Traffic Light Assessment is a rating system for evaluating the performance of a process or variable in relation to a goal. It is a good way to communicate information and have the advantage of being universally recognized by everyone.

1. CITOOLKIT
Traffic Light Assessment
From Red to Green: Enhancing Decision-Making with Traffic Light Assessment

2. citoolkit.com
Definition
A rating system for evaluating the performance in relation to predefined goals.
Traffic Light Assessment 2
Performance results are indicated using the real traffic light colors (RED, YELLOW
and GREEN).

3. citoolkit.com
Benefits
Traffic Light Assessment 3
Has the advantage of being understood
universally
Allows to communicate performance
information clearly
Supports decision making
Good and poor performance can easily
be identified

4. citoolkit.com
Applications
Traffic lights systems concepts are widely used in . . .
Traffic Light Assessment 4
Performance
Management
Visual
Management
Project
Management

5. citoolkit.com
In Performance Management
Often used in management review
meetings.
Helps presenting performance
information for decision making
purposes.
Traffic Light Assessment 5

6. citoolkit.com
In Performance Management
Results are expressed in terms of colors . . .
Traffic Light Assessment 6
A performance that is far below from target.
A performance that is a bit below from target.
An expected performance (or better than expected).

7. citoolkit.com
In Performance Management
Traffic light colors can be applied to . . .
Traffic Light Assessment 7
4.4% 3.1% 2.8 %
Performance
indicators
Graphical charts
Trend and variance
indicators
Dashboards

8. citoolkit.com
In Performance Management
Can be applied to . . .
Traffic Light Assessment 8
Quality control reports
Financial reports Marketing reports
Trend reports
Customer satisfaction
reports
Benchmarking reports

9. citoolkit.com
In Performance Management
Can be applied to . . .
Traffic Light Assessment 9
Staff performance
management
Safety audits
Compliance audits Risk assessments
Staff training and
development
Retention analysis and
planning

10. citoolkit.com
In Visual Management
Traffic light assessment is widely used in factories, warehouses and
workshops.
Traffic Light Assessment 10

11. citoolkit.com
In Visual Management
An Andon light system uses the traffic light colors to
communicate production information on the shop
floor.
It helps bringing immediate attention to problems as
they occur.
Traffic Light Assessment 11

12. citoolkit.com
In Visual Management
Information is expressed in terms of colors . . .
Traffic Light Assessment 12
A production that has stopped or a line that is down.
Production has slowed down and immediate attention is required.
Normal production levels and a line that is running smoothly.
A potential quality problem that has been detected or an
operational requirement that is needed (material, tooling, …).

13. citoolkit.com
In Visual Management
A Kamishibai board is another visual management example that uses traffic
light colors to indicate the progress of activities.
Traffic Light Assessment 13
WEEKLY
DAILY

14. citoolkit.com
In Visual Management
The following is a map for the areas which have the most safety incidents
that resulted in lost time.
Traffic Light Assessment 14
10 11 12 13
7
5 6
9
8
1 2 3 4
Zero incidents
1-2 incidents
More than 2 incidents

15. citoolkit.com
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.
Traffic Light Assessment 15

16. citoolkit.com
In Project Management
Project information is expressed in terms of colors . . .
Traffic Light Assessment 16
An activity that is incomplete.
An activity that is partially completed or
was completed after due date.
An activity that has been completed on
time or ahead of time.

17. citoolkit.com
In Project Management
Additional colors can be used to convey specific information.
Traffic Light Assessment 17
Scheduled activities
On hold activities
New added or changed activities

18. citoolkit.com
In Project Management
Gantt chart example:
Traffic Light Assessment 18
Today line
Activity 1
Activity 2
Activity 3
Activity 4
Milestone 1
Activity 5
Activity 6
Activity 7
Activity 8
Milestone 2

19. citoolkit.com
In Project Management
Project Management Applications . . .
Traffic Light Assessment 19
Activity management Risk management
Project tracking
Project 1 33%
Project 3 0%
Project 2 100%
Project KPIs

20. citoolkit.com
Other Applications
Traffic light assessment concepts can be used in several other applications.
Traffic Light Assessment 20
STORAGE BIN 101
MIN
MAX
STORAGE BIN 102
MIN
MAX
Communicating the status of a material or product
Marking inventory levels and reorder triggers

21. citoolkit.com
Other Applications
Traffic light assessment concepts can be used in several other applications.
Traffic Light Assessment 21
In the food industry, traffic light labels can be used to show how much fat, sugar
or salt exist in food products
High
Medium
Low

22. citoolkit.com
Other Applications
Traffic light assessment concepts can be used in several other applications.
Traffic Light Assessment 22
Teams may also use them to assess ideas and suggestions
An idea that is poor or inappropriate.
A good idea, or an idea that needs to
be reviewed.
An excellent idea.

23. citoolkit.com
Other Applications
Traffic light assessment concepts can be used in several other applications.
Traffic Light Assessment 23
ID Name Job Title Safety Intro. Defect Intro. SPC 5S SOP DMAIC FMEA Score
3113 Hani Supervisor 2 2 2 0 4 0 0 10
3120 Sami Supervisor 2 4 3 1 3 2 0 15
3181 Emer Maintainer 1 1 2 2 4 0 0 10
3109 Zakaria Maintainer 0 1 1 0 3 0 0 5
3110 Shady Inspector 0 2 0 0 2 0 0 4
3193 Peter Inspector 1 3 1 0 2 1 0 8
3174 Kumar Inspector 1 2 1 1 1 0 0 6
Training Requirement Score: 5 2 4 6 1 6 7
4 Trainer level
3 Practical experience
2 Little practical experience
1 Basic awareness
0 Training needed
Skill Matrix

24. © Copyright Citoolkit.com. All Rights Reserved.
CITOOLKIT
Made with by
The Continuous Improvement Toolkit
www.citoolkit.com