Tuesday, May 20, 2008

Process performance indicators


Marketing Process
Annual Value of Sales Promotion expenses / Value of Enquiries received

Sales Process
Conversion Ratio = Orders received Value / Enquiries received Value
Hit Ratio = Orders received Value / Offers sent Value

Purchase Process
Annual Purchases Value / Sales Value
Incoming Process Rejection Value / Total Incoming Inwards Value
No. of Late receipt of Supplies / Total No. of Supplies received


Internal Audit Process
No. of OFI's identified / No. of audit hours


Management review Process
No. of problems resolved / No.of problems presented to CEO


Training Process
Increase in Competency index of staff and workers / No. of training man hours


Corrective Action Process
No. of NC's effectively closed / No. of NC's registered


Casting Process
Value of castings rejected / Value of castings casted


Machining Process
Value of products rejected post machining because of machining errors / Value of products machined

Assembly Process
Value of products rejected because of incorrect assembly / Total value of Assembled products

Quality Control Process
No.of customer complaints for product quality / No.of deliveries made

Production Process overall
No. of late deliveries / No. of deliveries made

Packing Process
No. of shipments made resulting in transit damage / Total No. of shipments made

Delivery Process
No. of instances of wrong delivery / Total No. of deliveries



Key performance indicators

more KPI's



Key Performance Indicators (KPI) are financial and non-financial metrics used to help an organization define and measure progress toward organizational goals[1]. KPIs are used in Business Intelligence to assess the present state of the business and to prescribe a course of action. The act of monitoring KPIs in real-time is known as business activity monitoring. KPIs are frequently used to "value" difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. KPIs are typically tied to an organization's strategy (as exemplified through techniques such as the Balanced Scorecard).

The KPIs differ depending on the nature of the organization and the organization's strategy. They help an organization to measure progress towards their organizational goals, especially toward difficult to quantify knowledge-based processes.

A KPI is a key part of a measurable objective, which is made up of a direction, KPI, benchmark, target and time frame. For example: "Increase Average Revenue per Customer from £10 to £15 by EOY 2008". In this case, 'Average Revenue Per Customer' is the KPI.

KPIs should not be confused with a Critical Success Factor. For the example above, a critical success factor would be something that needs to be in place to achieve that objective; for example, a product launch.

Contents
1 Identifying indicators
2 Marketing KPIs
3 KPIs for Manufacturing
4 Categorization of indicators
5 Problems
6 See also
7 References
8 External links
9 Further reading
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Presentation of KPI's for management review












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