A company has set the unacceptable error level at 10 percent. Which tool can trigger a warning when the error level reaches eight percent?

A key performance indicator (KPI) is an effective tool for monitoring the performance of critical processes within an organization. In this scenario, the KPI can be configured to track the error level in real time and trigger alerts or warnings when the error rate approaches a predefined threshold—in this case, eight percent, which is below the unacceptable level of ten percent.

Using KPIs allows organizations to maintain control over their processes, providing insights that can help manage performance and improve quality. When the error level hits eight percent, the KPI can notify relevant stakeholders, enabling them to take corrective actions before reaching the unacceptable threshold. This proactive approach helps in risk management by mitigating potential issues early on, ensuring that performance standards are upheld, and enhancing overall operational effectiveness.

In contrast, while fault tree analysis, statistical process control, and failure modes and effects analysis are valuable methodologies for understanding risks and failures, they do not inherently function as real-time monitoring tools that provide immediate warnings based on specific performance metrics like KPIs do.