This document discusses key performance indicators (KPIs) for measuring supply chain performance. It outlines several areas that should be measured, including cost savings, cash generation, operational excellence, and maturity of the organization. Specific KPIs are provided for measuring value added, stakeholders such as customers and suppliers, and processes like procurement cycle time. The document emphasizes that defining and measuring KPIs allows an organization to identify areas for improvement and track progress over time.
This document outlines key performance indicators (KPIs) for measuring the procurement function. It discusses measuring: 1) the value added by procurement through cost savings and cash flow improvements, 2) stakeholder satisfaction including customers, employees, and suppliers, and 3) operational excellence through metrics like procurement cycle time. The document also covers strategic sourcing approaches like expenditure analysis, category management, and supply base consolidation to further optimize procurement. The goal is to establish KPIs that holistically measure procurement's contributions and identify opportunities for continuous improvement.
This document provides information about key performance indicators (KPIs) for procurement and logistics managers. It lists examples of KPIs and describes the steps to create KPIs for this position, including defining objectives, identifying key result areas, and determining how to measure results. The document recommends that KPIs be clearly linked to strategy and answer important questions, and warns against creating too many KPIs or ones that do not change as goals change. More KPI materials can be found on the listed website.
This document discusses key performance indicators (KPIs) for the chief procurement officer position. It provides examples of KPIs, outlines steps to create KPIs for this role, discusses common mistakes in developing KPIs, and how to design effective KPIs linked to organizational strategy. The document recommends visiting an external website for additional KPI samples and materials related to performance reviews.
The document discusses key performance indicators (KPIs) for a purchasing supervisor position. It provides examples of KPIs, outlines steps to create KPIs for the role, discusses common mistakes in KPI development, and how to design effective KPIs linked to strategy and goals. The document recommends visiting an external website for additional KPI samples and performance management resources.
This document discusses key performance indicators (KPIs) for procurement staff. It provides examples of KPIs, steps for creating KPIs for procurement staff, common mistakes to avoid, and how to design effective KPIs. The document recommends visiting kpi123.com for additional KPI samples, templates, and resources related to performance reviews and interview questions.
The document discusses key performance indicators (KPIs) for a purchasing coordinator position. It provides examples of KPIs, steps for creating KPIs for this role, and common mistakes to avoid, such as having too many KPIs or KPIs that do not align with objectives. The document recommends visiting an external website for additional KPI samples and materials related to performance reviews.
This document discusses key performance indicators (KPIs) for a procurement assistant position. It provides examples of KPIs, steps for creating KPIs, common mistakes to avoid, and how to design effective KPIs linked to strategy and goals. The document recommends visiting kpi123.com for additional KPI samples, performance appraisal forms, review methods and phrases to help evaluate a procurement assistant's job performance.
This document discusses key performance indicators (KPIs) for measuring supply chain performance. It outlines several areas that should be measured, including cost savings, cash generation, operational excellence, and maturity of the organization. Specific KPIs are provided for measuring value added, stakeholders such as customers and suppliers, and processes like procurement cycle time. The document emphasizes that defining and measuring KPIs allows an organization to identify areas for improvement and track progress over time.
This document outlines key performance indicators (KPIs) for measuring the procurement function. It discusses measuring: 1) the value added by procurement through cost savings and cash flow improvements, 2) stakeholder satisfaction including customers, employees, and suppliers, and 3) operational excellence through metrics like procurement cycle time. The document also covers strategic sourcing approaches like expenditure analysis, category management, and supply base consolidation to further optimize procurement. The goal is to establish KPIs that holistically measure procurement's contributions and identify opportunities for continuous improvement.
This document provides information about key performance indicators (KPIs) for procurement and logistics managers. It lists examples of KPIs and describes the steps to create KPIs for this position, including defining objectives, identifying key result areas, and determining how to measure results. The document recommends that KPIs be clearly linked to strategy and answer important questions, and warns against creating too many KPIs or ones that do not change as goals change. More KPI materials can be found on the listed website.
This document discusses key performance indicators (KPIs) for the chief procurement officer position. It provides examples of KPIs, outlines steps to create KPIs for this role, discusses common mistakes in developing KPIs, and how to design effective KPIs linked to organizational strategy. The document recommends visiting an external website for additional KPI samples and materials related to performance reviews.
The document discusses key performance indicators (KPIs) for a purchasing supervisor position. It provides examples of KPIs, outlines steps to create KPIs for the role, discusses common mistakes in KPI development, and how to design effective KPIs linked to strategy and goals. The document recommends visiting an external website for additional KPI samples and performance management resources.
This document discusses key performance indicators (KPIs) for procurement staff. It provides examples of KPIs, steps for creating KPIs for procurement staff, common mistakes to avoid, and how to design effective KPIs. The document recommends visiting kpi123.com for additional KPI samples, templates, and resources related to performance reviews and interview questions.
The document discusses key performance indicators (KPIs) for a purchasing coordinator position. It provides examples of KPIs, steps for creating KPIs for this role, and common mistakes to avoid, such as having too many KPIs or KPIs that do not align with objectives. The document recommends visiting an external website for additional KPI samples and materials related to performance reviews.
This document discusses key performance indicators (KPIs) for a procurement assistant position. It provides examples of KPIs, steps for creating KPIs, common mistakes to avoid, and how to design effective KPIs linked to strategy and goals. The document recommends visiting kpi123.com for additional KPI samples, performance appraisal forms, review methods and phrases to help evaluate a procurement assistant's job performance.
This document discusses procurement key performance indicators (KPIs) and provides examples of different types of KPIs. It explains that procurement KPIs measure the efficiency and effectiveness of procurement processes. The document lists resources for procurement KPI examples, including lists of KPIs, performance appraisal forms and methods. It also provides guidance on developing KPIs, such as linking them to strategies and designing them to empower employees. Finally, it outlines different types of KPIs, including process, input, output, leading, lagging, outcome, qualitative and quantitative.
This document discusses key performance indicators (KPIs) for procurement specialists. It provides steps to create KPIs for procurement specialists, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document cautions against creating too many KPIs and notes that KPIs should be linked to strategy and empower employees. It also lists different types of KPIs and provides resources for additional KPI materials.
The document discusses key performance indicators (KPIs) for purchasing specialists. It provides steps to create KPIs for purchasing specialists, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document also discusses mistakes to avoid, such as creating too many KPIs or ones that do not change to suit goals. Finally, it recommends visiting an external website for more KPI materials tailored for purchasing specialists.
This document discusses key performance indicators (KPIs) for procurement engineers. It provides steps to create KPIs for procurement engineers, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document cautions against creating too many KPIs and notes that KPIs should be linked to strategy and empower employees. It also lists different types of KPIs and provides a link to additional KPI materials on kpi123.com.
The document discusses key performance indicators (KPIs) for purchasing agents. It provides steps to create KPIs for purchasing agents, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document also discusses mistakes to avoid, such as creating too many KPIs or ones that do not change to suit goals. Finally, it recommends visiting an external website for more KPI materials and samples related to purchasing agents.
Final deliverable presented by my project team to the UC Berkeley Business Services department, outlining key performance metrics for the ongoing procurement reform initiative.
This document discusses key performance indicators (KPIs) for procurement analysts. It provides steps to create KPIs for procurement analysts, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document cautions against creating too many KPIs and notes that KPIs should be linked to strategy and empower employees. It also lists different types of KPIs and provides resources for additional KPI materials.
The document discusses key performance indicators (KPIs) for sales order processing positions. It provides information on developing KPIs, including defining objectives and key result areas, identifying tasks, and determining how to measure results. The document recommends that KPIs be clearly linked to strategy and empower employees. It lists types of KPIs and provides links to materials on sales KPIs, performance appraisal forms, review methods and phrases.
The document discusses measuring procurement's performance and calculating savings. It covers:
1) The challenges of accurately measuring procurement savings, as focus on savings can incentivize deliberately misleading reporting through methods like carrying forward savings from prior years.
2) The need to separate external factors like currency fluctuations and market movements from internal procurement actions to identify true savings.
3) Different approaches for measuring one-time vs recurring spend, and ensuring negotiated savings are captured in actual spending to benefit the bottom line.
4) The importance of a balanced set of metrics beyond just savings, including quality, operational performance, added value, and people factors.
How to Effectively Measure a Procurement Organization SampleJulie Brignac
The document discusses how to effectively measure a procurement organization. It outlines key metrics to implement depending on organizational structure, such as supply base statistics, productivity/cost savings, and compliance. Centralized organizations should focus on metrics like number of suppliers, cost per purchase order, and purchase orders without numbers. Decentralized organizations should emphasize supply base statistics and productivity is difficult to measure. The document also defines important metrics and provides examples of effective reporting venues.
Purchasing Catch Up On 2013 Cost Savings GoalsBill Kohnen
Informal 2013 Mid Year data shows many Purchasing Departments coming up short on planned cost savings goals. The good news is there seem to be a good chance to recover in the second half of he year. A variety practical approachs are provided to increase saving for the remainder of 2013.
This document discusses key performance indicator (KPI) examples for suppliers. It provides links to download lists of KPIs, performance appraisal forms and methods. It also outlines steps to create KPIs for specific job roles like construction technician. Potential mistakes in developing KPIs are noted, such as having too many KPIs or not linking them to strategy. Different types of KPIs are defined, including process, input, output, leading, lagging, outcome, qualitative and quantitative.
Purchasing Return on Investment (ROI) a Valuable but Underutilized MetricBill Kohnen
Purchasing ROI is an easy metric to calculate with can be used for Strategic Planning and Forecasting, Bench marking, as well as monitoring on going activities.
This document discusses key performance indicators (KPIs) for sourcing. It provides examples of different types of KPI materials that can be used for performance evaluation, including lists of KPIs, performance appraisal metrics, and methods. It also outlines steps for creating KPIs for specific job roles like construction technician. Common mistakes to avoid when developing KPIs are having too many metrics or not linking them clearly to strategies and goals. KPIs should be designed to empower employees and provide relevant information.
This document discusses 10 key performance indicators (KPIs) that are widely used to measure procurement organization performance. The KPIs include total cost savings, quality, delivery, cost avoidance, implemented cost reduction savings, procurement cycle time, percentage of spend from top suppliers, procurement ROI, managed spend as a percentage of total spend, and contract compliance. Regular measurement of these KPIs promotes continuous improvement, benchmarking against best practices, and identification of opportunities within the supply base.
This document discusses key performance indicators (KPIs) for vendor management. It provides information on developing KPIs, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document also discusses common mistakes in creating KPIs, such as having too many KPIs, and ensuring KPIs change based on goals. Different types of KPIs are outlined, including process, input, output, leading, lagging, outcome, qualitative and quantitative KPIs. Additional resources on KPIs can be found on the provided website.
This document discusses key performance indicators (KPIs) for a fixed assets accountant position. It provides examples of KPIs, steps for creating KPIs, common mistakes to avoid, and how to design effective KPIs. The document recommends visiting an online site for more fixed assets accountant KPI samples and additional materials on performance appraisal forms and methods.
Making Your Procurement Department A Profit CenterJeffrey Bartlett
This document discusses strategies for companies to optimize spend and procurement practices to increase profits. It recommends developing a "big business attitude" towards procurement, even for small businesses, such as bundling spend categories, maintaining multiple suppliers, and forecasting future needs to suppliers. It also provides tips for procurement professionals, such as having accounts payable leaders drive payable improvements, gaining executive sponsorship, strengthening the relationship between finance and purchasing, tailoring approaches to different supplier types, and establishing a rigorous cost baseline before negotiating terms. The goal is to systematically manage expenses and spending to realize significant savings.
10 Ways To Improve Your Purchasing DepartmentKeith Taylor
10 ways to improve your purchasing department. Includes tips from a purchasing and materials management professional with over 22 years experience. www.lbsi.com
The document discusses performance indicators and key performance indicators (KPIs) which are used to measure and monitor the performance of organizations. It provides examples of KPIs for different business functions such as manufacturing, purchasing, sales, finance, maintenance, and human resources. Some key aspects covered include selecting KPIs based on critical success factors and customer requirements, using a balanced scorecard and performance dashboards to monitor KPIs, and characteristics of effective performance indicators.
This document discusses procurement key performance indicators (KPIs) and provides examples of different types of KPIs. It explains that procurement KPIs measure the efficiency and effectiveness of procurement processes. The document lists resources for procurement KPI examples, including lists of KPIs, performance appraisal forms and methods. It also provides guidance on developing KPIs, such as linking them to strategies and designing them to empower employees. Finally, it outlines different types of KPIs, including process, input, output, leading, lagging, outcome, qualitative and quantitative.
This document discusses key performance indicators (KPIs) for procurement specialists. It provides steps to create KPIs for procurement specialists, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document cautions against creating too many KPIs and notes that KPIs should be linked to strategy and empower employees. It also lists different types of KPIs and provides resources for additional KPI materials.
The document discusses key performance indicators (KPIs) for purchasing specialists. It provides steps to create KPIs for purchasing specialists, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document also discusses mistakes to avoid, such as creating too many KPIs or ones that do not change to suit goals. Finally, it recommends visiting an external website for more KPI materials tailored for purchasing specialists.
This document discusses key performance indicators (KPIs) for procurement engineers. It provides steps to create KPIs for procurement engineers, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document cautions against creating too many KPIs and notes that KPIs should be linked to strategy and empower employees. It also lists different types of KPIs and provides a link to additional KPI materials on kpi123.com.
The document discusses key performance indicators (KPIs) for purchasing agents. It provides steps to create KPIs for purchasing agents, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document also discusses mistakes to avoid, such as creating too many KPIs or ones that do not change to suit goals. Finally, it recommends visiting an external website for more KPI materials and samples related to purchasing agents.
Final deliverable presented by my project team to the UC Berkeley Business Services department, outlining key performance metrics for the ongoing procurement reform initiative.
This document discusses key performance indicators (KPIs) for procurement analysts. It provides steps to create KPIs for procurement analysts, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document cautions against creating too many KPIs and notes that KPIs should be linked to strategy and empower employees. It also lists different types of KPIs and provides resources for additional KPI materials.
The document discusses key performance indicators (KPIs) for sales order processing positions. It provides information on developing KPIs, including defining objectives and key result areas, identifying tasks, and determining how to measure results. The document recommends that KPIs be clearly linked to strategy and empower employees. It lists types of KPIs and provides links to materials on sales KPIs, performance appraisal forms, review methods and phrases.
The document discusses measuring procurement's performance and calculating savings. It covers:
1) The challenges of accurately measuring procurement savings, as focus on savings can incentivize deliberately misleading reporting through methods like carrying forward savings from prior years.
2) The need to separate external factors like currency fluctuations and market movements from internal procurement actions to identify true savings.
3) Different approaches for measuring one-time vs recurring spend, and ensuring negotiated savings are captured in actual spending to benefit the bottom line.
4) The importance of a balanced set of metrics beyond just savings, including quality, operational performance, added value, and people factors.
How to Effectively Measure a Procurement Organization SampleJulie Brignac
The document discusses how to effectively measure a procurement organization. It outlines key metrics to implement depending on organizational structure, such as supply base statistics, productivity/cost savings, and compliance. Centralized organizations should focus on metrics like number of suppliers, cost per purchase order, and purchase orders without numbers. Decentralized organizations should emphasize supply base statistics and productivity is difficult to measure. The document also defines important metrics and provides examples of effective reporting venues.
Purchasing Catch Up On 2013 Cost Savings GoalsBill Kohnen
Informal 2013 Mid Year data shows many Purchasing Departments coming up short on planned cost savings goals. The good news is there seem to be a good chance to recover in the second half of he year. A variety practical approachs are provided to increase saving for the remainder of 2013.
This document discusses key performance indicator (KPI) examples for suppliers. It provides links to download lists of KPIs, performance appraisal forms and methods. It also outlines steps to create KPIs for specific job roles like construction technician. Potential mistakes in developing KPIs are noted, such as having too many KPIs or not linking them to strategy. Different types of KPIs are defined, including process, input, output, leading, lagging, outcome, qualitative and quantitative.
Purchasing Return on Investment (ROI) a Valuable but Underutilized MetricBill Kohnen
Purchasing ROI is an easy metric to calculate with can be used for Strategic Planning and Forecasting, Bench marking, as well as monitoring on going activities.
This document discusses key performance indicators (KPIs) for sourcing. It provides examples of different types of KPI materials that can be used for performance evaluation, including lists of KPIs, performance appraisal metrics, and methods. It also outlines steps for creating KPIs for specific job roles like construction technician. Common mistakes to avoid when developing KPIs are having too many metrics or not linking them clearly to strategies and goals. KPIs should be designed to empower employees and provide relevant information.
This document discusses 10 key performance indicators (KPIs) that are widely used to measure procurement organization performance. The KPIs include total cost savings, quality, delivery, cost avoidance, implemented cost reduction savings, procurement cycle time, percentage of spend from top suppliers, procurement ROI, managed spend as a percentage of total spend, and contract compliance. Regular measurement of these KPIs promotes continuous improvement, benchmarking against best practices, and identification of opportunities within the supply base.
This document discusses key performance indicators (KPIs) for vendor management. It provides information on developing KPIs, including defining objectives, identifying key result areas and tasks, and determining methods to measure results. The document also discusses common mistakes in creating KPIs, such as having too many KPIs, and ensuring KPIs change based on goals. Different types of KPIs are outlined, including process, input, output, leading, lagging, outcome, qualitative and quantitative KPIs. Additional resources on KPIs can be found on the provided website.
This document discusses key performance indicators (KPIs) for a fixed assets accountant position. It provides examples of KPIs, steps for creating KPIs, common mistakes to avoid, and how to design effective KPIs. The document recommends visiting an online site for more fixed assets accountant KPI samples and additional materials on performance appraisal forms and methods.
Making Your Procurement Department A Profit CenterJeffrey Bartlett
This document discusses strategies for companies to optimize spend and procurement practices to increase profits. It recommends developing a "big business attitude" towards procurement, even for small businesses, such as bundling spend categories, maintaining multiple suppliers, and forecasting future needs to suppliers. It also provides tips for procurement professionals, such as having accounts payable leaders drive payable improvements, gaining executive sponsorship, strengthening the relationship between finance and purchasing, tailoring approaches to different supplier types, and establishing a rigorous cost baseline before negotiating terms. The goal is to systematically manage expenses and spending to realize significant savings.
10 Ways To Improve Your Purchasing DepartmentKeith Taylor
10 ways to improve your purchasing department. Includes tips from a purchasing and materials management professional with over 22 years experience. www.lbsi.com
The document discusses performance indicators and key performance indicators (KPIs) which are used to measure and monitor the performance of organizations. It provides examples of KPIs for different business functions such as manufacturing, purchasing, sales, finance, maintenance, and human resources. Some key aspects covered include selecting KPIs based on critical success factors and customer requirements, using a balanced scorecard and performance dashboards to monitor KPIs, and characteristics of effective performance indicators.
Lean accounting is a business management tool that focuses on reducing waste and maximizing customer value. It aims to deliver the right product, in the right quantity, quality, and time to customers at the lowest cost. Lean accounting identifies seven forms of waste and uses lean tools to eliminate waste from accounting processes while maintaining financial controls. It aims to provide accurate and timely financial information to support the lean culture and continuous improvement. The key principles of lean accounting are to measure performance and motivate waste reduction throughout the organization.
OPEX.GURU provides services related to operational excellence and process improvement. They use tools and techniques to review client processes and strategies, and bring innovative ideas to help clients continue to be leaders in their industries. Their services include process analytics, client insights, process redesign and innovation, and training programs. They take a strategic and execution-focused approach to help clients unlock value from their data and processes.
The document discusses performance measurement in logistics. It defines key logistics costs including direct, indirect, capital and overhead costs. It also discusses how to categorize costs based on activities and allocate costs over appropriate time periods. A logistics audit aims to identify areas for improvement and unlock hidden value in the logistics system through a thorough independent review.
Business Metrics for the AV Industry - PSNi Network PresentationJohn Graham
This presentation is targeted to financial professionals with the focus is on metrics that help in operations and strategic planning, not valuation or financial ratios. We will discuss the current trends we are seeing in the A/V space for metrics, where we see the future for A/V metrics and the barrier to making the most of those metrics
Intacct Project Accounting and Financials for your Services BusinessIntacct Corporation
Services and project-based companies are focused on capturing 100% of client billable time and expenses, developing accurate budgets and forecasts, and improving cash flow management. Intacct understands your business challenges and has features and functionality uniquely suited to project-based businesses.
Learn how Intacct can help:
--Streamline the entire order-to-cash process
--Automate project and resource management
--Manage time and expenses with ease for both billable and non-billable items
--Speed time to invoice and payment through automated project billing
--Gain unprecedented visibility through real-time dashboards and reports
This document discusses performance measurement in organizations. It describes several types of performance measures including capital market performance, organizational learning and change, and product/subunit performance. It also discusses short-term financial performance measures like divisional profits, budget variances, and cash flow. Additionally, it explains common performance measures for investment centers like return on investment, residual income, and economic value added. Finally, it notes some limitations of these measures including potential for manipulation and lack of consideration for time value of money.
The document discusses how to realize value from a TPM Retail investment through a strategic value assessment conducted by AFS. It outlines AFS's approach to reviewing processes, functionality usage, and recommendations. The assessment occurs over 2 months and includes a kickoff, remote evaluation, findings presentation, and on-site recommendations meeting. Deliverables include process and data recommendations, training needs, and advanced feature usage to improve processes and system utilization. Sample recommendations shown address budget creation and accrual management processes. The goal is to optimize the investment in TPM Retail.
This document summarizes a webinar on leveraging industry benchmark data to optimize finance shared services. It discusses how top performers deliver services at lower costs with fewer resources than lower performers. Common key performance indicators for finance are presented, such as cycle times, invoices processed per FTE, and total function costs. Examples are given of how benchmarking identified opportunities at one company to reduce headcount by 49 FTEs and save $2.5M annually through consolidation and automation. Common mistakes in benchmarking are also reviewed along with frameworks to properly conduct benchmarking.
Performance measures should aim to fundamentally change how organizations do business by focusing on the future rather than the past. Measures should assess an individual's contribution to increasing firm value and cash flows. While accounting measures are commonly used, they are lagging indicators that can encourage short-term thinking. A balanced set of lead and lag indicators across financial, customer, internal process, and learning/growth dimensions is needed to fully capture an organization's long-term performance according to principles like Six Sigma.
The document provides guidance on conducting a spend reduction project. It outlines a six-step approach including establishing a spend baseline, assessing the supply chain, performing a market analysis, rationalizing spend, recovering overpayments, and implementing improvements. The goal is to reduce operating expenses on purchased goods and services through various levers such as demand management, strategic sourcing, and tax minimization. Spend reduction can typically save 10-25% and identifies both short and long-term cost reduction opportunities.
In this presentation we allocated a full day seminar every quarter to teach 1st and 2nd Year Associates the fundamental approach, processes and tools and techniques to begin working with their engagement team on their first Spend Reduction project.
At Monitor, as McKinsey or BCG we may seem to produce a lot of tools and guidelines that we expect staff to follow. But keep in mind with over 500 staff dedicated "just" to coming up with the new breakthrough model, approach, theory, tool or techniue we see it as a small price t pay to maintain our edge in a sector where superior client problem solving abilties and the latest breakthrough thinking are waht keeps us off the streets.
1.1 identify the type of accounting
1.2 difference between Cost Accounting , Cost Accountancy and Costing
1.3 understand the Management information needs
1.4 identify the objectives of cost accounting
1.5 difference between Cost Accounting Vs. Financial Accounting
1.6 identify the role of cost accountant
performance measure
,
why measure performance
,
the value concept
,
measure what matters
,
why accounting measures of performanceare not ade
,
lead indicators as value drivers
,
financial performance can be measured by
,
internal business process measures
,
the objectives of six sigma
,
difference between tqm and six sigma
,
malcolm baldrige national quality award
LITA Executive Webinar with Niels Loader
Niels will share the insights gained in determining and implementing metrics within IT, particularly focusing on the metrics used in a Lean IT organization. He will focus on the key pitfalls and successful strategies for getting to the right metrics and making them work.
Top 10 most important manufacturing performance indicators in 2019MRPeasy
mrpeasy.com
In manufacturing, there are many outside influencing factors, tracking the performance of an operation with KPI metrics means the difference between success and failure. Here are the most important manufacturing performance indicators.
Бюджетування та стратегічне планування діяльності ІТ компанійDakiry
This document discusses strategic planning and budgeting in IT. It begins by outlining the need for a general financial system to house all financial data in one place and reflect real business processes. It then describes various financial subsystems and responsibility centers that divide operations for accountability. The document outlines budgeting and planning steps including defining structures, targets, assumptions and owners. It also discusses purposes of budgeting like resource allocation and performance measurement. Key financial KPIs for IT are presented for metrics like delivery profit margin, return on investment and days sales outstanding. The overall goal discussed is establishing an efficient financial management system.
PROMOTING GREEN ENTREPRENEURSHIP AND ECO INNOVATION FOR SUSTAINABLE GROWTH.docxnehaneha293248
: This study investigates the multi-faceted relationship between entrepreneurship, innovation, and sustainability across countries at different development levels. We construct a novel dataset combining measures of entrepreneurial activity, innovation outputs, and sustainability performance indicators related to economic, social, and environmental dimensions.Using country-level panel regression analysis, we find that entrepreneurship rates and attitudes are positively associated with social sustainability factors like education, gender equality, and institutional quality. However, high entrepreneurship levels do not necessarily correlate with better environmental sustainability outcomes, suggesting entrepreneurs may prioritize economic objectives over environmental ones.The results for innovation are more mixed. Greater innovation output is linked to higher economic development, but also associated with both positive and negative sustainability factors. This implies that while innovations drive economic progress, they may come with environmental costs without complementary policies. The findings suggest that entrepreneurship supports social sustainability, but pursuing entrepreneurship and innovation alone is insufficient for achieving environmental sustainability goals. We discuss policy implications, including strengthening education and skills, improving access to financing for sustainable ventures, incentivizing green innovation, and developing sustainability reporting standards. By aligning entrepreneurship and innovation with sustainability priorities, policymakers can harness these dynamic forces to create more sustainable, inclusive, and resilient economies.
Ecofrico: Leading the Way in Sustainable Hemp BackpacksEcofrico
Explore Ecofrico's commitment to sustainability with our range of eco-friendly hemp backpacks. Discover how we combine ethical production, durable materials, and global reach to promote a greener future.
3. 3
Back to the basics:
• Keep it simple
• Life is too short, have fun and smile
• Every dollar saved goes straight to Profit and Loss
• Every extra day of negotiated payment terms goes straight to Free Cash Flow
• We need the suppliers as much as they need us as a customer: No suppliers, no business
• General expenses are real expenses and cost money
• Pricing is only one part of the contract
• Supply Chain, Procurement, Purchasing… who cares, you name it: Materials and Services
that cost companies money and can not be performed without a Purchase Order
• Do focus on what you do best: Outsource Non Core activities
• Sales, HR, Payroll and Taxes: Those are “horses of a different color”. There should be
specialized teams to work on those matters better than Supply Chain
Supply Chain: Professional dedicated team which function is to spend
the company´s money to fulfill its needs in the best possible way,
aligned with company´s Mission, Vision and Values
Supply Chain interacts with Sales, Marketing, Finance, Quality, CSR, Environmental, Health and Safety, Risk Management,
Compliance, Legal, Manufacturing, Operations and Maintenance, Internal and External audits, Inventory, Warehousing, IT,
I+D+i, M&A, Investors…
4. 1 Scorecards
2 Why to measure
3 What to measure
4 Procurement KPI’s
Contents
4
5 Maturity of Procurement
Organization
6
Strategic Sourcing:
• Expend analysis
• Category Management
• Supply Base consolidation
6. Scorecards
6
• Managers use Balanced Scorecards to manage the organization and to set up plans to drive day to
day operations towards long term goals and objectives
• Balanced Scorecards are made up of a set of Key Performance Indicators (KPI’s)
• Objective is to define a set of KPI’s applicable to Supply Chain that allow to know the status,
progress and improvements of the organizations
8. 8
“What is not defined can not be measured
What is not measured can not be improved
What is not improved, always gets worse”
William Thomson, Lord Kelvin
1824 – 1907
0º K = -273,15º C (absolute zero)
Define, Measure, Improve
9. 9
KPI’s are simple and results based tools needed to:
• Align day to day behaviors towards defined objectives
• Determine what is working right
• Identify what to improve and adjust based in the results
• Report status of activities inside Supply Chain, report to the rest of
the Management
• Set SMART objectives
• Benchmark: Comparison with other organizations by comparing KPI’s
11. 11
A good set of KPI’s should comprehend holistically
and globally all activities developed by the Supply
Chain Function
A Supply Chain Balanced Scorecard should measure three
core areas of the Supply Chain Function:
1. Value added by the Supply Change to the Organization
(Savings and Free Cash Flow)
2. Stakeholders:
a. Supply Base Portfolio performance
b. Procurement Personnel performance
c. Internal Customer feedback
3.Operational Excellence of the Procurement Processes
14. 14
Core Area KPI Calculated KPI Remarks Formula Units Where
How
Often
1.1.1. Cost Savings Recurrent spend
One off spend
(P2 - P1)*V2 Annual
Budget - PO price
€
€
KPI report
KPI report
Monthly
Monthly
1.1.2. Cost Avoidance Price Increase delay
Opportunistic Buy
Annual Impact
(Budget - PO price)*V
€
€
KPI report
KPI report
Monthly
Monthly
1.1.3. Cash Generation Term improvements
Inventory Sale
@ Oficial Interest rate € KPI report Monthly
1.1.4. Transactional Savings Simplify Backoffice
Proccesses
Avoid / reduce / simplify
workflows, redundancies
€ KPI report Monthly
1.2 Procurement ROI Savings / Procurement Budget Salaries, Gen Exp., Travel
From ERP system
Savings / Procurement
Budget
% Anual
Report
Annually
1.3 Spend per employee
Transactions per employee
Total Spend / No. of
Employees No. Transactions /
No. of Employees
From ERP system Total Spend / Number of
Employees
€ /
Employee
Anual
Report
Annually
1.4 Savings per employee Savings / No. of Employees Salaries, Gen Exp., Travel
From ERP system
Savings / Number of
Employees
€ /
Employee
Anual
Report
Annually
1.5 Managed Spend
% Spend that Procurement
manages
% of Spend competitively
sourced
From ERP system Total Spend/ Sourced
Spend
% Anual
Report
Annually
1.6 Commodity Strategy Maturity Assesment Assesment n. a. Report Anual
Report
Annually
Core Area KPI Calculated KPI Remarks Formula Units Where
How
Often
2.1 Customers Perception Internal Customer
Satisfaction Survey
Group Focus Free text
input Short, simple
questions
n.a. Report Anual
Report
Biannually
(6m)
2.2 Employees Performance Track skills and competencies Training Plan n.a. Anual
Report
Annually
2.3.1. Supplier Quality
Right product / Service
ppm if volume big enough
Quality Incidents tracking
Deffects per Million
n.a.
ppm
No.
SQ Report
SQ Report
Monthly
Monthly
2.3.2. On Time Delivery
Right timing
OTD to promised date
OTD to reschedule date
No. Shipments
ontime / not on time
%
%
SQ Report
SQ Report
Monthly
Monthly
2.3.3. Supplier Rating Score
Stakeholder Feedback
Supplier Survey n.a. Rating SQ Report Biannually
(6m)
Core Area KPI Calculated KPI Remarks Formula Units Where
How
Often
3. Operational
Excellence Process /
Policy / Controls
3.1 Procurement Cycle Time
Measure Effectiveness of
Procurement processes
3.1 Procurement Cycle Time
From ERP system
Average time from PR to
PO
n.a. Days Monthly
Report
Monthly
1.Value Added by
Procurement Function
1.1 Savings
Based on TCO
(Total cost of ownership)
Verified by Finance
Globally agreed and Applied
2. Stakeholders
Customers
Employees
Suppliers
2.3 Suppliers Performance
15. 15
4.1 Value added by Supply Chain: Savings and Free Cash Flow Improvement
Amount of money Supply Chain saves by reducing the Total Cost of Ownership
and
Free Cash Flow generated from negotiating Terms with the suppliers
Measures the purchasing departments contribution to the financial success of the organization
• Recurrent expenses: Price decreases year over year (without change in volumes)
• Spot buys / services: “One off” supplies and services compared to budgeted cost
• Cost Avoidances: i.e. Repair vs replace, Spare pools, Opportunistic Buy…
• Cash flow improvements (Calculated at real interest rate)
These actions should be tracked as Profit and Loss: Hard Savings
• Transactional cost savings: Measured as estimated savings when an initiative avoids /
reduces / simplifies processes, redundancies or administrative tasks
These Soft Savings will turn into hard savings over time,
• Avoid RFQs (Frame agreements), Bundle PO´s, Optimize (Reduce) Suppliers
16. 4.1 (Cont.) Value added by Supply Chain: Savings and Free Cash Flow Improvement
• Payback of Supply Chain Cost
Measured in terms of Savings generated / Operational Budget
It benchmark and set goals in terms of Payback and Compliance to Approved Operational Budget
• Spend per Employee
Total Spend / Number of Employees
To design the right size of the Supply Chain organization
• Savings per Employee
Total Savings / Number of Employees
To compare the organization inside and outside the enterprise
• Managed Spend
% Spend that Procurement manages / Total Spend
Measures how effective the function controls and manage the spend
• Supply Chain Maturity Assessment. See Chapter 616
17. 17
4.2 Stakeholders: Customers, Employees, Suppliers
• Customers Perception
Internal customer satisfaction survey
Group Focus Weighted by users. Free text input. Short, simple questions
Cons: Perceptions are never measurable. Need to be supported by measurable data
• Employees Performance
Record skills and competencies via Training Plan
• Suppliers Performance
• Supplier Quality: Right product / Service measured in ppm if volume big enough.
Quality Incidents tracking
• On Time Delivery : Right timing. OTD to promised date/OTD to reschedule date.
Measured as % of on time of total shipments
Services: Project management: Measured as % of execution to plan / milestones.
Suitable to Turn key projects
• Supplier Rating Score: Stakeholder Feedback. Supplier Rating
18. 18
4.3 Operational Excellence:
Procurement Cycle Time
Measure Effectiveness of Procurement processes
Average time between requisition submission and purchase order placement
Average time from the beginning of a sourcing process to signing of contract
From ERP systems:
Procurement Cycle Time = PR approval avg time + PO issuing avg time + PO approval avg time
PR: Purchase Requisition
PO: Purchase Order
Calculation may differs among different Procurement Organizations
Useful: Plot histograms and analyze out of trend plot causes
20. 20
(-)ValueCapture(+)
(-) Maturity of the Organization (+)
Reck and Long, ISM, 1988
1.- Passive
Everybody purchase
Ad–hoc Chaotic
Savings
3% - 5%
2.- Purchasing
Processes. Procedures. Main
Suppliers Evaluation
Cost Improvements
8% -12%
3.- Sourcing
Expend Analysis, SRM,
Category Management
Capture Productivity
4.- Resources
Supplier integration in Value
Generation
Top Line Impact
Capture Innovation
5.- Value Chain
Overlapping Value Chains
Extended Enterprise
Supply Chain Organization Maturity Assessment
Maturity
Sophistication
Professionalism
Multifunctional
Contribution to
results
How mature is your Supply Chain Organization?
21. 21
Opportunities Identification
In less mature organizations:
Bigger potential savings…
• Supply Chain function not clear “everybody purchase”
• High number of suppliers and families per buyer
• Buyers do other things (logistics, meetings, proyect managent,
chase approvals, suppliers audits). Back-office tasks. No time
to save money or Improve Cash Flow
• High level of purchases through distributors instead of from
Original Equipment Manufacturers (OEM)
• Low level of international purchases
• Low influence of Supply Chain in Supplier selection
24. 24
6.1 Strategic Sourcing: Expend Analysis 7 Steps
1.- Identify all possible
sources of information about
expend:
ERP PO´s, BI Analysis,
Control and Reporting,
Invoicing vs Order, From
different departments and
OU´s, Warehouse outputs
($)…
2.- Gather and
consolidate all data (Core
file) Challenging task:
Data may come from
different sources,
languages, currencies…
3.- Cleanse the data:
Find and Fix
Examples: Fees, Intra
company Costs, Wrong
Names, Construction Costs,
Standardize data for and
easy to use access (Pivot
Tables) Core File
4.- Group Suppliers,
Mothers, Sisters
companies, find Name
changes , M&A’s …
5.- Categorize: Classify
expend by family, category,
subcategory, purchasing
group, etc.
Need to be able to see
where the money goes to:
Office supplies, travel,
marketing, direct and
indirect expenses, Opex
and Capex...
6.- Analyze the
expend:
Make sure that all
negotiated contracts are
best in nclass and
performing.
Buy from preferred
suppliers
Optimize (reduce) number
of suppliers per family…
7.- Repeat:
Running an Expend Analysis
means also to start identifying
saving opportunities.
It is absolutely needed
constantly to update the data,
check that contracts are in
place and performing, preferred
suppliers are used and identify
new saving opportunities
25. 25
6.2 Strategic Sourcing: Category Management
BottomlineImpact
Profit&Loss
Highexpense(€)
(Costsusmoney)
Supply Chain Risk
(Can stop our business)
i. e. Plane on Ground or Unplanned Plant stoppage
Strategic
Selling Power
Bottlenecks
Bottlenecks
Leverages
Purchasing power
Non Criticals
Commodities
Few
Suppliers
Many
Suppliers
Segmentation of Suppliers / Categories
Kraljic Matrix (Boston Consulting Group):
26. 26
6.2 Strategic Sourcing: Category Management
Supply Chain Risk
Strategic
Selling Power
Bottlenecks
Bottlenecks
Leverages
Purchasing power
Non Criticals
Commodities
1.- Keep
Alliances 2.- Accept
Alliances
3.- Break
Relationship
4.- Accept
Dependence
5.- Reduce
Dependence
Reduce
Risks
Change Spec.
Or Supplier
6.- Leverage
Purchasing Power
7.- Develop
Long Term
Alliance
8.- Group
Suppliers
9.- Optimize
Back-office
Kraljic Matrix (Boston Consulting Group):
Segmentation of Suppliers / Categories
<<
BottomlineImpact
Profit&Loss
Highexpense(€)
(Costsusmoney)
Supply Chain Risk
(Can stop our business)
i. e. Plane on Ground or Unplanned Plant stoppage
27. 27
6.3 Strategic Sourcing: Supply Base Consolidation
Pareto Principle: “Trivial Many, Crucial Few”
• Percent of active suppliers accounting for 80%* of total spend.
• This KPI measures the current state of supplier consolidation
and activity within supply base from the previous year.
• New product introductions and M&A (Mergers and Adquisitions)
may impact this KPI. Changes in sales within the product
portfolio may have an effect as well
• This KPI drives efficiencies within the Supply Chain organization
and drives down costs/PO
*: 80% is just an example, but it is generally accepted the 80/20 rule
28. 28
6.3 Strategic Sourcing: Supply Base Consolidation
• Pareto Analysis
Here is where
money $ goes
Here goes the
Non Value Added
effort $$$ Waste
Toyota MC Europe Quality Director and Paco RdM :
“I don´t know how many suppliers you have but I am sure they are too many…”