How to track Kanban Metrics and KPIs

With the potential to drastically improve workflow efficiency and ongoing operations, the Kanban methodology can provide impressive results for businesses when implemented effectively. There are certain metrics and key performance indicators (KPIs) which should be regularly analyzed to keep track of the success, so we have pulled together a selection of the most useful pieces of data you should be utilizing.

Return on investment (ROI)

ROI will look different for many business types and this may be measured based on outcomes such as time saved, customer satisfaction, or increased production. Whatever the goal, this should be established before Kanban processes are carried out.

Cycle or lead times

Cycle time measures the time taken from the moment a task is begun until it's in the hands of the customer. Similarly, lead time incorporates the entire process, including the time taken for the request to be actioned upon customer order. Tracking these metrics helps to identify any bottlenecks in the process so the times can be minimized.

Customer satisfaction rate

Throughout the Kanban process, customer feedback is hugely valuable as it gives insight into whether the changes being made are benefiting the customer and whether expectations are being met. Although it can be harder to quantitate, customer satisfaction surveys are a powerful tool to use.

Cumulative flow 

A cumulative flow diagram (CFD) visually portrays the progress of a project, breaking down each task so the time taken at each stage can be monitored and analyzed. This process helps identify any holdups quickly so they can be acted upon, providing the opportunity to make estimated times more accurate going forward.

Escalated items

For items which may require a more specialized team or additional resources, these should be flagged as escalated items to draw attention to them and avoid holdups. By keeping an eye on these, issues with delays can be prevented and more accurate estimations for materials and manpower can be produced.

Workforce efficiency

Although this is another insight which is considered difficult to track, it is important to optimize employee performance and improve overall productivity. Using metrics to produce calculations, such as the percentage of unproductive time spent on admin or maintenance, will help identify areas for improvement.

Ongoing tasks

If a task is currently on the backburner due to a lack of resources or waiting on dependencies, it is hindering workflow and clogging up systems. Keeping record of the number of ongoing tasks will help identify the causes and prevent them from reoccurring.

Employee satisfaction

A high staff turnover can have a huge impact on the productivity of a business so maintaining a happy workforce is important for Kanban implementation. Employee satisfaction can be measured through both retention rates and direct feedback from employees themselves.