Traffic Light Assessment

Traffic Light Assessment
  • 4 MINUTES READ
  • Also known as Traffic Light Rating System.

    Traffic Light Assessment is a rating system for evaluating the performance in relation to predefined goals. It allows to communicate performance information clearly and effectively. It has the advantage of being understood universally as performance results are indicated using the real traffic light colors (red, yellow and green). Good and poor performance can easily be identified which allows to make appropriate decisions to achieve performance excellence. Traffic light systems are widely used in performance management, visual management, and project management.

    Traffic Light Assessment Categories
    Traffic light systems are widely used in performance management, visual management, and project management

    In Performance Management

    Traffic light assessment helps presenting performance information to enhance the decision making process. Results are expressed in terms of colors, where red indicates a performance that is far below target, yellow indicates a performance that is a bit below target, and green indicates a performance that is on target or better than target. Traffic light colors can be applied to performance indicators, trend indicators, variance indicators, graphical charts and dashboards.

    Traffic Light Assessment in Performance Management

    In Visual Management

    Traffic light assessment is very effective in visual management and widely used in factories, warehouses and workshops. For example, an Andon light system uses the traffic light colors to communicate production information on the shop floor. Red indicates a production that has stopped or a line that is down. Yellow typically indicates a production that has slowed down. Green indicates a line that is running smoothly. A Kamishibai board is another visual management example that uses traffic light colors to indicate the progress of activities.

    Traffic Light Assessment in Visual Management
    An Andon light system and a production summary board

    In Project Management

    Traffic light assessment is an effective tool in project management and project risk management. It indicates how well activities and milestones are being achieved and how on track the overall project is progressing. Red indicates an activity that is incomplete. Yellow typically indicates an activity that is partially completed or was completed after due date. Green indicates an activity that was completed on time or ahead of time. There are additional colors that can be used to convey specific information. For example, blue may indicate on hold activities, while magenta may indicate new added or changed activities.

    Traffic Light Assessment in Project Management

    Other Applications

    Traffic light assessment concepts can also be used in several other applications, such as presenting the status of a material or product, and marking inventory levels and reorder triggers. In the food industry for example, traffic light labels can be used to show how much fat, sugar or salt exist in the food products where red means high, yellow means medium, and green means low. Teams may also use them to assess ideas and suggestions where red indicates an idea that is poor or inappropriate, yellow indicates a good idea or an idea that needs to be reviewed, and green indicates an excellent idea.

    Inventory management uses traffic light colors
    Inventory management uses traffic light colors

    Example – Gantt Chart

    This is an example of a Gantt chart that uses the traffic light colors to indicate the status of activities and milestones for a project.

    Traffic Light Assessment Example

    Example – Factory Map

    The following is an example of a map in a factory for the areas which have the most safety incidents that resulted in lost time.

    Traffic Light Assessment Example

    Example – Skills Matrix

    The following is an example of a worksheet that uses the traffic light colors to assess the skills of employees and training needs in a company.

    Traffic Light Assessment Example

    Other Formats

    Do you want to use the slides, poster and infographic in your training courses?

    Traffic Light Assessment Training Materials – $13.65

    – Version 1.0
    – A zip file that contains 3 documents (.PPTX)
    – The source of the 3 files listed above (slides, poster and infographic) in MS PowerPoint format
    – 584 KB

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