors involved in the project. The project manager will be able to interpret these tables and make the necessary decisions if he/she spots a problem or an opportunity.
Zozio offers a tool to track KPIs
It’s important to choose a simple tool to track your KPIs effectively.
“Zozio’s solution allows you to track factory KPIs from its platform. Thanks to our APIs and geolocation system, Zozio’s platform retrieves data from the field in real time and displays it as a table or map in a simple and visual way.”
Bastien Triclot, co-founder and CEO of Zozio
Zozio’s platform offers modules that help identify and track KPIs in a simple and visual way.
Conclusion
KPIs are an essential tool for increasing productivity and overall plant efficiency.
Data analysis and interpretation is easy and allows for easy decision making for a successful project.
Written by Emma Guignard
