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QHSE Glossary

KPI

Key Performance Indicator — a measurable value that demonstrates how effectively an organisation is achieving its objectives.

KPI

KPI (Key Performance Indicator) is a critical concept in quality, health, safety, and environmental management.

What Is KPI?

A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively an organisation is achieving its key business objectives. In QHSE management, KPIs are divided into leading indicators (proactive measures that predict future performance) and lagging indicators (reactive measures that record past events). Leading indicators include: training completion rates, audit completion rates, safety observation counts, corrective action closure rates, and near miss reporting rates. Lagging indicators include: lost time injury frequency rate (LTIFR), total recordable incident rate (TRIR), customer complaint rates, NCR counts, and cost of quality.

KPI Requirements Under UK Law

ISO 9001:2015 Clause 6.2 requires quality objectives that are measurable. ISO 45001:2018 Clause 6.2.1 requires OH&S objectives that are measurable (or capable of performance evaluation). ISO 14001:2015 Clause 6.2.1 requires environmental objectives that are measurable where practicable. HSE guidance HSG65 recommends monitoring both leading and lagging safety indicators. The balanced scorecard approach (Kaplan & Norton) suggests KPIs across 4 perspectives: financial, customer, internal process, and learning/growth.

Key Components of KPI

  • Leading indicators (proactive)
  • Lagging indicators (reactive)
  • Process KPIs
  • Outcome KPIs
  • Quality KPIs
  • Safety KPIs
  • Environmental KPIs
  • Compliance KPIs

KPI in Practice

A multi-site manufacturer (600 employees, 4 facilities) tracks 35 QHSE KPIs in Q-Hub's dashboard. Their monthly management review covers: LTIFR (target: <1.0, actual: 0.8), safety observation rate (target: >100/month, actual: 142), NCR rate (target: <2%, actual: 1.3%), CAPA on-time closure (target: >90%, actual: 94%), training compliance (target: >95%, actual: 97%), and customer complaint rate (target: <0.5%, actual: 0.3%). KPI thresholds trigger automatic email alerts when performance drops below target — enabling proactive intervention before issues escalate.

How to Manage KPI with Q-Hub

Q-Hub provides comprehensive tools for KPI management. The Reporting And Kpis module handles the core requirements, integrated with document control, audit scheduling, training management, and KPI dashboards to ensure your KPI processes are audit-ready at all times.

Related Terms

Want to see how Q-Hub handles KPI in practice? Book a demo or see pricing.

Related QHSE Terms

  • AS9100 — The aerospace quality management standard, based on ISO 9001 with additional requirements for aviati
  • Audit — A systematic, independent examination of processes, products, or systems to verify compliance with d
  • Bow-Tie Analysis — A visual risk assessment method that maps the causes of an event, the event itself, its consequences
  • CAPA — Corrective and Preventive Action — a systematic approach to investigating root causes of non-conform
  • COSHH — Control of Substances Hazardous to Health — UK regulations requiring employers to control exposure t
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