In an increasingly competitive environment, it is crucial for manufacturing companies to create transparency about the processes on the shop floor in order to be able to make informed decisions quickly.
A proven approach that provides clear guidance for managers and teams is SQCDP.
In just a few minutes, you will gain an overview of what the term stands for, how SQCDP is applied, and what benefits it offers.
Image: Floating dashboards in a production hall.
SQCDP boards are visual management tools for daily management at the point of value creation. They bundle key performance dimensions (safety, quality, cost, delivery, people) on a standardized interface, structure 15-minute shop floor meetings, and embed problem solving in day-to-day business. When implemented correctly, they increase transparency, accountability, and responsiveness.
Green means “OK”
Yellow signals “action required”
Red indicates “critical”
In addition, many boards contain additional key figures to make developments even clearer. The respective teams independently define which KPIs are relevant for their process and which target values they want to achieve.
This dimension covers all safety-related aspects of manufacturing. Key figures on accidents, near misses, or safety-critical observations help to identify risks at an early stage and eliminate them consistently. The goal is a working environment free of avoidable hazards.
Quality is a key driver of customer satisfaction. The board visualizes deviations and quality indicators such as scrap rate, first-pass yield, or complaints, thereby laying the foundation for rapid intervention.
This pillar focuses on all relevant cost factors in production. Material costs, energy consumption, and deviations from cost forecasts are made transparent so that targeted countermeasures can be taken.
The Delivery section shows delivery performance, such as delivery reliability, throughput times, and backlogs. Teams can quickly identify where bottlenecks are occurring and which levers are effective.
This dimension highlights employee workload and availability. Key figures such as overtime or absenteeism show when capacities are becoming scarce and where support is needed.
The introduction of SQCDP follows a clear, proven process that is designed to integrate transparency and accountability into daily operations in a sustainable manner. First, companies define the relevant KPIs for each dimension, always with an eye to existing processes, regulatory requirements, and established standards at the plant. These key figures form the foundation on which daily evaluation is based.
The next step is to install the board physically or digitally at the point of value creation. It is crucial that it is visible and accessible to all employees. At the same time, routines for the daily shop floor meetings are established: time, duration, participants, and escalation paths. The teams fill in the fields on the board at the end of each working day and visualize the status using the traffic light system. Deviations are documented, responsibilities are clearly assigned, and measures are tracked in a binding manner.
This approach is deliberately pragmatic. Added value is not created through theoretical concepts, but through daily discipline, reliable processes, and continuous adjustments based on clear priorities. Over time, teams develop a common understanding of process stability, bottlenecks, and optimization potential, and systematically implement these insights.
SQCDP creates a consistent management and control logic that is directly reflected in operational performance. Transparency regarding safety-related facts, quality deviations, delivery performance, cost development, and employee workload enables an objective assessment of day-to-day business. Decisions are made faster and based on facts, which significantly increases response speed.
In addition, the method promotes accountability. Since teams maintain and evaluate their own KPIs, awareness of cause-and-effect relationships increases. Problems are identified earlier and dealt with in a structured manner, rather than only becoming apparent after the fact. This has a positive effect on productivity, quality, and adherence to deadlines.
Another advantage lies in standardization across departments. When multiple lines or plants operate according to the same principles, a uniform control model emerges that facilitates comparisons and enables benchmarks. This consistency strengthens operational excellence, a value that has proven itself in traditional manufacturing organizations for decades.
With increasing digitalization, the electronic mapping of SQCDP offers significant efficiency gains. Digital boards automate data collection and updating, reduce manual effort, and minimize sources of error. Key figures flow directly from existing systems such as MES into the daily overview. This ensures real-time transparency and increases the quality of decisions.
At the same time, digital SQCDP opens up new possibilities: trends are automatically identified, deviations are immediately flagged, and measures are tracked digitally. Dashboards can be used across locations, allowing for uniform control in larger production networks, while the basic idea remains unchanged. Especially in industrial environments, where traditional processes are increasingly being supplemented by data-driven methods, digital SQCDP fits seamlessly into existing structures. Companies benefit from the robustness of the classic model and, at the same time, from the speed of modern digitalization. It’s a combination that ensures long-term competitiveness.
With a modern MES, PDA, or MDA, you can create the database needed to ensure that methods such as SQCDP really take effect.
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