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STAGE 0: INTRODUCTION AND ORIENTATION
STAGE 1: LOAD
STAGE 2: INVENTORY
STAGE 3: NAVIGATE
STAGE 4: KEEP
STAGE 5: EXTEND
STAGE 6: DEVELOP

1.4 Gather KPI And Establish North Star Goals [LINKED]

1.4 Identify and document the existing Key Performance Indicators. Typical KPIs include: 7S Audit Scores and Supplier Performance Scores, Inventory Record Accuracy & Turns, Material Handling Expense. Assess needs for additional KPIs.

Some caution needs to be applied when defining the KPIs that will be tracked, since every measurement requires some effort, not just once but every reporting cycle. It is easy to want to track a varieties of KPIs, but often companies lack the discipline to maintain the reporting requirements, especially if they require manual effort to update.

Our suggestion here is to identify an extensive list of potential KPIs, but just pick the top 2 or 3 to actually track. Use the Master Plan workbook to document these.

North Star goals are statements of how good we want to be, without expecting to actually reach perfection. The Material Flow process might include a North Start goal of “zero delivery shortages”, which recognizing that it may be impossible to actually achieve this goal. The purpose of a North Star goal is to ensure that we are continually moving in that direction. Any proposals that move away from the North Star goals (like adding more shortages but saving money in the short term) would presumably be rejected.

Create a list of North Star goals and document them in the Master Plan workbook.