What is Key Performance Indicators?

Key Performance Indicators (KPI) are metrics used to objectively measure the performance of a process, project, department, or company. In the industrial sector, and particularly in plastic manufacturing, KPIs help evaluate operational efficiency, product quality, customer satisfaction, and other critical areas for strategic decision-making.

A KPI must be specific, measurable, achievable, relevant, and time-bound. Its main purpose is to provide clear, quantifiable data that serves as a reference point to assess whether predefined objectives are being met. In other words, KPIs act as a compass that guides the organization toward its goals, allowing for the detection of deviations, root cause analysis, and the implementation of continuous improvement actions.

In the context of plastic injection molding, numerous KPIs can be applied at different operational levels. Some of the most common include: OEE (Overall Equipment Effectiveness), which measures the overall efficiency of production equipment; the defect or rejection rate, which evaluates product quality; the manufacturing lead time, which reflects the system’s responsiveness; and the on-time delivery rate, which directly impacts customer satisfaction and company competitiveness.

Other indicators focus on resource use, such as energy consumption per unit produced, raw material utilization rate, or the percentage of waste generated. These KPIs not only help optimize operations but also encourage sustainable and responsible practices within the organization.

Proper implementation of KPIs requires clearly defining what to measure, how to measure it, how often, and who is responsible for monitoring. It is also crucial that the data used is reliable, up-to-date, and relevant to the specific area being evaluated. A common mistake in many companies is collecting a large number of indicators without analyzing their real usefulness, which can result in an overload of irrelevant information.

Once established, KPIs must be monitored continuously and communicated clearly across all organizational levels. This promotes transparency, engagement, and alignment with strategic goals. Tools such as dashboards, periodic reports, or real-time visualizations help maintain focus and support data-driven decision-making.

It’s important to note that Key Performance Indicators (KPI) are not static. As market conditions, technologies, or business priorities evolve, indicators must be reviewed and adjusted to remain useful and relevant. Regular reviews ensure that the organization is measuring what truly matters and adapting effectively to new challenges.

In summary, KPIs are essential tools for managing performance and driving continuous improvement in any industrial setting. In the plastic injection sector, using KPIs effectively enables companies to improve efficiency, reduce costs, ensure quality, and enhance customer satisfaction. Knowing what to measure, how to interpret it, and how to act based on the data is key to staying competitive and moving toward smarter, results-oriented production.