PQCDSM is a performance management framework used to monitor Productivity, Quality, Cost, Delivery, Safety, and Morale through daily reviews, visual boards, and operational KPIs.
Last updated on : February 23, 2026
The PQCDSM framework is a performance management approach used in manufacturing and operations to track Productivity, Quality, Cost, Delivery, Safety, and Morale. It is usually applied in daily reviews and visual management boards to observe operational KPIs and identify issues early.
By grouping key metrics into six clear categories, PQCDSM aids teams maintain balanced operational visibility, making sure that output, efficiency, safety, and people-related performance are reviewed together rather than in isolation.

The PQCDSM framework works by organising operational performance into six categories – Productivity, Quality, Cost, Delivery, Safety, and Morale – and evaluating them often through daily or shift-based management routines.
Teams define a small set of operational KPIs under each category and assess them using visual boards or dashboards. Deviations from targets are underlined, discussed briefly, and allotted actions, assisting problems surface early rather than after performance has already declined.
By repeating this review cycle consistently, PQCDSM supports operational visibility, prioritisation, and alignment, verifying teams concentrate on the right problems at the right time.
PQCDSM shopfloor metrics are the KPIs used daily on the shopfloor to track and improve performance across Productivity, Quality, Cost, Delivery, Safety, and Morale. These metrics provide teams simple, practical insight into the health of functions and assist quick decisions during daily management reviews.
Below are commonly tracked examples for each PQCDSM pillar:
Productivity

Quality

Cost

In Lean Daily Management (LDM), the PQCDSM framework is used to organise daily evaluations, visual boards, and team discussions around Productivity, Quality, Cost, Delivery, Safety, and Morale. By integrating PQCDSM into daily routines, teams can:
Usually, each metrics is showed on visual boards or dashboards during daily huddle meetings, allowing teams to see where performance is on track and where immediate action is required. This approach verifies that improvement is continuous, data-driven, and visible to everyone.
A PQCDSM board is a visual management tool used on the shopfloor to display vital operational metrics across the pillars. It offers teams with a live snapshot of performance, spotlighting areas that are on target and those that need immediate action.
PQCDSM boards are typically updated daily during Lean Daily Management routines and serve as central point for team discussions, problem-solving, and alignment. They can be physical boards with charts and indicators or digital dashboards accessible across shifts and locations. The aim is to make metrics visible, reasonable, and accountable at all levels of the industry.

While paper-based PQCDSM boards are simple and familiar to several employees in a company, they also come with several challenges and limitations. Let’s look at these one-by-one.
A digital PQCDSM board is an electronic version of the traditional shopfloor board, designed to monitor these pillar metrics in real time. Unlike paper boards, digital boards enable teams to:
Digital PQCDSM boards are usually used in Lean Daily Management routines to give clear, actionable insights, enhance accountability, and make sure quicker fact-based decision-making on the shopfloor.
PQCDSM is a powerful visual management framework because it converts complex operational documents into simple, visual structure that teams can comprehend and act on daily. By arranging performance into six clear dimensions, PQCDSM allows quicker alignment, better focusing, and more disciplined decision-making on the shopfloor.
PQCDSM framework is commonly used in a tiered daily management structure, making sure issues are assessed at the right level and escalated quickly when required.
Tier 1 – Team or shopfloor level
Digital PQCDSM boards transform the framework from a static reporting tool into a living part of daily management. By moving PQCDSM into a digital environment, industries gain better consistency, trackability, and adaptability across teams and tiers.
LTS Data Point allows teams to design PQCDSM boards that mirror how work actually occurs on the shopfloor, rather than forcing teams to adapt to rigid templates. Boards can be organised around existing review cadences, operational hierarchies, and improvement routines – supporting both standardisation and flexibility.
1. Is PQCDSM suitable only for manufacturing environments?
No. While PQCDSM originated in manufacturing, it is increasingly used in service operations, engineering teams, logistics, and regulated industries where daily performance visibility and structured escalation are crucial.
2. How is PQCDSM different from KPI dashboards?
PQCDSM is not just a dashboard – it is a daily management framework. It pinpoints on short review cycles, visual problem detection, and action ownership rather than periodic performance reporting.
3. Can PQCDSM be customised for non-production teams?
Yes. PQCDSM categories can be adapted to mirror team-specific outcomes, such as service productivity, defect rates, response times, compliance adherence, or team engagement.
4. How often should PQCDSM metrics be reviewed?
PQCDSM metrics are usually reviewed daily at the shopfloor or team level, with summaries and escalations reviewed weekly or monthly at higher tiers.
5. Does PQCDSM replace continuous improvement methods?
No. PQCDSM complements continuous improvement by highlighting where improvement is needed, while improvement methods define how changes are implemented.
6. How long does it take to stabilise PQCDSM usage?
Most organisations see stable usage within 4-8 weeks, once review routines, ownership, and escalation rules are clearly defined.
7. Can PQCDSM support remote or distributed teams?
Yes. Digital PQCDSM boards allow remote visibility, ensuring consistent reviews even when teams operate across shifts, sites, or locations.
8. What role does leadership play in PQCDSM success?
Leadership strengthens PQCDSM by reviewing escalated issues consistently, removing systemic blockers, and avoiding bypassing the tier structure.
9. What are common early warning signs PQCDSM is not working?
Common signs include skipped reviews, delayed updates, unclear ownership, or repeated issues appearing without resolution.
Delivery

Safety

Morale


Digital PQCDSM boards are versatile and can be applied wherever operational performance across Productivity, Quality, Cost, Delivery, Safety, and Morale needs to be observed. Common industries include:
These organisations benefit from live visibility, practical metrics, and continuous improvement routines authorised by digital PQCDSM boards.
Begin by clarifying why PQCDSM is being introduced – whether to upgrade visibility, stabilise performance, or strengthen Lean Daily Management routines. This verifies the framework is used for decision-making, not just reporting.
Choose a small, meaningful set of metrics under Productivity, Quality, Cost, Delivery, Safety, and Morale. Metrics should be practical at shopfloor level, not high-level business KPIs.
Make sure every metric has a clear definition, target, and update frequency. Consistency prevents confusion across shifts, teams, and departments.
Design a clear visual layout that separates each PQCDSM dimension and spotlights deviations. Whether physical or digital, the board should make performance status immediately obvious.
Integrate PQCDSM into daily management meetings or huddles. Evaluations should be short, focused, and centred on deviations rather than explanations.
Each metric should have a clear owner. When deviations happen, actions must be documented, monitored, and reviewed to closure.
Define when and how issues are escalated beyond the team level. PQCDSM works best when unresolved issues flow smoothly to the right level of leadership.
Periodically reassess metrics, targets, and review effectiveness to guarantee PQCDSM continues to support evolving operational priorities.
Tier 2 – Department or area level
Used by supervisors and middle management.
Tier 3 – Leadership or site level
Used by plant leaders and senior management.
Tier-based PQCDSM secures visibility, accountability, and structured escalation, assisting industries move from reactive problem-solving to proactive operational performance management.
Let's look at real life examples of industries using LTS Data Point PQCDSM boards to transform their operations.
An aerospace and defence manufacturer struggled with scattered visibility across productivity, quality, and delivery metrics in highly regulated, low-volume production environments. PQCDSM records were monitored across disconnected systems and manual logs, making it hard to spot emerging risks early. Delayed escalation of problems frequently led to schedule slippages, rework, and increased cost pressure on long-lead components.
By adopting digital PQCDSM boards supported by LTS Data Point, the company brought together productivity, quality, cost, delivery, safety, and morale metrics into organised daily and tier-based reviews. Upgraded transparency aided teams surface deviations earlier, escalate risks with full context, and strengthen accountability – supporting schedule adherence, compliance discipline, and more predictable operational performance.
A textiles and apparel manufacturer faced challenges balancing productivity, quality, and delivery across labour-intensive, fast-changing production lines. PQCDSM metrics were observed manually and reviewed inconsistently, limiting visibility into bottlenecks, absenteeism impacts, and quality defects during peak order cycles. This led to missed delivery commitments and fluctuating production efficiency.
Using LTS Data Point digital PQCDSM execution, teams centralised daily performance tracking across the six dimensions. Digital visibility permitted faster detection of line-level issues, clearer preference during daily reviews, and better coordination across shifts – aiding stabilise output, enhance delivery reliability, and support workforce engagement.