Which metrics should organizations use to evaluate the success of process improvements?

Metrics are vital to assess whether a process improvement initiative is delivering its intended benefits. The right metrics depend on the goals of the initiative—cost reduction, speed, quality, etc.

Common Process Improvement Metrics:

• Cycle Time:

  • Time taken to complete a task or process from start to finish.

  • Shorter cycle times indicate increased efficiency.

• Error Rate or Defect Rate:

  • Number of errors per unit of output.

  • A key measure of quality.

• Throughput:

  • Volume of output produced within a given time frame.

• Cost per Transaction:

  • Measures cost efficiency in repetitive processes.

• Customer Satisfaction (CSAT/NPS):

  • Captures the impact of internal changes on external experiences.

• Employee Productivity:

  • Tracks output per employee before and after changes.

• First Pass Yield (FPY):

  • Measures the percentage of work completed without rework.

Using a combination of leading and lagging indicators provides a comprehensive view of improvement outcomes.

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