What do key performance indicators (KPIs) represent in Lean Six Sigma?

Key Performance Indicators (KPIs) are metrics used by organizations to evaluate their success in achieving specific business objectives. In Lean Six Sigma, KPIs assist in measuring performance against desired targets and provide insight into how effectively an organization is operating toward its goals.

By focusing on values that indicate organizational effectiveness in achieving business objectives, KPIs enable teams to monitor progress, identify areas for improvement, and drive decision-making based on data. This alignment with strategic objectives is fundamental in Lean Six Sigma, which seeks to enhance processes and reduce variation, ultimately leading to improved performance outcomes.

While employee satisfaction, customer complaints, and product sales are important metrics, they do not encapsulate the broader organizational effectiveness that KPIs aim to measure in the context of Lean Six Sigma. KPIs are comprehensive in their scope and impact, serving as a benchmark for assessing the overall health and success of organizational strategies.