Last updated on : February 23, 2026

13 min read

What is SQDIC framework?

SQDIC is a performance management framework used to track and improve operational health across Safety, Quality, Delivery, Inventory, and Cost. It helps team focus on the right priorities during daily reviews, allowing faster issue identification, clearer accountability, and more consistent decision-making across the industry.

Sample of an SQDIC board

An overview of SQDIC framework: How does it work?

SQDCI originated from the SQDC framework, which is a core element of Lean manufacturing. Over time, Inventory was added as a fifth pillar to mirror growing challenges around stock visibility, cash flow, and supply chain stability – evolving SQDC into SQDCI for modern operational environments.

See SQDIC in action with LTS Data Point

Quick guide: SQDIC vs. SQDIP

Aspect	SQDIC	SQDIP
Full form	Safety, Quality, Delivery, Inventory, Cost	Safety, Quality, Delivery, Inventory, Productivity
Primary focus	End-to-end operational control with cost and inventory visibility	Operational performance with strong emphasis on productivity
Origin	Evolved from the classic SQDC framework	Variation of SQDC with productivity added
Cost perspective	Explicitly tracked as a core pillar	Often reflected indirectly through productivity metrics
Inventory focus	Dedicated pillar to manage stock, WIP, and flow	Inventory tracked, but balanced with productivity output
Best suited for	Organisations focused on cost control, inventory optimisation, and financial discipline	Environments prioritising throughput, efficiency, and output improvement
Common use cases	Manufacturing, supply chain, operations with inventory complexity	Production lines, high-volume operations, efficiency-driven teams
Board usage	Daily management, tiered huddles, KPI reviews	Daily huddles, performance tracking, productivity reviews

What are SQDIC shopfloor metrics?

SQDIC metrics are daily, operational indicators used on the shopfloor to monitor performance, spot issues early, and support rapid decision-making during huddles and reviews.

Below are commonly tracked examples for each SQDIC pillar:

Safety

Recordable incidents
Near-miss reports
Unsafe acts observed
Unsafe conditions logged
Days since last incident
First-aid cases
Lost Time Injury Frequency Rate (LTIFR)
Safety audit findings
PPE non-compliance incidents
Toolbox talk completion
Hazard reports raised
Safety corrective actions overdue

Quality

Defect rate
First Pass Yield (FPY)
Scrap quantity
Rework hours
Customer complaints
Internal quality alerts
Right-first-time percentage
Process deviations
Quality audit findings
Non-conformance count
Cost of poor quality (COPQ)
Returned goods

Delivery

SQDIC in lean daily management

SQDIC is used a lean daily management framework to assess performance, detect problems early, and drive timely action at the shopfloor and leadership levels.

In practice, teams evaluate SQDIC metrics during daily huddles or production meetings, typically covering:

Yesterday's performance against targets
Today’s risks and priorities
Open issues, actions, and owners
Escalations where targets are missed

The framework makes sure discussions follow a consistent, structured flow – beginning with safety and quality before moving onto delivery, inventory, and cost. This aids teams concentrate on root causes rather than symptoms and assists faster decision-making.

SQDIC is commonly applied across tiered meetings, permitting alignment from operators to supervisors and senior leadership through a shared set of performance indicators.

What is an SQDIC board?

An SQDIC board is a visual management tool used to monitor and review Safety, Quality, Delivery, Inventory, and Cost metrics at both shopfloor and operational levels. It offers teams with a clear, shared view of daily performance, assisting them quickly identify problems, prioritise actions, and drive continuous improvement.

SQDCI boards are commonly used in daily huddles, production meetings, and tiered management reviews, allowing quicker decision-making and consistent performance tracking across teams.

Challenges and limitations in traditional paper-based SQDIC

Traditional SQDIC tracking using whiteboards, spreadsheets, or paper charts creates several operational challenges and limitations.

Let's explore them one-by-one.

Challenges of paper-based SQDIC boards

Manual data updates:

What is a digital SQDIC board?

A digital SQDIC board is an electronic version of a traditional SQDCI board used to track its core metrics in real time.

Instead of manual updates, electronic SQDIC boards automatically pull data from systems, standardise KPIs across teams, and give instant visibility into performance. They are commonly used in daily huddles, tiered meetings, and operational reviews to support faster decision-making and systematic problem escalation.

Digital SQDCI boards enhance precision, consistency, and accountability while allowing teams to respond quickly to problems as they arise.

Benefits of digital SQDIC boards

A digital SQDIC board refines how teams observe, review, and act on performance by replacing manual, static updates with live visibility.

Key benefits include:

Live data visibility across Safety, Quality, Delivery, Inventory, and Cost
Faster spotting and escalation of issues during daily huddles
Standardised KPIs across teams, lines, and sites
Reduced manual effort compared to paper boards and spreadsheets
Better decision-making through trends, history, and performance insights

Which industries can make use of digital SQDIC boards?

Digital SQDIC boards are used across organisations where daily performance visibility, operational control, and continuous improvement are crucial.

Why SQDIC is a powerful visual management framework

SQDIC brings structure and visibility to daily performance management by organising critical metrics into clear, prioritised framework. By showing Safety, Quality, Delivery, Inventory, and Cost in one place, teams can quickly spot gaps, align on priorities, and take action before problems escalate.

Used consistently, SQDIC supports faster decision-making, stronger accountability tracking, and a shared understanding of performance across all functional levels.

Key features of the SQDIC framework

Safety-first performance visibility: Ensures safety is always assessed before operational KPIs, reinforcing people-first culture.
Clear daily performance priorities: Organises what teams review every day, minimising noise and emphasising on what matters most.
Simple, visual metric tracking: Uses clear, visual indicators that are easy to understand at all industrial levels.
Supports daily management and huddles: Fits naturally into daily production meetings and tiered reviews.
Drives faster issue spotting: Makes deviations visible early, enabling quicker response and escalation.
Inspires accountability and ownership: Assigns clear responsibility for metrics and actions.
Aligns shopfloor execution with business goals: Links frontline performance to delivery, cost, and inventory outcomes.
Scales across teams and sites: Can be standardised across lines, departments, and locations.

How to track and customise SQDIC metrics using a digital system

A digital SQDIC system allows teams to monitor Safety, Quality, Delivery, Inventory, and Cost metrics live, replacing manual updates and disconnected spreadsheets.

With digital monitoring, data can be:

Captured automatically from operational systems or entered at source
Updated in real time across teams and shifts
Standardised to verify consistent metric definitions
Visualised clearly for daily evaluations and escalation

Customisation enables companies to:

Choose relevant SQDIC metrics based on role, function, or tier
Mould thresholds, targets, and alerts for quick issue detection
Tailor dashboards for operators, supervisors, and leadership
Align visual layouts with existing daily management routines

This combination of live tracking and flexible customisation ensures SQDIC remains actionable, scalable, and aligned with how teams actually work.

Tier-based use of SQDIC

SQDCI is commonly used in a tiered daily management structure, making sure problems are evaluated at the right level and escalated quickly when needed.

Tier 1 – Team or Shopfloor level

Used by operators and frontline teams during daily huddles.

Reviews live SQDIC metrics for the day or shift
Spotlights immediate safety risks, quality issues, or delivery blockers
Priorities short-term actions within the team’s control
Escalates unresolved issues to Tier 2

Tier 2 – Department or area level

Used by supervisors and middle management.

Digital SQDIC boards customised for your needs by LTS Data Point

Digital SQDIC boards by LTS Data Point assist industries move beyond static reporting to live, action-driven performance management. Designed for daily use on the shopfloor and at leadership levels, the platform makes SQDCI visible, consistent, easy to act on.

How LTS Data Point reinforces SQDIC execution

Live SQDIC dashboards: Automatically monitor Safety, Quality, Delivery, Inventory, and Cost metrics without manual updates or spreadsheets.
Single source of truth: Standardised SQDIC definitions and KPIs across teams, lines, and sites confirm alignment and clarity.
Action-focused daily management: Record problems, allot ownership, monitor actions, and follow up directly from SQDIC boards.
Tier-based visibility: Endlessly roll up SQDIC performance from Tier 1 teams to Tier 2 and Tier 3 leadership reviews.
Customisable to your operation: Create SQDIC metrics, thresholds, and visuals to match your processes and priorities.
Faster escalation, better decisions: Missed targets and risks are instantly visible, allowing quicker response and problem-solving.

With LTS Data Point, SQDIC becomes more than a framework – it becomes a daily habit that drives accountability, transparency, and continuous improvement.

Case study: How SQDIC drives real results in different sectors

Let's look at real life examples of industries using LTS Data Point SQDIC boards to transform their operations.

Food and Beverage operations

A food and beverage manufacturer struggled with missed hygiene checks and delayed issue escalation across fast-moving production lines. Safety and quality problems were recorded manually, often evaluated too late, resulting in compliance risks, rework, and occasional delivery delays during peak demand periods.

By introducing LTS Data Point digital SQDIC board, the company centralised safety, quality, delivery, inventory, and cost monitoring into day-to-day SQDCI reviews. Live visibility helped teams surface hygiene deviations early, assign actions immediately, and stabilise inventory flow – enhancing compliance and on-time delivery without increasing operational overhead.

Your questions, answered!

How often should SQDIC metrics be reviewed?

SQDIC metrics are typically reviewed daily at operational level. Some industries also use weekly or monthly roll-ups for trend analysis and leadership reviews.

Who owns SQDIC performance in an organisation?

Ownership is shared. Operators and supervisors own daily updates and actions, while managers and leaders are responsible for escalation, prioritisation, and removing systematic barriers.

How is SQDIC different from traditional KPI reporting?

SQDIC focuses on daily decision-making and action, not just reporting. It spotlights issues early and encourages immediate problem-solving rather than retrospective performance reviews.

Does SQDIC replace other performance frameworks?

No. SQDIC complements broader frameworks such as OKRs, balanced scorecards, or strategic KPIs by translating high-level goals into daily operational focus.

What happens when an SQDIC target is missed?

A missed target triggers discussion, root cause identification, and action planning during daily reviews. Persistent issues are escalated through tiered management levels.

Is it necessary to monitor all five SQDIC pillars from day one?

Not always. Some organisations begin with fewer pillars and expand over time, but mature SQDIC systems eventually track all five to avoid optimising one area at the expense of others.

How long does it take to see results after implementing SQDIC?

Many teams see improvements in visibility and accountability within weeks. Sustained performance improvement typically requires consistent use over several months.

Can SQDIC support regulatory or compliance requirements?

Yes. By providing structured, auditable visibility into safety, quality, and delivery metrics, SQDIC can support compliance efforts, especially in regulated industries.

What skills are required to run effective SQDIC reviews?

Facilitation, basic data literacy, problem-solving, and follow-through are more important than technical expertise. The framework is designed to be simple and visual.

Lack of live updates: Information quickly becomes outdated between meetings.
Restricted accessibility: Data is only visible where the board is physically located.
No integration with systems: Metrics cannot be automatically pulled from MES, ERP, or production systems.
Scalability challenges: Managing SQDCI across multiple lines, plants, or sites become difficult.
Higher risk of data loss: Physical boards and sheets can be erased, damaged, or misplaced.

Manufacturing: Used to monitor shopfloor safety, quality defects, production delivery, cost losses, and inventory levels across lines and plants.
Automotive & auto components: Supports high-volume, high-precision operations with strong focus on safety, quality, delivery adherence, and inventory flow.
Pharmaceuticals & life sciences: Helps track quality compliance, production schedules, deviation management, controlled inventory environments.
Food & beverage: Permits daily monitoring of safety incidents, quality checks, throughput, wastage, and stock freshness.
Logistics & warehousing: Used to manage delivery performance, inventory accuracy, handling safety, equipment quality, and delivery milestones.
Engineering & heavy industry: Supports complex operations with strong focus on safety performance, equipment quality, and delivery milestones.
Electronics & high-tech manufacturing: Aids in controlling defect rates, delivery timelines, cost efficiency, and component inventory.
Process industries (chemicals, energy, metals): Used to maintain operational stability, safety compliance, and inventory balance in continuous operations.

Creates daily performance visibility: Teams can quickly see where targets are met or missed across all five dimensions.
Allows faster issue detection: Deviations are spotted early, before they escalate into larger operational problems.
Supports systematic problem-solving: Issues identified through SQDIC can be logged, tracked, and resolved systematically.
Aligns teams around shared priorities: Everyone works from the same performance framework, minimising silos and confusion.
Balances efficiency with stability: Developments in cost or inventory are made without compromising safety or quality.
Inspires data-driven decisions: Decisions are based on actual performance data rather than assumptions or gut feeling.

Step 1

Define clear objectives for SQDIC

Start by clarifying why you are using SQDCI. Decide whether the focus is on enhancing safety visibility, stabilising delivery, minimising costs, or controlling inventory. Clear intent makes sure the framework supports real operational priorities, not just reporting.

Step 2

Choose relevant metrics for each SQDIC pillar

Select a small number of meaningful metrics under Safety, Quality, Delivery, Inventory, and Cost.

Metrics should be:

Easy to understand
Relevant to daily operations
Practical at team level

Avoid overloading the board with too many KPIs.

Step 3

Assign ownership and accountability

Each SQDIC metric should have a clear owner.

Ownership verifies:

Data is updated consistently
Issues are acknowledged quickly
Actions are followed through

Without ownership, SQDCI becomes a passive dashboard.

Step 4

Integrate SQDIC into daily meetings

SQDIC works best when assessed during:

Daily production meetings
Shift handovers
Tier 1 and Tier 2 huddles

Teams should evaluate yesterday’s performance, today’s risks, and open actions, rather than historical trends alone.

Step 5

Establish escalation and action routines

Define what happens when a metric is off target.

This includes:

Recording issues
Assigning corrective actions
Escalating unresolved problems to the nest tier

SQDCI should drive problem-solving, not just visibility.

Step 6

Standardise and continuously improve

Once the SQDIC structure is stable:

Standardise definitions across teams
Review metrics periodically
Refine based on operational maturity

SQDIC should evolve as functions and focus change.

SQDIC Explained: A Practical Framework for Safety, Quality, Delivery, Inventory, and Cost

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