SQDP and SQDC are two widely used visual management frameworks in manufacturing plants, warehouses and Lean organisations.
Both systems begin with the same three areas:
- S β Safety
- Q β Quality
- D β Delivery
The difference appears in the final letter:
- in SQDP, P usually means Production or People,
- in SQDC, C means Cost.
The choice should not be based on fashion or on copying another companyβs board. It should reflect the decisions the team must make every day, the management level and the availability of reliable data.
For the full framework covering board structure, KPI selection, daily meetings, actions and implementation, see SQDP Board β The Complete Guide.
Table of contents
- What is SQDP?
- What is SQDC?
- The key difference: P or C
- Production or People in SQDP
- What Cost means in SQDC
- SQDP vs SQDC comparison
- When to choose SQDP
- When to choose SQDC
- Can SQDP and SQDC be combined?
- Common mistakes
- Example KPIs
- Frequently asked questions
What is SQDP?
SQDP is a daily management framework based on four areas:
- Safety,
- Quality,
- Delivery,
- Production or People.
Its purpose is to give the team a fast view of current operational performance.
During a daily review, the team asks:
- Did we work safely?
- Did the product meet quality requirements?
- Did we complete the plan and deliver on time?
- Did we achieve the required production efficiency or workforce readiness?
SQDP is commonly used at:
- production line level,
- shift level,
- team level,
- warehouse area level,
- operational department level.
It works especially well where employees have direct influence over output, productivity, staffing and day-to-day process issues.
What is SQDC?
SQDC means:
- S β Safety
- Q β Quality
- D β Delivery
- C β Cost
In this version, Production or People is replaced by Cost.
The system therefore asks not only whether the process was safe, compliant and on time, but also:
Was the result achieved at an acceptable cost?
The Cost section can include:
- scrap cost,
- rework cost,
- overtime,
- premium freight,
- material consumption,
- downtime cost,
- labour variance,
- energy loss,
- cost of poor quality.
SQDC is often used at a higher management level than SQDP because cost data may depend on finance, controlling or ERP systems.
The key difference: P or C
The main difference is straightforward:
- SQDP focuses on production capability, people or operational efficiency,
- SQDC focuses on economic performance.
This creates two different management questions.
SQDP asks:
Did the process achieve the expected operational result?
SQDC asks:
Did the process achieve the result at the expected cost?
Example
A production line completes 100% of the daily plan.
Delivery is green.
However, the target was achieved through:
- three hours of overtime,
- premium material transport,
- high rework,
- excessive component usage.
Under SQDP, the board may still appear positive if production output and delivery are the main focus.
Under SQDC, Cost may be red because the result was achieved inefficiently.
Production or People in SQDP
The letter P does not always mean the same thing.
P as Production
Typical KPIs include:
- OEE,
- productivity,
- line efficiency,
- cycle time,
- downtime,
- utilisation,
- standard attainment,
- units per labour hour,
- changeover performance.
Production answers:
How efficiently did we use our resources?
P as People
Typical KPIs include:
- absence,
- staffing coverage,
- training completion,
- skill matrix coverage,
- multiskilling,
- Kaizen participation,
- turnover,
- required certifications.
People answers:
Did the team have the capacity and capability required to perform?
Both interpretations are valid. The organisation should define one meaning clearly and link it to specific KPIs.
For a detailed explanation of the acronym, see What Does SQDP Stand For?.
What Cost means in SQDC
Cost should not be represented by one broad financial number that the team cannot explain.
A useful Cost KPI should be:
- connected to the process,
- available quickly enough,
- understandable,
- influenced by the team,
- useful for daily decisions.
Example Cost KPIs
- scrap cost,
- rework cost,
- overtime cost,
- downtime cost,
- premium freight cost,
- material variance,
- energy consumption,
- tool consumption,
- cost of poor quality,
- labour cost variance.
The problem of delayed cost data
One of the main challenges with SQDC is data availability.
If Cost is calculated only after month-end closing, it is not suitable for a daily meeting.
In that case, use operational proxies such as:
- overtime hours,
- number of premium shipments,
- quantity of scrap,
- excess material use,
- downtime minutes.
These measures can later be translated into financial value.
SQDP vs SQDC comparison
SQDP is more operational.
SQDC is more financially operational.
When to choose SQDP
SQDP is usually the better choice when:
- the board is used at production line level,
- cost data is not available daily,
- safety, quality, plan and productivity are the main priorities,
- the team directly influences operational results,
- this is the first Daily Management implementation,
- a simple and understandable structure is required.
SQDP is often easier to launch as a pilot.
Typical data such as:
- plan,
- output,
- defects,
- downtime,
- absence,
is normally available close to the process.
When to choose SQDC
SQDC is usually the better choice when:
- the board is used at department or plant level,
- cost is central to daily decisions,
- current cost data is available,
- the organisation wants to reduce overtime, scrap or premium freight,
- operational results are acceptable but costs are rising,
- controlling supports daily management.
SQDC may be especially useful for:
- production managers,
- operations managers,
- plant managers,
- cross-functional leadership teams.
Can SQDP and SQDC be combined?
Yes.
Many organisations use extended variants such as:
- SQCDP
- SQDCP
- SQDCM
Example:
- Safety,
- Quality,
- Cost,
- Delivery,
- Production.
The combined system provides a broader picture, but it also increases the number of metrics and meeting time.
When does an extended version make sense?
Use an extended variant when:
- every area has a practical KPI,
- data is available daily,
- the meeting remains short,
- each metric supports a decision,
- the team understands the relationships between measures.
When should you avoid extending the board?
Do not add another letter simply because the board looks more complete.
If Cost is only updated monthly, it should not be part of a daily SQDCP review.
Common mistakes
Copying another companyβs board
A system that works in one plant may not match another process.
No clear definition of P
One shift uses Production, another uses People.
Cost without current data
The Cost section is updated weeks late.
Duplicate KPIs
Delivery and Production show the same result.
Too many metrics
The board becomes a monthly report.
No data owner
Nobody is responsible for updates.
No reaction to red status
The result is marked red, but no action is created.
Choosing the acronym before defining the problem
The organisation selects SQDC first and only later decides what it wants to manage.
The correct order is:
- define the problem,
- define the decisions,
- select KPIs,
- choose the board structure.
Example KPIs
SQDP
SQDC
SQCDP
The best KPI set is not the largest one. It is the one that supports useful daily decisions.
Frequently asked questions
What is the difference between SQDP and SQDC?
SQDP ends with Production or People, while SQDC ends with Cost.
Which system is better?
Neither is universally better. SQDP often fits operational teams, while SQDC is better for cost-focused management.
Can SQDP include Cost?
Yes, but in that case an extended framework such as SQCDP or SQDCP may be clearer.
Can SQDC be used at line level?
Yes, if the Cost KPIs are understandable and available daily.
Can P mean People?
Yes. In many organisations, P means People instead of Production.
Must the board contain exactly four areas?
No. It can be extended, but every additional area should create real management value.
Must Cost be shown in currency?
Not always. Operational proxies such as scrap quantity, overtime hours or premium shipments can be used.
Summary
The main difference is simple:
- SQDP focuses on operational performance, production or people,
- SQDC adds cost control.
SQDP is usually more suitable for operational teams and first-time Daily Management pilots.
SQDC is more suitable when current cost information is available and economic performance must be reviewed every day.
The choice should come from process needs, not from the acronym itself.
For the complete framework, see SQDP Board β The Complete Guide.
Related articles
Ready to deploy Lean boards?
14 days free. No credit card. Setup in 30 minutes.