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 :
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- Quality – Safety – Environment
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- Cost
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- Delay
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An indicator must be SMART
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- Significant : The indicator must depend on an employee or team. It must be mastered by them, and only by them.
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- Measurable : The measurement should be unquestionable and recognized by all. It should not there be a proxy.
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- Acceptable : The goal must be attainable. Indicators must be accepted by employees.
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- Responsible : The head should be clearly identified.
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- Time-bound : It must there be clear deadlines, if necessary with intermediate dates.
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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.[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]