Performance indicator

The term Key Performance Indicator (KPI ) or key performance indicator referred to in the Business Administration indicators, against which progress or the degree of performance can be measured in terms of its main objectives or critical success factors within an organization and / or determined (see also operating performance measure ).

For example, examines the overall equipment effectiveness as a possible key performance indicator shows the actual usage of a machine with respect to its theoretically possible.

Used the term beyond in the telecommunications / networking technology for better processing of basic data of performance management, IT Infrastructure Library framework and in the context of the Balanced Scorecard.

Examples

Important KPIs from the service industry are sales per man-day fakturiertem, revenue per customer and employee utilization rate (number of days billed persons in relation to the planned work days ). In the field of information technology, the measure Mean Time Between Failures is a known quantity. For measuring the success of projects within the framework of project portfolio management, the average project cost is measured, for example.

KPIs for Manufacturing Execution Systems

Survey

In recent years, widespread public discussion, that a high proportion in the optimization of production processes in the concrete organizational processes is for the use of the means of production. Because the usual planning processes, which are usually located in an Enterprise Resource Planning (ERP) take, usually no consideration to disruptive events such as machine or supplier defaults. Here now establish the so-called Manufacturing Execution Systems ( MES) as a link between ERP and the actual execution of production ( works insert and automation).

For the KPIs that are relevant in this area, similar claims, such as for the MES apply itself In contrast to the ERP in this case the real-time claim is often highlighted. It is therefore important to respond to an event immediately and to make its further processing does not depend on contingencies or sluggish known procedures. This means for the KPIs that they are determined in accordance quickly and from actual measurements. A fact -based process control also responded immediately and thus leads to the fastest possible troubleshooting. It is conceivable to make here about self-optimizing systems. Of course targeted optimizations suggestion and feedback are always possible and offer, because of the short reaction times, especially in this area. KPIs make the whole process transparent.

MES KPIs in standardization

In AK3 the DIN Working Committee 060-30-05 AA of the Engineering Standards Committee, the VDMA 66412-1 was developed. It provides details about 20 KPIs for MES. Their functions are explained and defined the formulas to calculate. This VDMA is a great success, it is so far the meistabgerufene VDMA at all.

Meanwhile, the contents of the VDMA standard sheet 66412-1 were also included in the international standardization. In the newly formed WG9 of TC184/SC5 the topic " Key Performance Indicators for Manufacturing Operations Management " edited in the standard series ISO 22400. So far, four parts are planned, with the Part 2 content corresponds to the VDMA and already in the distribution CD ( Committee Draft ) is present. In CD ISO 22400-2 are additional KPIs, as a contribution of other countries contain.

The ISO standardization started successfully. It work the 9 countries China, Germany, France, Japan, Korea, Austria, Sweden, Spain and the USA under German management to stipulations on KPIs and their transport and use in the MES environment. In the WG9 also the MESA (International ) works with. The WG9 will hold their meetings in the various countries symposia on the subject of KPI standardization before industry representatives.

KPIs in the field of web analytics

With increasing proliferation of the Internet, the generation of profits through the online channel has become more important. Web analytics tools help to optimize marketing campaigns and websites. For the measurement of success and failure of key performance indicators should be consulted for web analytics. In the U.S., Eric T. Peterson commented on the issue of key performance indicators in the area of ​​Web Analytics in 2005. Goal is to accurately identify the five to seven of the hundreds of reports that are critical to the company's success. Here, Peterson distinguishes between four business models:

• Online shops,
• Content sites as an advertising medium,
• B2B websites and
• Support sites.

Important key performance indicators for an online store, for example, the average order value or the discontinuation rate in the ordering process. Content sites offer editorial content and are financed through advertising. This mainly includes the number of contacts ( page views ) and the proportion of repeat visitors. For B2B sites is an important key performance indicator is the number of completed contact forms. Support websites have the task to relieve call center. An important KPI is the number of PDF downloads that help the visitors going to answer questions themselves and reduce call center costs. Peterson describes in "Site Measurement Hacks " KPIs that are differentially applied to these four business models. In German-speaking countries, the model of Peterson in the literature by Reese (2008) and Amthor / Brommund (2010) is taken up and discussed.

Implementation of KPIs

As part of the implementation of KPIs is first determined which business processes should be examined. The identified processes are then broken down into components within the process chain. The individual modules can now be considered as isolated operations within the process chain. This makes it possible to perform measurements for each step.

The dimensions in which the measurements are pre-determined at the identification of the steps. On them is based the definition of KPIs. This correlated variables is of great importance, as can be revealed by this crucial dependencies in the process chain.

If appropriate benchmarks for each KPI has been defined, in a last step, a monitoring tool is implemented. This is an overview of all processes are possible.