What does SQDCM stand for?

SQDCM stands for Safety, Quality, Delivery, Cost, and Morale. These are five daily performance areas tracked to improve operations and reduce waste.

What is a SQDCM Board?

An SQDCM Board shows key daily performance results in one place, helping teams in Lean and shop floor operations track Safety, Quality, Delivery, Cost, and Morale at all-in-one places. This operational performance board serves as a central communication hub for teams, providing real-time visibility into performance targets and progress. The board typically includes colour-coded indicators to track accident rates, defect counts, on-time delivery, production costs, and employee satisfaction. This visual management board facilitates continuous improvement efforts by fostering transparency, accountability, and collaboration among team members, ultimately driving operational excellence and productivity

An example of SQDCM visual management dashboard or Diagram

Make your SQDCM Board digital

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Understanding SQDCM Metrics: Driving Continuous Improvement

Safety: An SQDCM board can track safety to ensure a comprehensive approach to monitoring and improving workplace safety. Organisations can effectively analyse how the safety metrics perform to prioritise risk mitigation and drive continuous improvement initiatives.

Read How SQDCM Enhances Organisational Safety Goals? , for more insights.

Quality: Manufacturers can use an SQDCM digital system to analyse quality metrics to gain insights into product quality, process efficiency and customer satisfaction. Tracking metrics like defect rates, customer complaints, and adherence to standards enhances the overall quality of processes.

Delivery: Delivery metrics within the SQDCM visual management board comprehensively evaluate a manufacturer's supply chain efficiency and reliability. These metrics encompass on-time delivery, lead time, and order fulfilment, offering insights into the timeliness and effectiveness of delivering products to customers.

Cost: Cost is a key metric in the SQDCM huddle board used by organisations to align business activities with their vision and strategy. Cost as a metric in this perspective helps measure and manage the efficiency of business processes, control expenses, and optimise resource allocation. It allows organisations to ensure profitability and sustainability.

Morale: Morale, as a metric in the SQDCM digital solution, reflects job satisfaction, teamwork, employee retention, and organisational culture. Declines in morale indicators can serve as early warning signs of potential organisational issues, such as leadership challenges, cultural issues, or inadequate support for employee development.

Why are SQDCM Boards important?

SQDCM board is an essential visual management tool in lean manufacturing and other industries. They provide a concise snapshot of performance in critical areas—Safety, Quality, Delivery, Cost, and Morale—promoting transparency, accountability, and continuous improvement. Through clear visualisation and real-time tracking, SQDCM boards enable teams to identify enhancement areas, make data-driven decisions, and foster a culture of excellence and efficiency.

SQDCM template- what is it and how to use?

An SQDCM board template is a ready-to-use tool for tracking Safety, Quality, Delivery, Cost, and Morale in one organised view. Instead of creating a board from scratch, this template gives teams a structured layout where they can simply fill in their own metrics, issues, and actions. Using a pre-designed template saves time, ensures consistency, and keeps everyone focused on the right priorities.

A good SQDCM template should include:

Clear headings for each category (Safety, Quality, Delivery, Cost, Morale)
KPIs or targets for each category
Daily/weekly performance data fields
Visual indicators (e.g., colour codes for status)
Notes or comments section for issues and countermeasures
Responsible person or owner for each action

Download your SQDCM Board template (Excel/PDF)

SQDCM Excel template vs SQDCM Dashboard

Here you get the answer of “what is the difference between SQDCM Excel and SQDCM Dashboard.”

Feature	Excel Template	Digital Dashboard
Data Entry	Manual	Automatic
Updates	Daily	Real-time
Trends	Harder to track	Clear visual trends
Sharing	Email/manual	Shared live with team
Best for	Small teams	Growing operations

How are SQDCM Boards used in lean manufacturing?

In lean manufacturing, SQDCM boards are crucial visual management tools for tracking and improving performance across Safety, Quality, Delivery, Cost, and Morale. Teams use SQDCM boards to display key metrics, such as safety incident reports, defect rates, delivery schedules, production costs, and morale indicators. During daily stand-up meetings or huddles, team members review the information on the boards, discuss progress, identify enhancement areas and develop action plans to address issues promptly. SQDCM boards facilitate data-driven decision-making and foster a continuous improvement culture by providing real-time visibility into performance metrics. These boards help teams align their efforts with organisational goals in Lean manufacturing environments.

What data does an SQDCM board display?

A SQDCM board typically displays a range of Key Performance Indicators (KPIs) related to Safety, Quality, Delivery, Cost, and Morale. KPIs under each metric analyses different aspects of operational performance, aiding in decision-making and continuous improvement efforts across various organisational functions or operations.

Safety metrics examples - Safety Incident Reports, Near-miss Occurrences, and Safety Training Completion Rates.

Quality metrics examples - Defect rates, Customer Complaints, and Adherence to Quality Standards.

Delivery metrics examples - On-time Delivery Rates, Lead Times, and Order Fulfilment Status.

Cost metrics examples - Cost of Raw Materials, Production Costs, Energy Consumption Costs, and Recycling Costs.

Morale metrics examples - Employee Satisfaction, Survey Results, and Turnover Rates.

Learn How to measure SQDCM for better organisational performance.

How does a SQDCM Board work?

Implementing a digital SQDCM board in an organisation involves several steps to ensure their effectiveness and successful integration into daily production processes:

Select the right visual management board: Research and select the best visual management solution that aligns with your organisational goals. Look for features such as customisable dashboards, real-time data updates, report generation and user-friendly interfaces.

Define the metrics and KPIs: Have a proper idea of the arrangement of metrics and other visual elements on your visual management board. For a SQDCM board, the metrics are Safety, Quality, Delivery, Cost and Morale. These metrics can be customised to form a SQDCP board, SQDCL board or SQDC board as per your industrial requirements.

Specify the KPIs tracked under each SQDCP metrics: Choose the Key Performance Indicators to be tracked under each metrics which relates to a specific strategic goal or improvement that your organisation needs to achieve.

Set the frequency for the SQDCM board: Conduct regular review meetings or huddles where teams analyse the data displayed on the SQDCM board. The frequency set for analysing your SQDCM board solely depends on the size and nature of your industrial operations.

Update and monitor your SQDCM board: Continuously monitor the effectiveness of SQDCM boards in driving performance improvements and achieving organisational goals. Evaluate the relevance of SQDCM metrics, board template, and communication strategies to make adjustments as needed and ensure alignment with strategic objectives.

Integrate with relevant platforms: Integrate with the systems for collecting, updating, and reporting data for each KPI on the SQDCM board. SQDCM boards support automation and integration with production management systems, quality systems and maintenance management systems, saving time and preventing data redundancy.

Analyse the root causes of unattained goals:

How to customise an SQDCM board for your process

The SQDCM board serves as a versatile solution across several industries, including manufacturing, automotive, healthcare, pharmaceuticals, energy, electronics, aviation, marine vessels, banking, service sectors and beyond.

To choose the right SQDCM template for your industry, follow these steps:

Assess Industry/ Process Requirements: Understand the specific needs, priorities, and challenges of the industries or processes where the SQDCM board will be implemented.

Select a Visual Management Board and Tailor Metrics to Industry or Process Needs: Customise the selection of metrics to align with the unique characteristics and requirements of the industry or process. When defining metrics, consider safety protocols, quality standards, production lead times, cost structures, and employee morale indicators.

Design Board Layout and Visual Elements: Design the layout of the SQDCM Board to accommodate industry-specific information and visual elements. Use colour-coded sections and graphs to convey information effectively and enhance visual clarity.

Incorporate Industry-Specific Best Practices: Research industry-specific best practices and performance improvement methodologies relevant to safety, quality, delivery, cost, and morale. Incorporate elements of lean manufacturing, Six Sigma, Total Quality Management (TQM), or other relevant frameworks into the design of the SQDCM Board.

Customise Data Collection and Reporting Processes: Develop tailored data collection processes and systems to capture relevant performance metrics accurately and efficiently. Implement standardised reporting formats and intervals to ensure timely dissemination of performance data to stakeholders.

How do SQDCM Boards support continuous improvement initiatives?

SQDCM (Safety, Quality, Delivery, Cost, Morale) boards support continuous improvement initiatives by visually representing Key Performance Indicators, fostering accountability, and facilitating real-time monitoring of process efficiency. Through clear metrics and visual cues, SQDCM boards enable teams to identify improvement areas, track progress towards goals, and make timely corrections based on action plans. By promoting transparency and collaboration, SQDCM boards empower employees to contribute ideas, address issues proactively, and drive meaningful change. Moreover, the regular review of SQDCM board data encourages continuous learning and adaptation culture, leading to sustained improvements in safety, quality, delivery times, cost efficiency, and employee morale across all levels of the organisation.

How do SQDCM Boards contribute to Process Improvement?

SQDCM boards play a pivotal role in driving process improvement by visually representing Key Performance Indicators, fostering accountability, and enabling real-time monitoring of process efficiency. By establishing clear metrics for Safety, Quality, Delivery, Cost, and Morale, SQDCM boards drive process improvement. A SQDCM board benefits for process enhancement in many ways:

Identification of improvement areas
Tracking progress toward goals
Timely corrective actions
Regular review and analysis of data
Identification of trends and root causes of inefficiencies
Continuous improvement culture fostered
Enhanced operational performance
Improved cost efficiency
Increased employee engagement

Why should you track and measure each metric in a SQDCM Board?

In a SQDCM (Safety, Quality, Delivery, Cost, Morale) board, tracking and measuring each metric is crucial for several reasons. Each metric on the SQDCM board shows the organisation's performance in key areas essential for operational excellence and continuous improvement. By tracking and measuring these metrics, businesses can set targets, identify trends, and implement corrective actions to enhance overall efficiency, productivity, and employee satisfaction while ensuring alignment with strategic goals.

➤ Safety

Incidence Rate: Measure the frequency of safety incidents within a defined period.

Near Misses: Track instances where accidents almost occurred, providing insight into potential hazards.

Compliance: Ensure adherence to safety regulations and protocols to prevent workplace injuries

Your questions, answered!

What makes the countermeasure or “action plan” section of SQDCM board critical?

The best SQDCM board is one that’s customisable, easy to update, and accessible to your entire team. Data Point’s Digital SQDCM Boards let you tailor metrics, layouts, and visuals to match your operational goals—making it a perfect fit for both manufacturing and service industries.

How can teams measure “Morale” effectively on the SQDCM Board?

Beyond surveys and turnover data, consider daily pulse checks like attendance, peer shout-outs, or quick sentiment polls to capture real-time morale insights, making it actionable in your SQDCM reviews.

Can the SQDCM Board be adapted for non-manufacturing environments?

Absolutely. SQDCM is versatile—adapt safety, quality, delivery, cost, and morale metrics to suit industries like healthcare, logistics, or service sectors with tailored KPIs and terminology.

What makes the countermeasure or “action plan” section critical?

The heart of the board isn’t just red or green statuses—it’s the countermeasures. These drive root-cause analysis and long-term improvements, not just surface visibility.

How often should the SQDCM Board be reviewed and updated?

It’s most effective when treated as a daily management tool—reviewed during daily huddles or Gemba walks—keeping updates timely and discussions focused on current performance.

How does SQDCM support continuous improvement culture?

By promoting transparency, accountability, and visual daily tracking on Safety, Quality, Delivery, Cost, and Morale, teams can rapidly identify trends, waste, and improvement opportunities.

Can I adapt the SQDCM board to different teams or locations?

Yes. Data Point’s Digital SQDCM Boards are fully adaptable—you can create variations for departments, shifts, or sites while maintaining a consistent overall framework for performance tracking.

What’s the advantage of going digital with SQDCM boards?

A digital board like Data Point’s offers real-time updates, remote access, and easy customisation. It eliminates manual updates, speeds up decision-making, and keeps all stakeholders aligned wherever they are.

What role does technology play in enhancing the effectiveness of SQDCM Boards?

Technology, especially through digital SQDCM Boards, helps streamline data collection, automate reporting, and ensure real-time visibility of key metrics. It also allows for integration with other software systems, enabling data-driven decisions.

How can SQDCM Boards help in achieving sustainability goals?

By tracking metrics related to cost, quality, and delivery, SQDCM Boards help organisations identify inefficiencies and wastage, which can be addressed to achieve sustainability goals. They also allow for monitoring compliance with environmental and safety regulations.

Are there specific industries where SQDCM Boards are most effective?

While SQDCM Boards are most commonly used in manufacturing, they are highly effective across various industries like healthcare, construction, logistics, and energy. Each industry can adapt the board to focus on its critical operational metrics.

How do SQDCM Boards help in visualising complex data?

SQDCM Boards present data in a simplified, visual format, making it easier to understand complex metrics at a glance. This can include graphs, charts, and color-coded indicators that show performance against targets.

Are there variations of SQDCM, and how do they differ?

Yes. While SQDCM stands for Safety, Quality, Delivery, Cost, and Morale, other variations are also used depending on organisational focus. Examples include: SQDC – Safety, Quality, Delivery, Cost (without Morale) SQDCME – Safety, Quality, Delivery, Cost, Morale, Environment SQDCP – Safety, Quality, Delivery, Cost, People SQDIP – Safety, Quality, Delivery, Inventory, Productivity These frameworks follow the same principle of tracking key performance categories visually, but the metrics are adapted to suit specific business priorities or industry requirements.

SQDCM visual management board: Definition, example and how to use

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Step 1

List the five categories: Include Safety, Quality, Delivery, Cost, and Morale as your main performance areas.

Step 2

Set KPIs or targets– Define measurable goals for each category.

Step 3

Create your board in Excel (optional) –

Make a table with columns for Date, each category, and a Notes/Countermeasures section.
Add rows for each day or shift.
Apply colour coding (green/yellow/red) to show performance status.

Step 4

Create your board digitally (optional) –

Select a platform that supports custom categories, colour indicators, and shared team access.
Add your KPIs and sections for data entry and countermeasures.

Step 5

Record results daily – Update data for each category at the end of every shift or day.

Step 6

Review with your team – Discuss performance, identify variances, and agree on action plans to address issues.

Discuss the root causes, identify improvement opportunities, and develop action plans to address challenges or gaps. The action plans along with respective graphs supporting the same are shown in the SQDCM board providing an overall visibility into your industrial operations.

Record the corrective actions: Plan for the corrective actions that must be taken, including a detailed description of the issue, its root cause analysis, and proposed solutions. Assign responsibilities to team members for each corrective action, ensuring accountability and timely execution. Specify the deadline for completing each corrective action, setting clear expectations for turnaround time and follow-up.

Use dashboards and generate reports: Use the interactive dashboards to track Key Performance Indicators (KPIs), including Safety, Quality, Delivery, Cost, and Morale metrics. Use real-time data visualisation tools to display KPIs on the SQDCM board, providing clear insights into performance trends and areas for improvement. Ensure performance reports are easily accessible and understandable to all team members, promoting informed decision-making and accountability.

Adjust the metrics and continuously improve: Analyse performance trends and identify areas where metrics may fail to reflect actual performance or drive desired behaviours. Encourage continuous improvement by fostering open communication, sharing best practices, and recognising achievements related to performance metrics. Empower employees at all levels to contribute ideas for enhancing performance and driving positive change.

Physical SQDCM Boards	Digital SQDCM Boards
▶ Physical visual management boards are mounted on walls or placed in designated areas	▶ Digital SQDCM boards exist in virtual formats accessible from anywhere using any device.
▶ Manual data entry using markers, sticky notes, or other physical means	▶ Data entry is automated, with options for real-time updates and integration with other data management systems.
▶ Limited customisation options, usually confined to physical layout and markers	▶ Highly customisable with options for selecting dynamic templates, KPIs, colour codings, and setting visual cues.
▶ Limited analytical capabilities, primarily visual representations of data	▶ Offers advanced data analysis tools such as root cause analysis, trend graphs, and performance dashboards to create performance reports.
▶ May lack integration capabilities with other digital systems and tools	▶ Can be integrated with digital platforms or third-party applications such as ERP, MES, MIS and IoT devices.

Let's consider an example of Key Performance Indicators (KPIs) tracked and measured under different metrics on a SQDCM board in a manufacturing plant for June 2023 to achieve operational excellence.

In this visual management board, you can see Safety, Quality, Delivery, Cost and Morale as metrics that can be customised or changed based on your industrial requirements. The image displays the events that have occurred under Safety, Quality, Delivery, Cost, and Morale in June 2023. Here, S, Q and D metrics are measured based on shifts- A, B, C and D, whereas C and M metrics are not based on shifts.

Safety: In the Safety metric, accidents and near misses were selected as Key Performance Indicators to be tracked. 10 accidents and 21 near misses were tracked under the Safety metric in shift C. In shifts A and B, the actual goal of accidents was considered 10 or less, but the actual goal was not met under certain circumstances, and a high accident rate was observed. Here, the actual goal was not met and is indicated in Red. A reduced accident rate shows a safe working environment.
Quality: The quality metric tracked the scrap rate, and 99 observable situations showed inefficiency or scrap production in shift C. The actual goal of reduced scrap rate was not met, and a 47% deviation was observed in shifts A and B. Since the KPI is underperforming, it is indicated in Red.
Delivery: The delivery metric tracked produced output as the KPI, and 1197 products were successfully delivered during Shift C. Shifts A and B both met their KPI goals, achieving an impressive result of 99.9% and 75% respectively. So it is indicated in Green colour.
Cost: The cost metric isn't tracked based on shifts and shows an overall performance of the KPIs. Here, Total Sales and Order Arrears are the KPIs that are tracked and shown in this board. The board data clearly shows that Total Sales is underperforming and hasn't met the goal. It is indicated in Red that the KPI is not performing as expected. Order Arrears performed well during the first half of the month and shows 50% more than expected rate. So, it is marked as green as the KPI attained the goal.
Morale: Like the Cost metric, Morale also shows the overall performance of the KPIs as it isn't tracked based on shifts. Here Turnover Rate, Absenteeism Rate and Employee Net Promoter Score (NPS) are tracked as KPIs. All the KPIs under the Morale metric are indicated in green as they perform well and show a positive increase over actual goals. By tracking and analysing these morale metrics on the SQDCM board, organisations can proactively address issues impacting employee morale, fostering a supportive work environment for employees, and drive continuous improvement.

SQDCM visual management board: Definition, example and how to use

Contents

What does SQDCM stand for?

What is a SQDCM Board?

An example of SQDCM visual management dashboard or Diagram

Make your SQDCM Board digital

Understanding SQDCM Metrics: Driving Continuous Improvement

Why are SQDCM Boards important?

SQDCM template- what is it and how to use?

Download your SQDCM Board template (Excel/PDF)

SQDCM Excel template vs SQDCM Dashboard

How are SQDCM Boards used in lean manufacturing?

What data does an SQDCM board display?

How does a SQDCM Board work?

How to customise an SQDCM board for your process

How do SQDCM Boards support continuous improvement initiatives?

How do SQDCM Boards contribute to Process Improvement?

Why should you track and measure each metric in a SQDCM Board?

Your questions, answered!

What makes the countermeasure or “action plan” section of SQDCM board critical?

How can teams measure “Morale” effectively on the SQDCM Board?

Can the SQDCM Board be adapted for non-manufacturing environments?

What makes the countermeasure or “action plan” section critical?

How often should the SQDCM Board be reviewed and updated?

How does SQDCM support continuous improvement culture?

Can I adapt the SQDCM board to different teams or locations?

What’s the advantage of going digital with SQDCM boards?

What role does technology play in enhancing the effectiveness of SQDCM Boards?

How can SQDCM Boards help in achieving sustainability goals?

Are there specific industries where SQDCM Boards are most effective?

How do SQDCM Boards help in visualising complex data?

Are there variations of SQDCM, and how do they differ?

SQDCM visual management board: Definition, example and how to use

Explore our latest insights

Benefits of using SQDCM board

How to create an SQDCM Board

Enhance your operational efficiency with SQDCM

Turn SQDCM Data into Profit

Advantages of digital SQDCM Boards over physical SQDCM Boards

Best practices for using SQDCM Boards

SQDCM Example

Drive continuous improvement with real-time SQDCM insights