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10KPI (KeyPerformanceIndicators)

Key performance indicators (KPIs) are metrics that measure performance against targets for important business parameters. KPI management involves defining the metrics, creating reports on performance, and regularly reviewing performance. Owners are assigned for each KPI metric and are responsible for ensuring accurate data and reviews. Examples of common KPIs include customer satisfaction, defects per million, on-time delivery, occupational safety metrics, quality metrics like first-time throughput, and financial metrics like cost per part.

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Mostafa Abd El Alem
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222 views8 pages

10KPI (KeyPerformanceIndicators)

Key performance indicators (KPIs) are metrics that measure performance against targets for important business parameters. KPI management involves defining the metrics, creating reports on performance, and regularly reviewing performance. Owners are assigned for each KPI metric and are responsible for ensuring accurate data and reviews. Examples of common KPIs include customer satisfaction, defects per million, on-time delivery, occupational safety metrics, quality metrics like first-time throughput, and financial metrics like cost per part.

Uploaded by

Mostafa Abd El Alem
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Key Performance Indicators (KPI)

- What is it? -
The PAC Group
Improving Competitiveness through Engineering & Management Solutions 1

Key Performance Indicators (KPI’s) are a set of Metrics which show


graphically the Actual Performance against pre-defined Targets of key
Business Parameters.

It provides the proof that the related strategies and/or actions deliver the
required results.

KPI Management comprises of:


 KPI Metric
 KPI Report
 KPI Review

Version: 2.0 CM 10 Prepared by The PAC Group


Key Performance Indicators (KPI)
- What does it look like (concept)? -
The PAC Group
Improving Competitiveness through Engineering & Management Solutions 2

Scrap
350 Grease MC
broke dow n
300
New
250 Operator Trend line
Scrap

200
Target line
150
100
Target is 50
50 Actuals
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

KPI Metric

Version: 2.0 CM 10 Prepared by The PAC Group


Key Performance Indicators (KPI)
- What does it look like (concept)? -
The PAC Group
Improving Competitiveness through Engineering & Management Solutions 3
Owner: Mr Project Manager
EGYPTIAN COMPANY FOR THE BEST STAMPINGS YOU CAN BUY Status: YELLOW
Reporting Date: 2 Oct

Performance Influences:
S c ra p
Trained and Certified Operators
350
300 Effective TPM process
250 Effective Problem Solving Process
Scrap

200
Place here your metric
150 Trend
100
50 A ctu a ls Target
0
Ja n Fe b Mar Apr May Ju n Ju l Aug Sep O ct No v De c

# Action Champion Start Status

1 Training program is behind. Need to approve 4 extra back-up A. Hussein Mar 65% Operators trained.
people. Target to date was 90%.

2 Budget approval for new Grease machine needs to be pulled S. Piastres Sep Grease machine still
forward by 6 months keeps braking down

KPI Report
Version: 2.0 CM 10 Prepared by The PAC Group
Key Performance Indicators (KPI)
- Who participates, who owns it? -
The PAC Group
Improving Competitiveness through Engineering & Management Solutions 4

The KPI is owned by the respective Department Manager.

The people who are involved in the process to the Metric are involved.

Version: 2.0 CM 10 Prepared by The PAC Group


Key Performance Indicators (KPI)
- How is it Taught and Implemented? -
The PAC Group
Improving Competitiveness through Engineering & Management Solutions 5

 Leadership to define which Metrics (and owner) are key for managing the
Business.

 Owner to define and implement a robust process which ensure the Metrics
Report with correct and accurate data is available at the required time.

 Relevant associates trained/instructed in line with the process requirements.

 Metrics to be posted, reviewed and decisions and/or issues acted upon as


appropriate.

Version: 2.0 CM 10 Prepared by The PAC Group


Key Performance Indicators (KPI)
- What are the Success Factors? -
The PAC Group
Improving Competitiveness through Engineering & Management Solutions 6

 Identify what is really a Key Business Parameter, internal or external. (not just
something you can measure or something you happen to have data for)

 KPIs should relate to the Organizational goals (leading and lagging indicators)
 Have clearly assigned owners of Metrics, people who have the responsibility to
deliver the required performance

 Agree on what, how and where in the process to measure

 To have robust action plans in place which will improve the trend

 To have regular KPI reviews with action plans

 Not too many KPI’s (start with 5-6)


 Robust Problem Solving process in place

Version: 2.0 CM 10 Prepared by The PAC Group


Key Performance Indicators (KPI)
- How do we Measure Performance? -
The PAC Group
Improving Competitiveness through Engineering & Management Solutions 7

 Meeting the goals set within the organization


 KPIs are actively used for making decisions (if not, we measure something
that apparently is not important)

 Having up-to-date KPI’s

Version: 2.0 CM 10 Prepared by The PAC Group


Key Performance Indicators (KPI)
- Examples -
The PAC Group
Improving Competitiveness through Engineering & Management Solutions 8

Customer Satisfaction Defects, PPM


On Time Delivery
CA Reports

Occupational Health & Safety Injuries


Lost Time

Quality & Manufacturing First Time Through (FTT)


Overall Equipment Efficiency (OEE)
Man-Hours per Part

People Training Hours

Cost Cost per Part

Marketing & Sales Market Share


Volume per Area

Version: 2.0 CM 10 Prepared by The PAC Group

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