KPI

Key Performance Indicator

A Key Performance Indicator (KPI) is information or set of information that allows a decision maker to control a situation. It should allow to measure progress made or to be made to achieve a goal.

We will discuss concepts, criteria and major key performance indicators.

3 concepts

  • Objectives : Aim or purpose set
  • Means : Available resources (material, human, financial)
  • Résults : State attainment

3 criteria

  • Efficiency : Degree of achievement
  • Effectiveness : Quality of achievement
  • Effectiveness : Degree of use of resources

 

3 majors KPI

Industrial indicators are focused on 3 key areas :

  • Quality – Safety – Environment
  • Cost
  • Delay

 

An indicator must be SMART

  • Significant : The indicator must depend on an employee or team. It must be mastered by them, and only by them.
  • Measurable : The measurement should be unquestionable and recognized by all. It should not there be a proxy.
  • Acceptable : The goal must be attainable. Indicators must be accepted by employees.
  • Responsible : The head should be clearly identified.
  • Time-bound : It must there be clear deadlines, if necessary with intermediate dates.

An indicator is represented by rates, quotients, percentages. To the extent possible, it is not represented by the raw data.

A key performance indicator must be updated regularly and as quickly as possible in relation to the measurement.

You can download on our website an utility to create key performance indicators.