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Key-Performance-Indicators.pdf
- 1. Key Performance Indicators Prepared by Dr. AhmedHalim DBA Horizons University (in progress), MBA ESLSCA Business School. Based on the best practices proposed by the KPI Institute.
- 2. Definition of 'KeyPerformance Indicators - KPI‘ or “Key Success Indicators (KSI)” A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs vary between companies and industries, depending on their priorities or performance criteria. What is a KPI
- 3. Which of thefollowing can be considered as a KPI? 1. Production cost analysis forecast. 2. Market research report 3. Rework and fault finding 4. Delivery efficiency 5. Quality services KPIs vs other performance evaluation criteria
- 4. Which of thefollowing can be considered as a KPI? 1. Production cost analysis forecast. Per cent production cost variance (estimate vs actual) 2. Market research report Per cent market research report meeting all specifications 3. Rework and fault finding # Average rework hours per items 4. Delivery efficiency $ Cost per order delivery, # average delivery time per order 5. Quality services per cent defect rate KPIs vs other performance evaluation criteria
- 5. 1. Goal 2. KPI 3.Initiative 4. Metric 5. Milestone 6. Mission Statement 7. Program 8. Objective 9. Target 10. Task 11. Value Driver What is a KPI 80% # Employees % Customer Satisfaction Customer Service Development Program Complete 50% of the trainings by 30 June Identify key competencies to improve for Customer Service representatives Integrity Increase customer satisfaction Growth for the business Quality To be the world’s leading company, focused on maximizing the value we provide for our stakeholders Customer Service Training To support long-term client partnerships by delivering high quality services
- 6. What is aKPI % Employee satisfaction $ Turnover Finalize project by 31 December # Clients from referrals # Employees % Projects delivered on time and on budget Quality % Defect rate $ Budget Increase market share to 28% # Employees % Employee turnover % Orders delivered on time # Employee age % Budget variance $ Training hours per FTE # Working hours per year $ Operating budget % Client satisfaction # Air temperature # Time to process client requests $ Revenues
- 7. Case Study (copy distribution) Objectivevs. Key/Strategic Objective
- 8. KRAs (Key ResultsAreas) KPI PI Strategic objectives Measures Key objectives What is a KPI …4……….. …3……….. …2……….. ..1……
- 9. Exercise (KRA, KPI,PI, Measure) Assign each of the following to the four categories illustrated in the graph a. # employees b. # working hours per R&D employee c. # training hours per employee d. invent new products that address customers needs. e. % Customer satisfaction with new products f. % adherence to lab maintenance schedule g. # innovative products per year. 4. Measure 3. PI 2. KPI 1.KRAs Strategic Objective: Provide innovative solutions for customers.
- 10. Terminology Standards KPIs Start with Objectives Startwith Initiatives Start with Noun Verb $ = Value of # = Number of % = Percent of Increase customer satisfaction % Customer satisfaction $ Revenue per client Delivery system optimization
- 11. SMART Objectives Decomposed Objectiv e •Improveproduction schedule attainment KPI •% Production schedule attainment Target •95% Time •By financial year end Owner •Production Manager
- 13. Value added byKPIs Improvement Focus Clarity Communication L e a r n i n g E n g a g e m e n t
- 14.