What does KPI stand for in a Six Sigma context?

In the context of Six Sigma, KPI stands for Key Performance Indicator. KPIs are critical metrics used to evaluate the success of an organization or a specific activity in which it engages. They help in measuring how effectively a company is achieving its key business objectives.

KPIs are vital in Six Sigma because they provide quantifiable measures that can be tracked over time to assess improvement, performance, and progress towards achieving the defined goals. These indicators help teams identify areas that need improvement, track the success of implemented changes, and make informed decisions that align with the organization's strategic objectives.

Utilizing KPIs allows teams to maintain focus on the most important aspects of performance and gives stakeholders a clear picture of how well the processes are functioning within the quality improvement framework of Six Sigma.