Performance Measurement Systems

Most KPIs in manufacturing aren’t wrong. They’re just misunderstood, misused, or misaligned. Here’s how to fix that 👇 1/ OEE (Overall Equipment Effectiveness) – Misused as a benchmark instead of a diagnostic tool → Use it to find bottlenecks, not to chase 100% 2/ First Pass Yield – Misinterpreted as a pure quality metric → Always pair it with rework data for full context 3/ Downtime – Often tracked, rarely categorized → Split into planned vs unplanned & then go deeper (reason codes) 4/ Scrap Rate – Used in isolation → Relate it to production volume and trends over time 5/ Cycle Time – Teams chase faster cycles → Instead, focus on consistency and takt time alignment 6/ Lead Time – Understood only as delivery time → Include every touchpoint, from raw material to finished product 7/ Throughput – Taken as an output metric → It’s also a signal for process flow health 8/ Changeover Time – Seen as “something to reduce” → Use SMED principles to reduce waste, not cut corners 9/ Capacity Utilization – More ≠ better → Balance with actual demand and takt time 10/ Inventory Turnover – Misjudged without a benchmark → Find the right rate for your product mix — not just “higher” 11/ MTBF (Mean Time Between Failures) – Tracked without root causes → Always contextualize with operator, part, and process data 12/ Overall Labor Effectiveness (OLE) – Sounds complex, becomes ignored → Break into Availability, Performance, Quality, simplify and share 📌 Remember: KPIs are tools, not goals. Use them to make better decisions, not just prettier reports. P.S. Liked this? Repost ♻️ and follow me Angad S. for more!

Real-time monitoring isn’t just a technical upgrade—it’s a mindset shift. After 25+ years in validation, temperature mapping & compliance, I've seen how small, data-driven changes can spark massive operational improvements. Here’s an insight that’s reshaped how I approach monitoring: deviations rarely happen out of nowhere. They leave breadcrumbs. And those breadcrumbs? They're in your trend reports. 💡 𝗜𝗺𝗮𝗴𝗶𝗻𝗲 𝘁𝗵𝗶𝘀: ~ Setting up alerts that flag anomalies the moment they occur. ~ Spotting a temperature drift early—before it escalates into a product recall. ~ Analyzing months of data to uncover hidden patterns that traditional checks miss. This isn’t just theory. Monitoring systems today are capable of: - Flagging events like “spikes” or “dips” in real time. - Calculating standard deviations to detect subtle variability. - Cross-referencing multiple sensors to pinpoint inconsistencies. For example, in a recent analysis of trend data, a deviation pattern helped uncover a failing compressor—before it affected product stability. Catching it early saved thousands in potential losses. When you leverage validated systems and set smart thresholds, you're not just monitoring equipment—you’re safeguarding product quality, ensuring compliance, and driving operational efficiency. If you're navigating how to adopt or optimize continuous monitoring, let’s connect. Sometimes, a subtle shift in perspective can revolutionize your approach. 🔗 Follow me for more insights on validation, mapping & monitoring and operational excellence!

📊 Why Tracking KPIs & Regular Reviews are Non-Negotiable at Frigate 🚀 When we started Frigate, I thought winning orders was all about price—quote lower, win the deal. But over time,We realized price is just one part of the game. Speed, reliability, and execution are equally, if not more, important. And the only way to get better at them? Tracking, measuring, and improving. If something isn’t working, We don’t want to assume the problem—I want to see the numbers and fix it fast. That’s why KPIs (Key Performance Indicators) are at the heart of how we operate at Frigate. 🔹 What We Measure & Why It Matters 📍 1️⃣ RFQ Response Time ⏳ – The Faster We Quote, The More We Win There’s no room for slow responses in this business. If a buyer gets a faster, competitive quote elsewhere, we lose—simple as that. ✅ We track how long it takes from RFQ to supplier quote submission. ✅ The goal? Bring this down to hours, not days. 📍 2️⃣ Quote-to-Win Ratio 🎯 – Are We Actually Competitive? Sending quotes means nothing if they don’t convert. I always check: ✅ What percentage of our submitted quotes turn into real orders? ✅ If we’re losing, is it price, lead time, or supplier limitations? 📍 3️⃣ On-Time Delivery Rate 🚚 – Execution is Everything A great price means nothing if the order doesn’t arrive on time. I review: ✅ How often our suppliers meet delivery timelines ✅ If a supplier is consistently late, they don’t stay in our system 📍 4️⃣ Gross Margin Per Order 💰 – Are We Pricing Right? I used to think winning orders was the only goal—until I realized some orders weren’t even profitable. ✅ Now, every order is checked for gross margin before quoting ✅ If we’re cutting too close, I adjust our quoting strategy immediately 📍 5️⃣ Repeat Buyer Rate 🔄 – Are We Just Chasing New Customers? New customers are expensive to acquire. If they don’t return, we have a problem. ✅ I track how many customers come back for more orders ✅ If the number drops, I dig deep—was it pricing, experience, or something else? 🔹 KPIs Aren’t Just Numbers – They Drive Real Decisions Every week, I sit down with the team to review what’s working and what’s broken. 📌 If RFQs aren’t converting? We rethink our pricing model. 📌 If suppliers are delaying? We replace them. 📌 If gross margins are dropping? We fix our cost structure. This isn’t about tracking for the sake of tracking. It’s about seeing the reality of the business and acting fast. 🔹 Final Thought: If You’re Not Tracking, You’re Guessing In sourcing, small inefficiencies compound fast. Delayed quotes, unreliable suppliers, and bad pricing can quietly kill a business. At FRIGATE, we don’t guess. We measure. We improve. And that’s how we stay ahead. 📢 How often do you review your KPIs? #Sourcing #KPIsMatter #Manufacturing #SupplyChain #DataDrivenGrowth #Procurement #Frigate

You can’t improve manager performance if you don’t know what “good” is. Benchmarks fix that. Most companies use surveys to measure manager performance. But surveys capture sentiment, not behavior. Benchmarks reveal what actually drives team outcomes. Here’s what leading organizations are tracking: 1. Focus time. Top quartile managers create 90+ minute blocks daily. Below median managers lose 3+ hours to interruptions. Every 30-minute block lost means slower problem solving and execution. 2. Collaboration patterns. Effective managers work with 15–25 strong collaborators weekly. Too many collaborators = shallow alignment. Too few = risk of isolation or bottlenecks. 3. Meetings and 1:1s. High-performing teams meet in smaller, faster cycles. Fewer meetings with 10+ attendees improves ownership. Weekly 1:1s boost engagement and growth metrics by over 20%. 4. Workload and Slack activity. Managers above the 75th percentile in Slack messages show higher burnout. Excess messages correlate with fewer focus hours and less strategic time. Longer workdays don’t lead to higher performance, just higher churn. Behavioral benchmarks make manager effectiveness measurable. And give teams a way to improve, not just evaluate. How does your manager data compare?

Last week, a CMO sent me their 'daily executive dashboard.' It had 37 metrics. No wonder nobody was making decisions. Measurement strategies (and reporting) should differ across teams/roles. DAILY DECISIONS (Performance Teams): - ROAS by channel - Traffic & CVR - Inventory & promo plans Measurement: - Platform metrics - Basic measurement - Last-click attribution is ok here - Incremental coefficients are nice to have Why: Speed over perfection. Daily optimization needs quick data. Tip: DO NOT send these to your execs unless you want your inbox roasted. WEEKLY OPTIMIZATIONS (Marketing Managers): - Campaign performance - Segment/audience behavior - Creative performance - Funnel analytics Measurement - Multi-touch attribution (MTA) - A/B testing (campaign/adset/ad) - Site/Landing Page CRO Why: Balance between speed and accuracy. Enough data to spot real patterns. MONTHLY STRATEGY (Department Heads): - Channel effectiveness - CAC by segment - LTV & RFM trends - Market share Measurement: - Incrementality testing - cohort analysis Why: Time to validate true business impact. QUARTERLY PLANNING (C-Suite): - Growth trajectory & Forecasting - Unit economics - Marketing efficiency (MER) Measurement - Marketing mix modeling - Scenario planning Why: Long-term strategic decisions need comprehensive data. The goal is to measure and report based on: - The speed of the decision - The team making it - The right measurement approach Performance teams need daily data for tactical optimization. Executives need quarterly trends for strategy. Sending both teams the same daily dashboard? - That's why your media team is drowning in "tweaks and signoffs". - That's why your managers don't have time to review trends. - That's why your executives are lost in the noise. Different teams, different decisions, different data needs. Match your measurement & reporting to your audience. ♻️ Share this with a marketer who needs it 🔔 Follow me for more rants on data + marketing

Asking for a raise? Clarify your impact first. To make a convincing case, tie your work to the MOST Key KPIs: ▪︎ Revenue ▪︎ Cost savings ▪︎ Risk mitigation ▪︎ Productivity upgrades ▪︎ Customer satisfaction Obviously revenue and cost savings are the biggest whoops. But even if your work isn’t directly tied to either of them, you can show how you’ve enabled them. Here’s how to frame your value: 1. Revenue Growth “Streamlining processes for the sales team gave them more time to close deals.” “My reports helped leadership spot upselling opportunities, driving revenue growth.” 2. Cost Savings “Learning and implementing [tool / system] reduced [expense] by X%, saving about $[amount].” "Identifying and fixing issues early prevented project delays and unnecessary redos.” 3. Productivity Gains “Automating [task] cut turnaround times by X%, whuch mean Y more hours per week for the team to focus on high-value projects.” “I created a knowledge base that sped up onboarding, so new hires could make an impact sooner.” 4. Customer Satisfaction “Improving [product / service] accuracy reduced complaints and made customers warmer to upsells.” 5. Risk Mitigation “Introducing [process] reduced the risk of [specific issue], which would have lost investor confidence.” “I created contingency plans to safeguard operations during crises.” And any numbers you can pin down will make a huge difference. Don't be shy about asking coworkers to see stats that involve your work. Leadership responds to measurable impact. In general: ▪︎ Time saved. ▪︎ Revenue generated. ▪︎ Costs reduced (short or long). Your value is your leverage. Your metrics are your proof. Be bold. Be specific.

Rethinking Performance Reviews: From Ratings to Impact What if we stopped assigning performance ratings and instead started recognizing performance by its impact? Employers: If you are embracing a performance model rooted in continuous feedback and want to develop a growth-oriented culture, consider using “Degree of Impact” as your metric. "Degree of Impact" measures the scope, significance, and sustainability of an employee's contributions across four dimensions: 1.       Business Outcomes – Driving team and organization results 2.       Customer Value – Improving customer results, experience, and satisfaction 3.       Team Success – Collaborating to elevate others and their results 4.       Enabling Others – Coaching, mentoring, and sharing tools as well as knowledge Instead of a static rating scale, we assess outcomes in terms of Low, Medium, or High Impact: Low Impact - Definition: Contributions are consistent with role expectations but have a localized or short-term effect. Indicators: (a) Completed assigned tasks reliably (b) Minimal innovation or change driven by employee (c) Supported team members occasionally (d) No measurable change in business or customer outcomes Medium Impact - Definition: Contributions moderately exceed role expectations and affect broader team or process outcomes. Indicators: (a) Initiated improvements or solved moderate challenges (b) Enhanced efficiency or quality in a repeatable way (c) Regularly assisted peers or improved team dynamics (d) Helped retain customers or improved customer feedback High Impact - Definition: Contributions significantly exceed role expectations, drives lasting change or substantial business/customer success. Indicators: (a) Led major initiatives or innovations (b) Directly contributed to revenue growth, cost savings, or major customer wins (c) Elevated team performance through mentoring, coaching, or creating reusable resources/tools (d) Role-modeled feedback and improvement culture; helped multiple others succeed This model shifts the focus to fueling high performance broadly. It gives leaders better insight into who’s creating real, scalable, and sustainable value. It can also be linked to compensation and career growth: Base pay increases and bonuses reflect the level of impact, not just tenure or task completion. This approach helps build a culture of ownership, growth, recognition, and continuous improvement. Are you using something similar in your organization? #Compensation #CareerDevelopment #HR #TotalRewards #PerformanceManagement #ContinuousFeedback #PeopleFirst #CompensationConsultant #TalentManagement https://shorturl.at/0BeN4

“The scoreboard doesn’t lie. It doesn’t care how you feel—it only reflects how you’re performing.” — Bill Parcells Post #20: Implement Real-Time KPI Tracking In fast-moving markets, lagging indicators are a liability. They tell you what already happened—when it’s too late to change it. And yet, nearly every leader I work with has KPIs buried in reports, scattered across systems, or delayed by manual processes. The result? Poor visibility, slower response, and misaligned execution. But the real issue isn’t just access to data—it’s what you’re tracking. Most dashboards are loaded with lagging metrics: revenue, churn, EBITDA. Important, yes—but reactive. The unlock is identifying the leading indicators that predict those outcomes: + What inputs drive the output? + What behaviors or activities signal movement—before it hits the scoreboard? We helped one team rebuild their KPI engine around this concept. Instead of waiting for monthly revenue data, they tracked real-time lead flow, proposal activity, average sales cycle velocity, and product usage signals. This gave them a two-week head start on performance gaps—and helped allocate resources faster, with more precision. Here’s how to move from reactive to real-time: + Define the critical few metrics—6–10 that blend predictive and performance indicators. + Automate where possible—eliminate the latency that kills momentum. + Make it visible across functions—alignment starts with shared awareness. + Review weekly, act daily—don’t just monitor—respond. The goal isn’t more data. It’s better foresight. Because the best leaders don’t just report what happened—they lead by knowing what’s coming next. Next up: Post #21 – Strengthen Sales Enablement #CEOPlaybook #RealTimeKPIs #LeadingIndicators #PredictivePerformance #LeadershipInTurbulence

Most businesses drown in metrics. Too many KPIs. Too many dashboards. Too much noise. The result? • Teams lose focus • Leaders chase symptoms, not signals • Time is spent updating charts, not solving problems Here’s the truth: You don’t need more data. You need the right few metrics that actually drive performance. Here’s a simple 5-step approach I use to help teams cut through the clutter: 1. Inventory everything – List all the metrics, who uses them, and why. 2. Map to purpose – If it doesn’t support a decision or priority, kill it. 3. Identify the vital few – Pick 3–5 metrics per function that truly move the needle. 4. Build a tiered system – Align top-level KPIs to functional and front-line measures. 5. Eliminate, consolidate, automate – Make room for insight, not reporting theater. Bonus Tip: Run a quarterly “Metric Clean-Up” session—if a metric doesn’t drive action or decision-making, it’s a candidate for retirement. Leading vs. Lagging Check: Ask yourself: Does this metric help us influence the future (leading)? Or just tell us what already happened (lagging)? If your dashboard is 90% rearview mirror, it’s time for a redesign. More focus = better execution. Want help finding your “critical few”? Let’s talk. #BusinessOperatingSystem #KPIs #ContinuousImprovement #Leadership #LeanThinking #Execution #SimplifyToScale #OperationalExcellence #DataDrivenDecisions #BOS #LeadWithMetrics

Uncomfortable Reality: You won't improve what you don't measure This goes for everything, Quality is no exception. Quality metrics serve as the foundation of operations, quality management and continuous improvement. Here are six essential quality metrics that you need to know to boost your business: 1/ Quality Rate ↳ % of products/services that meet quality standards ↳ High rate = effective processes, satisfied customers ↳ Low rate = improvement needed 2/ Defects Per Million Opportunities (DPMO) ↳ Similar to DPPM, but considers total opportunities for defects ↳ Allows organizations to assess processes holistically ↳ Helps target specific areas for improvement ↳ Comprehensive quality performance metric 3/ Rework Percentage ↳ Proportion of work that must be redone due to defects/errors ↳ High percentage signals process inefficiencies ↳ Important metric for cost reduction initiatives 4/ Process Capability ↳ Measures process within tolerances ↳ Helps organizations determine process consistency ↳ Important for customer satisfaction and management 5/ Defective Parts Per Million (DPPM) ↳ Quantifies the # of defective parts in a million produced ↳ Crucial for high volume operations ↳ Helps identify trends in defects 6/ Process Capability Index (Cpk) ↳ Takes process capability even further ↳ Helps center process performance ↳ helps decrease variability Become a great leader - measure to improve.