How Digital Balanced Scorecard Enhance SQDCP Metrics?
Maximise the Power of SQCDP with Digital Balanced Scorecard
November 13, 2024
Do you know how Digital Balanced Scorecard can revolutionise manufacturing plants? It has an exceptional ability to monitor production processes, track performance, and drive continuous improvement through its potential visual management tools.
SQDCP board, one of the vital components of the Balanced Scorecard, visualises selected Key Performance Indicators (KPIs) and production metrics related to the Safety, Quality, Cost, Delivery and People aspects of the factory floor. Coming from the world of Lean manufacturing, the SQDCP board act as a plant floor dashboard that keeps everyone up to date with the state of the manufacturing process. Through quickly identifying and solving problems with the SQDCP board, business can achieve their strategic goals within the desired time.
Why SQDCP?
Safety, Quality, Cost, Delivery, and People are the five general performance elements that elucidate optimal manufacturing operations. Hence, gaining information regarding these five factors directly contributes to the achievement of organisational goals. It quickly conveys the happenings of the production environment under each category and drives continuous improvement activities.
Challenges in Managing SQCDP Metrics Without Digital Tools
Managing your SQDCP metrics with traditional techniques makes struggles and results in overall process failure. Let's identify the issues of not having a potential digital tool for evaluating SQDCP metrics.
Time-Consuming and Labour-Intensive Reporting
Delayed decision-making and slower response due to the lack of real-time data
Inconsistent reporting leads to human errors and subjective interpretation
Limited visibility makes siloed information and scattered data
No holistic view and slow problem identification
Inability to Track Long-Term Trends
Benefits of Integrating SQCDP with Balanced Scorecard
Balanced Scorecard software makes much sense in your operations by digitalising your SQDCP board and automatically generating data from the chosen metrics.
There are several ways to alter the arrangement of the letters SQCDP, including SQDCM, SQDCL, SQDCPS, ESQDCP, SQDCL, FCIL, etc.
Every organisation's needs and priorities are different, and the metrics board is chosen based on what is most relevant to its process. With the help of Balanced Scorecard software, organisations can make customisable SQDCP and other digital management dashboards. The flexibility and adaptability the Balanced Scorecard software provides in rearranging SQDCP enables the business to remain responsive and dynamic by measuring its performance. In addition, the ability of a Balanced Scorecard to align the performance metrics with the overall organisational strategy ends with goal achievement.
Features of SQDCP board
Clear visual layout: Using colour-coded statuses, graphs, charts, and icons, information is displayed in a comprehensive and user-friendly manner. Each category (Safety, Quality, Cost, Delivery, People) is displayed with visual signals- often green, and red- showing whether targets are being met, or in need of quick action.
Custom-fit for industry needs: Every industry's demands differ, and some require fewer or additional categories to track, including Inventory (I) or Environment(E). This allows more relevant performance measurement.
Prioritisation of focus areas: The visual board gives more priority to the metrics that need high consideration. For example, for a high-risk work environment, it gives priority to Safety without underestimating other metrics.
Real-time performance tracking: Daily updates of data help the team analyse performance in real-time.
Data analysis: The board captures historical as well as daily data and helps the team make better decisions.
Standard information on a SQDCP Board
When setting up an SQDCP board, including the vital Key Performance Indicators and information under each category is essential. Some most common choices are given below.
➤ Safety
Recognising and managing Safety is the most important factor that determines the workplace environment. The more Safety there is, the more efficient, focused, and engaged the employees become. In addition, companies avoid expensive accidents and regulatory penalties with their higher safety ensuring practices.
The KPIs that track in the safety category are:
Accidents
Injuries
Number of incidents
Safety violations
Close calls
Identified risk
Unsafe work
Days without accidents
Days missed due to safety incidents
➤ Quality
Quality product delivery is the primary goal of manufacturing, and quality tracking through an SQDCP board is intended to generate real-time insights about quality issues and bottlenecks. Through this, the leaders can quickly address the problem through data-driven information.
The quality metrics include:
Production yield
Number of defective items
Customer complaints and claims
Rework data
Continuous Improvement Initiatives
➤ Delivery
This aspect monitors the efficiency and timeliness of product deliveries. It focuses more on meeting the production schedule and serving customer demands. SQDCP here tracks every manufacturing operation from raw materials to the supply chain.
KPIs here include:
On-time, in-full delivery
Lead time
Full order fulfilment
Planned production time vs. actual outcomes
Planned production volumes vs. actual volume
➤ Cost
Tracking and monitoring of the cost of the manufacturing process through the SQDCP board includes analysing the expenditure on raw material, workforce and energy. It aims to control and keep the cost within the budgetary constraints and execute cost-saving measures.
KPIs here include:
Production costs
Deviations from cost projections
Cost of inventory and raw materials
Cost of overtime work
Waste and Scrap Costs
Budget vs. Actuals
Energy and utility costs
Savings initiatives
➤ People
Employee performance on the shop floor, another important factor, is analysed by the SQDCP board by evaluating professional skills, employee knowledge about the organisation and training effectiveness. Understanding how good the employees are helping the organisation to make efforts for employee alignment, labour planning and scheduling, which is essential for growth.
KPIs here include:
Skill development
Training and Education
Overtime
Personal challenges
Turnover
Attendance and Absenteeism
Team Achievements
Benefits of using SQDCP board in your manufacturing process
Increase productivity
Boost efficiency
Increase communication
Improves accountability
Enhance employee engagement
Ensure a proactive approach to problem-solving
Align organisations to foster continuous improvement
Maximise manufacturing efficiency by Integrating SQDCP with Balanced Scorecard
More than a static SQDCP board anchored in one location, a digital SQDCP board can make drastic changes in your manufacturing operations by giving real-time information about your important organisational metrics such as Safety, Quality, Delivery, Cost and People. Apart from OEE (Overall Equipment Effectiveness), the SQDCP dashboard displays a broader context by jumping through additional hoops. The safety metrics aim to create a secure work environment, while quality metrics focus on making high-quality products. Delivery metrics monitor the potential of providing on-time deliveries, Cost metrics control expenses, and people metrics work for employee engagement and well-being.
This visual management board can be integrated with tools that automatically collect data, and Balanced Scorecard software is the most significant among them. The Digital Balance Scorecard is the best tool for connecting several systems, machines, and operators within a manufacturing environment. As a diligent monitoring system, it provides a strategic, integrated approach to managing those metrics. Embracing the advanced approach of integrating your SQCDP metrics with Balanced Scorecard software is not just a strategic advantage—it is an essentiality for manufacturers looking to stay ahead in today's fast-evolving market.
FAQs
1. What is an SQDCP board?
SQDCP board, visualise selected Key Performance Indicators (KPIs) and production metrics related to safety, Quality, Cost, Delivery and People on the factory floor.
2. What does each element of SQDCP represent?
Safety, Quality, Cost, Delivery, and People are the five general performance elements represented in the SQDCP board that elucidate optimal manufacturing operations.
3. What are the benefits of using an SQDCP Board?
Increase productivity
Boost efficiency
Increase communication
Improves accountability
Enhance employee engagement
Ensure a proactive approach to problem-solving
Align organisations to foster continuous improvement
4. What are the industries where SQDCP boards are used?
SQDCP Boards can be adapted to many industries, including manufacturing, logistics, healthcare and more.
5. Is it Sqcdp or Sqdcp?
The two acronyms stand for the same concepts but with different focuses. Both frameworks emphasise the importance of workplace safety, quality, cost-effectiveness, timely delivery, and personnel well-being.
