Key performance indicator
The term Key Performance Indicator ( KPI ) and performance factor referred to in the business administration indicators , against which progress or performance levels in relation to important targets or critical success factors can be measured within an organization and / or determined (see also economic indicator ).
For example, the overall system effectiveness as a possible key performance indicator examines the actual utilization of a machine compared to its theoretically possible.
The term is also used in telecommunications / network technology for better processing of basic data for performance management , in the IT infrastructure library framework and in connection with the balanced scorecard .
Examples
Important KPIs from the service industry are the turnover per person-day billed , turnover per customer and the workload rate (number of person-days billed in relation to the planned working days). In the field of information technology , the key figure mean time between failures is a well-known quantity. In order to measure the success of projects in the context of project portfolio management , the average project costs are measured, for example.
Manufacturing Execution Systems KPIs
Overview
For several years it has been widely and publicly discussed that a high proportion of the optimization of production processes lies in the specific organizational processes for the use of production resources. Because the usual planning processes, which are usually based in an Enterprise Resource Planning (ERP) , usually do not take disruptive events such as machine or supplier failures into account. The so-called Manufacturing Execution Systems (MES) are now establishing themselves as a link between ERP and the actual execution of production (worker deployment and automation).
For the KPIs that are relevant in this area, similar requirements apply as for the MES itself. In contrast to the ERP, the real-time requirement is often emphasized. It is therefore a matter of reacting immediately to an event and not making its further processing dependent on randomness or known sluggish procedures. For the KPIs, this means that they are determined quickly and from current measured values. A process control based on this also reacts immediately and thus leads to the fastest possible troubleshooting. It is conceivable to use this to design self-optimizing systems. Of course, targeted optimizations through stimulation and feedback are possible at any time and are particularly suitable in this area due to the short response times. KPIs make the entire process transparent.
MES KPIs in standardization
In AK3 of the DIN Working Committee AA 060-30-05 of the Mechanical Engineering Standards Committee , the VDMA standard sheet 66412-1 was drawn up. It describes around 20 KPIs for MES. Their functions are explained and the formulas for calculation are specified.
In the meantime, the contents of the VDMA standard sheet 66412-1 have also been included in the international standardization. In the newly founded WG9 of the TC184 / SC5, the subject of "Key Performance Indicators for Manufacturing Operations Management" is dealt with in the ISO 22400 series of standards . So far, 4 parts are planned, with part 2 corresponding to the VDMA standard sheet and already available for distribution as a CD ( Committee Draft ). In CD-ISO 22400-2, KPIs are also included as contributions from other countries.
ISO standardization also got off to a successful start. The 9 countries China, Germany, France, Japan, Korea, Austria, Sweden, Spain and the USA are working under German management on specifications for KPIs and their transport and use in the MES environment. MESA (International) also works in WG9 . At its meetings in the various countries, WG9 will hold symposia on the subject of KPI standardization in front of industry representatives.
KPIs in the field of web analysis
As the Internet became more widespread, generating profits through the online channel became more important. Web analysis tools help to optimize marketing campaigns and websites. To measure success and failure, KPIs are also used for web analysis. In the USA, Eric T. Peterson comments on the topic of KPIs in the area of Web Analytics 2005. The aim is to identify exactly those five to seven from the hundreds of reports that are decisive for the company's success. Peterson distinguishes between four business models :
- Online shops ,
- Content websites as advertising media,
- B2B websites and
- Support websites.
Important KPIs for an online shop are, for example, the average order value or the abandonment rate in the ordering process. Content websites offer editorial content and are financed through advertising. For these, the number of contacts ( page views ) and the proportion of returning visitors count above all . For B2B websites, an important KPI is the number of completed contact forms. Another important KPI is the number of PDF downloads on support websites, which help visitors to answer questions themselves and thus reduce call center costs. Peterson describes in "Website Measurement Hacks" KPIs that are applied to these four business models to different degrees. In German-speaking countries, Peterson's model is taken up and explained in the literature by Reese (2008) and Amthor / Brommund (2010).
Implementation of KPIs
As part of the implementation of KPIs, it is first determined which business processes are to be examined. The identified processes are then broken down into building blocks within the process chain. The individual modules can now be viewed as isolated work steps within the process chain. This makes it possible to carry out measurements for each individual work step.
The dimensions in which the measurements are made are already determined when the work steps are identified. The definition of the KPIs is based on them. Correlating variables are of great importance, as they can be used to reveal decisive dependencies in the process chain.
When suitable benchmarks have been defined for the individual KPIs, a monitoring tool is implemented in the last step. This should enable a complete overview of all processes.
Norms and standards
- DIN EN 15838 (2010-02): Customer contact centers - Requirements for service provision (see Appendix A Mandatory KPIs and Appendix B Recommended KPIs)
Web links
- A free, extensive library of key performance indicators (registration required)
- Relevance of key performance indicators for web analytics
Individual evidence
- ↑ Eric Peterson's Blog at Web Analytics Demystified . Retrieved September 24, 2013.
- ^ Eric T. Peterson, Web Site Measurement Hacks: Tips & Tools to Help Optimize Your Online Business . O'Reilly Media, 2005, ISBN 978-0-596-00988-5 , pp. 360-386 .
- ↑ Frank Reese: Web Analytics: So that traffic becomes sales . Business Village Verlag, 2008, ISBN 978-3-938358-71-9 , Key Figures - Made to Trade, p. 37-102 .
- ↑ Axel Amthor, Thomas Brommund: More success through web analytics . Hanser-Verlag, 2010, ISBN 978-3-446-42139-4 , Success factors for websites, p. 95-128 .
- ↑ Case Study: Key Performance Indicators in Asset Management. Anadeo Consulting ( PDF ( Memento of the original from March 9, 2014 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. )
