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Human Resources/Non-threatening KPI

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Question
I would like to know more about this concept while formulating KPIs for my current role. With my limited knowledge, I know that these help in setting targets which a person can achieving without being pressurized by his superiors.
These also include which are related to the efforts being undertaken which may or may result in any outcome and are also difficult to measure.

These are incorporated to incorporate some personal aspirations and bring a sense of real job engagement.

Please throw more light on how and which type of KPIs are these and how we can incorporate them in the Balanced Score card approach. These are not to be considered as the Learning & growth aspect of BSC.

Answer
WHAT  ARE  KRA  ---KPA --- KPI .

Key Result Areas [KRA]

“Key Result Areas” or KRAs refer to general areas of outcomes or outputs for which the  department's  role  is responsible. A typical role targets three to five KRA.

Value  of  KRAs.

Identifying KRAs helps individuals: • Clarify their roles • Align their roles to the organisation’s business or strategic plan • Focus on results rather than activities • Communicate their role’s purposes to others • Set goals and objectives • Prioritize their activities, and therefore improve their time/work management • Make value-added decisions

Description  of  KRAs

Key result areas (KRAs) capture about 80% of  the  department's  work role. The remainder of the role is usually devoted to areas of shared responsibility (e.g., helping team members, participating in activities for the good of the organisation).
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KEY   PERFORMANCE  AREAS.[KPA]

When  the  key  results  area   is  large,
it  is  broken  into   manageable   areas  for managing/  evaluation.

these  sub-sections  of   KRAs  are  called  KPA

example

KRA = RECRUITMENT/ SELECTION
KPA 1= RECRUITMENT
KPA 2 = SELECTION
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KEY   PERFORMANCE   INDICATORS [ KPi]

To manage each KRA/ KPAs, a set of KPI are set .

KRA and hence KPI is attributed to the department /INDIVIDUAL   which  
can have effect on the business results and is
self measured where applicable.
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FIRST  STEP
review  the  company's
*VISION STATEMENT
*MISSION STATEMENT
*CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY.
FOR  THE  BUDGET  PERIOD,  WHICH  IS  USUALLY  12 MONTHS.

THIS  IS  A  MUST  STEP,  AS  NO  KPi  CAN  BE  SET,
WHEN  IT  IS  NOT  ALIGNED  WITH  THE  CORPORATE  OBJECTIVES.
========================================================
SECOND  STEP,
TAKE   EACH  DEPARTMENT ----ONE  AT  A  TIME.
review,  the
*DEPARTMENT   OBJECTIVES
*DEPARTMENT  STRATEGIES
* DEPARTMENTAL PLANS.
FOR  THE  BUDGET  PERIOD,  WHICH  IS  USUALLY  12 MONTHS.
=====================================
THIRD  STEP
REVIEW  THE  JOB  DESCRIPTIONS  OF  THE  DEPARTMENT.
START  WITH  THE  HEAD  OF  THE   DEPARTMENT  HEAD.
-review  the  job description.
-from  the  job  description,  pick   5  key  areas   which  will impact
on  the  results  of  the  department.
-weightage  the  5  key  areas   according  to  the  importance
and  the weightage  must  add  upto   100.
-IF  REQUIRED, YOU  CAN  BREAK  THE  KRAs
into  KPAs---if  the  KRAs   are  large.
-then develop   the   KPi----which  the  key  performance  indicators
based  on  the  corporate  / department  objectives.
To manage each KRA/ KPA , a set of KPI are set .

KRA and hence KPI is attributed to the person who
can have effect on the business results and is
self measured where applicable.
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YOU  CAN  HAVE  ACTIVE / PASSIVE  KPiS.
I  HAVE  LISTED  FEW  BELOW  FOR  SUPPLY CHAIN  ETC


Employee Productivity
•   average sales turnover per employee
•   average profit per employee
•   value added per employee
Employee Cost
•   employment costs as % of sales turnover / profit
•   employment costs per employee
•   employment costs as % of operating costs
Employee Turnover/Loyalty
•   % of employees that leave the organization in a given time period
•   average length of service
Remuneration and Benefit Benchmark
•   average salary paid vs. competition / industry and geographical norms
•   benefits provided vs. competition / industry and geographical norms
Willingness of Employees to Recommend the Company as an Employer
•   % of employees who are willing to recommend the organization as an employer to a friend
•   % of applicants / appointees that have received recommendations from current employees
Recruitment Process
•   average lead time to recruit employees
•   average cost of recruiting off employees
•   average number of applications received per vacancy
Skills/Competencies Availability
•   average lead time to develop skills/competencies that are required
•   average lead time to close skills/competencies gaps
•   % of required skills/competencies available within the organization
Employee Satisfaction with Training Program
•   % of training course participants that are satisfied / highly satisfied with the course or program
•   % of training course participants that are dissatisfied / highly dissatisfied with the course or program
Training Budget
•   expenditure on training and staff development per employee in a given period
Availability of Training Courses
•   % of training courses that match organizational requirements
•   % of training courses that match employee's personal requirements
•   average number of courses requested, but not offered

Impact of Training
•   % difference in the rate of productivity before and after training
•   % difference in the defects rate before and after training
•   proportion of training programmers resulting in productivity improvements
•   proportion of training programmers resulting in quality improvements (reduction in defects)
Employee Development
•   % of employees that develop Individual Development Plan
•   % of employees that fully execute their Individual Development Plan
Employee Career Coaching
•   % of employees that participate in career coaching program
•   % of employees that have been assessed in Assessment Center
Internal Promotion Opportunities
•   average lead time to promotion
•   average lead time for promotion from bottom grade to senior management
•   % of managers / senior managers who have been promoted internally


Employee Motivation
•   % of employees that are committed to the organizational goals and objectives
•   % of employees that are considered to be 'highly motivated'
Employee Satisfaction
•   Employee Satisfaction Survey Index



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PROCUREMENT  AND  SUPPLY

PROCUREMENT  AND SUPPLY KPI
Key Performance Indicators
Average time to procure
Average time to procure an item. Time lag between request for procurement and signing of contract or purchase.
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% of invoices disputed
Percentage of invoices disputed.
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Cycle Time of Purchase Order
How many days have you taken to prepare a Purchase order and submitted to Supplier?
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% of payable invoices without purchase order
Percentage of payable invoices that have not been matched to a purchase order.
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% of procurement requests satisfied by preferred suppliers
Percentage of procurement requests satisfied by the preferred supplier list.
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% of RFPs that needed to be improved based on supplier responses
Percentage of Request for Proposals (RFP) that needed to be improved based on supplier responses.
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Average number of responses received to RFPs
Average number of responses received to Request for Proposals (RFP).
% of procurements in compliance with standing procurement policies and procedures
Percent of procurements in compliance with standing procurement policies and procedures.
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% of key stakeholders satisfied with suppliers
Percentage of key stakeholders satisfied with their suppliers.
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% of suppliers that are responsible for 80% of spend
Percentage of suppliers that are responsible for 80% of spend on these suppliers.
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Key Performance Indicators
Average number of requests for information to suppliers for orders
Average number of requests for information (RFI) for e.g. price, time to deliver, etc. to distinct suppliers for orders.
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% of user complaints due to contracted services
Percentage of user complaints on contracted services as a percentage of all user complaints.
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% of (major) suppliers subject to monitoring
Percentage of (major) suppliers subject to monitoring.
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% of vendor services delivered without agreed service targets
Percentage of vendor services delivered without agreed service targets.
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Logistics,
Proportion of purchases made from contracts/frameworks
Proportion/percentage of purchases made from contracts/frameworks.
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Procurement
% of (preferred) suppliers not used in last 12 months
Percentage of (preferred) suppliers not used in last 12 months (or any other given period).
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Procurement
% of R&D cost related to product improvements and extensions
Percentage of R&D cost related to product improvements and extensions.
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R&D
% of R&D cost related to new product development
Percentage of R&D cost related to new product development.
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R&D
% of R&D resources by total resources
Percentage of R&D resources (in FTE) by total resources (in FTE)
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R&D
% of undamaged goods after shipping/transportation
Percentage of undamaged goods after shipping/transportation.
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Shipment,
% of suppliers screened on human rights
Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.
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Procurement
% of receipts of formal bids & proposals via the Internet
Percentage of receipts of formal bids & proposals via the Internet.
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Procurement
% of EDI transactions
Percentage of orders received via electronic data interchange, EDI.
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Supply chain
% of emergency purchases
Percentage(%) of emergency purchases done over a month / period to the total purchases during the same period.
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Procurement
% of orders/items arrives at the right location
Percentage of orders/items arrives at the right location.
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Procurement
% of total spend via e-procurement
Percentage of total spend via e-procurement.
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Procurement
% of active suppliers that are e-procurement enabled
Percentage of active suppliers that are e-procurement enabled.
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Procurement
% of total spend with diversity suppliers
Percentage of total spend with diversity suppliers.
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Procurement
% of total procurement spend onshore
Percentage of total procurement spend onshore.
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Procurement
% of total procurement spend offshore
Percentage of total procurement spend offshore
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Procurement
Managed procurement spend outsourced as a % of total spend
Managed procurement spend outsourced as a percentage of total spend.
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Procurement
% of total spend managed/controlled by procurement
Percentage of total spend managed/controlled by procurement.
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Procurement
Procurement employees as % of total employees
Procurement employees as a percentage of total company employees.
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Procurement operating expense per procurement employee
Procurement operating expense per procurement employee. ---------------------------------------------------------------
Procurement
Procurement operating expense as % of total spend
Procurement operating expense as a percentage of total spend.
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Procurement
Procurement operating expense as % of sales
Procurement operating expense as a percentage of sales.
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Procurement
Total procurement spend as % of sales
Total procurement spend as a percentage of sales.
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Procurement
% of suppliers that affirmed business code of conduct
% of suppliers that affirmed business code of conduct
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Procurement,
Number of active suppliers per supply employee
Number of active suppliers per supply employee.
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Procurement
Cubic meters per 1,000 packages
Cubic meters per 1,000 packages. ----------------------------------------------------------------------
Procurement
Average cycle time for purchase order for direct goods
Average cycle time (e.g. in days) from requisition approval to purchase order placement for direct goods.
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Procurement
Average cycle time for purchase order for indirect direct goods
Average cycle time (e.g. in days) from requisition approval to purchase order placement for indirect goods.
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Procurement
% of logistics outsourcing
Percentage of logistics outsourcing (based on for example labour or costs).
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Procurement
Proportion of spend under contract
Percentage of spend under contract.
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Procurement
Production schedule attainment
Percentage of production schedule attainment.
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Procurement
% of direct materials sourced internationally
Percentage of direct materials sourced internationally.
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Procurement
Mean-time between failure (MTBF)
The average time between equipment failures over a given period i.e. the average time a device will function before failing. It is the reliability rating indicating the expected failure rate of equipment.
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Procurement
Average size of discounts of items
Average size of discounts in procurement of items.
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-Procurement,
Defects per million opportunities (DPMO)
DPMO is a Six Sigma calculation used to indicate the amount of defects in a process per one million opportunities. To calculate: Total Number of Defects / Total Number of Opportunities for a Defect. Then multiply the answer by 1 Million.
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Procurement
Total value of orders
Total value of orders within measurement period.
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Procurement, Outsourcing
Average time difference between LOGR and LOGC
when Logistic support is required a LOGR is set to the worrk order and after completion of the logistic activity (such as finiding material master code, correcting the purchase requisition, getting quaotes or manufacturere’s part number, technical specification etc.) the planner sets LOGC (Logistic complete).
The KPI is measured as the average time difference between LOGR and LOGC for each material or service group and also for each important vendors.

Procurement
Number of non conformities during vendor inspection
Number of non conformities during inspection against a particular vendor. To measure the performance of different vendors.
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Procurement, PMBOK Procurement
Internal cycle time Receipt of material to GRN/MRR
Efficiency in warehouse operations hinge on quick turn around of activities and ensuring visibility of material tracking by creating Goods receipt note or material receipt report timely in system
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Procurement, PMBOK Procurement
Number of deliveries with past due goods issue date
Number of Deliveries where the Goods Issue date (date it should leave the premises to reach customer on time based on transit time) is equal to or less than today’s date.
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Procurement
% of slow moving products
Percentage of slow moving products. Slow moving products are those products that you may have more than “x” number of weeks worth in inventory.
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Procurement
Average cost involved with import or export transaction
Average cost involved with import or export transaction.
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Procurement, Financial ratios
Rate of material defect by causes of material itself
By total material defect due to the nature of that material, measured by the number and value of money.
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Procurement
Average age of order backlog
Average age of order backlog.
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Supply chain
Difference between tender price and actual price
Tender ability to price/estimate correctly and pridict future shifts.
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Tendering
Electrical Energy Efficiency ratio
EEER is the consumed electrical energy in kwh per ton of product
EEER=kwh/ton of product
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Procurement
Value of items stolen from inventory
Monetary value of items stolen from inventory.
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RAW  MATERIAL  INVENTORY KPI
Key Performance Indicators
Inventory Accuracy
Accuracy of the book inventory versus the counted inventory.
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% of invoices disputed
Percentage of invoices disputed.
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Freight cost per unit shipped
Calculated by dividing total freight costs by number of units shipped per period. Useful in businesses where units of measure are standard (e.g., pounds). Can also be calculated by mode (barge, rail,ocean, truckload, less-than-truckload, small package, air freight, intermodal, etc.).
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Average age of inventory
The (average) age of each product in stock. For example, product received in Jan, but remains until Aug.
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Ontime delivery and pickup [Load, stop and shipment]
% of shipments which were delivered ontime upon the total number of goods..shipments.
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Freight bill accuracy
Calculated by dividing the number of error-free freight bills by the total number of freight bills in the period. Errors can include incorrect pricing, incorrect weights, incomplete information,etc.
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Size of safety stock
Size of safety stock. Safety stock is a term used to describe a level of stock that is maintained below the cycle stock to buffer against stock-outs. Safety Stock or Buffer Stock exists to counter uncertainties in supply and demand.
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% of safety stock used
Percentage of safety stock used in measurement period. Safety stock is a term used to describe a level of stock that is maintained below the cycle stock to buffer against stock-outs. Safety Stock or Buffer Stock exists to counter uncertainties in supply and demand.
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Percentage of stock controlled SKUs
This KPI indicates the total SKUs under automatic replenishment cycle. Higher the percentage out of total SKUs means your inventory planning process is sound and chances of costly stock outs are less. This KPI is useful for continuous process industries where the demand for stock items is very erratic.
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Inventory
Percentage of duplicate stock numbers
This KPI helps to control multiple stock numbers for identical inventory. This can be found only when you have identified the total duplicates among your SKUs but you have not actioned. Once, you have identifed a multiple stock number, you have to merge the stocks to one stock number and make other stock numbers inactive for any procurement.
You can also monitor the KPI in terms of dollar value. Once you have eliminated the duplicate stock number by merging the stock and making other all but one multiple code inactive, you can exclude from the numerator. This KPI helps to monitor the progress made in eliminating the multiple stock numbers from your inventory.
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Inventory
Inventory management cost as % of gross sales
Inventory management cost as a percentage of gross sales.
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Inventory holding costs (IHC) as % of gross sales
Inventory holding costs (IHC) as a percentage of gross sales.
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Inventory
Inventory holding costs (IHC) as % of inventory value
Inventory holding costs (IHC) as a percentage of inventory value.
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Inventory
% of Inventory items incorrectly located
Percentage of Inventory items incorrectly located.
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Inventory
% of inventory items with incorrect stock balances
Percentage of inventory items with incorrect stock balances.
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Inventory
Average number of quality checks vs. target
This KPI measures the number of actual Quality Checks against targeted number. The result is a percentage.
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Inventory
Stockouts in period
Stockouts indicate where a demand cannot be met due to the absence of the required inventory.
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Inventory
Inventory lead time
Lead time is the length of time it takes to obtain inventory from suppliers.
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Inventory
Stock cover
Stock cover is the length of time that inventory will last if current usage continues.
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Inventory
Inventory Value
Inventory Value = (Average Unit Cost) x (Units of Current Inventory)
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Inventory Carrying Costs
Inventory Carrying Cost = Inventory Carrying Rate X Average Inventory Value
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Shipment
Value of obsolete stock
Value of obsolete stock — inventory items replaced by an alternative but which may still be usable (or saleable) until exhausted.
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Inventory
WIP
Work in progress : how much raw material is still in manufacturing unit
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MANUFACTURING / PRODUCTION  KPI
###########################################3
Key Performance Indicators
Mean Time to Repair (MTTR)
Average time (e.g. in hours) between the occurrence of an incident and its resolution.
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% of time sheets in need of correction/validation
Percentage of time sheets in need of correction and/or validation by submitter.
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Scrap value %
Scrap value as a percentage of production value.
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Ontime delivery and pickup [Load, stop and shipment]
% of shipments which were delivered ontime upon the total number of goods..shipments.
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Shipment,
% of orders delivered with damaged products/items
Percentage of orders delivered with damaged products/items
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% of backorders
Percentage of unfulfilled orders.
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Customer order cycle time
The average time it takes to fill a customer order.
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Fill rate
The number of items ordered compared with items shipped. Fill rate can be calculated on a line item, SKU, case or value basis.
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Average number of modifications to orders
Average number of modifications to orders for orders within measurement period.
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% of preventive maintenance cost
Percentage of preventive maintenance cost of total maintenance costs within measurement period. Preventive maintenance cost is the cost associated with maintenance carried out at predetermined intervals or other prescribed criteria intended to reduce the probability of failure or degradation of performance of equipment (or plant).
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% of maintenance hours of operating time (maintenance efficiency)
Maintenance efficiency is a measure of the maintenance effort required to deliver required performance levels from equipment (or plant).
Maintenance man hours is the actual maintenance man hours spent maintaining an item of equipment (or plant). Maintenance man hours includes maintenance wages, staff and contractor hours (preventive and corrective).
Operating time is productive time plus production delays.
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% of maintenance rework
Maintenance action that is a repeat of a previous, ineffective effort relative to all maintenance work. The work could have been ineffective due to poor workmanship, poor design, or improper procedures.
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Independent demand ratio
For manufacturers that also supply replacement parts and consumables this metric helps to define the % mix of demand for an item from independent (outside sources) vs dependent (inside sources). The ratio is calculated by dividing the unit usage for customer orders by the total unit usage of the item from all sources (work orders, sales samples, destructive testing, inventory adjustments, etc.).
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Damages as % of throughput
This is the ratio of damaged goods to actual throughput (e.g. per Truck Load).
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% of orders based on framework/standard contract
Percentage of orders based on a framework/standard contract relative to all orders.
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% of value of orders based on standard/framework contract
Percentage of the value of orders based on standard/framework contract, relative to the value of all orders.
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% of corrective maintenance cost
Percentage of corrective maintenance cost of total maintenance costs within measurement period. Corrective maintenance cost is the cost associated with maintenance carried out on a defect which has caused equipment (or plant) to be taken out of service during scheduled operating time.
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% of user complaints due to contracted services
Percentage of user complaints on contracted services as a percentage of all user complaints.
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% of shipment visibility/traceability
Shipment visibility/traceability percentage: calculated by dividing the total number of shipments via carriers with order tracking systems, by the total number of shipments sent during a period.
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% of orders delivered to customer in the committed date
Percentage of orders that are fulfilled on the customers originally scheduled or committed date.
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R& D
% of R&D cost related to product improvements and extensions
Percentage of R&D cost related to product improvements and extensions.
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R&D
% of R&D cost related to new product development
Percentage of R&D cost related to new product development.
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R&D
% of R&D resources by total resources
Percentage of R&D resources (in FTE) by total resources (in FTE)
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R&D
% of undamaged goods after shipping/transportation
Percentage of undamaged goods after shipping/transportation.
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Equipment availability %
Equipment availability = Operating Time / Planned Production Time
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Manufacturing
Equipment performance %
Equipment performance = Ideal Cycle Time / (Operating Time / Total Pieces)
or
Equipment performance = (Total Pieces / Operating Time) / Ideal Run Rate
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Manufacturing
Equipment quality %
Equipment quality = Good Pieces / Total Pieces
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Manufacturing
% of time spent picking back orders
Number of hours spent on picking back orders as a percentage of working hours.
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Manufacturing
% of schedules changed within supplier’s lead time
Percentage of schedules changed within supplier’s lead time.
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Production
Loss ratio of material per order
This is lost ratio of material per order.
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Production
Rate of damaged material by error of workers
By total material damage because of worker error, measured by the number and/or value of money.
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Production
% of goods received from 1 batch
It is a purchasing KPI that helps to reduce the number of batchs in a delivery from the supplier and that helps to release goods in less time by quality department
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Maintenance
Preventative maintenance hours as a percentage of total maintenance hours.
Preventative maintenance hours/Total maintenance hours * 100
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Maintenance
Average purchase order processing cost
Average purchase order processing cost.
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Maintenance
% of contracts using own Terms & Conditions
Percentage of contracts using own Terms & Conditions
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Manufacturing
% of direct materials sourced nationally
Percentage of direct materials sourced nationally.
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Average wage for production employees
Average wage for production employees (e.g. per day or per hour).
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Manufacturing
Raw material turns (COGS/Average raw material)
Raw material turns (COGS/Average raw material)
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Manufacturing
Work-in-Progress turns (COGS/Average value WIP)
Work-in-Progress turns (COGS/Average value WIP)
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Manufacturing
Ratio of downtime to projected operating time
Ratio of downtime to projected operating time
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Maintenance
Ratio of actual to projected unit production costs
Ratio of actual to projected unit production costs.

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Ratio of actual to design input required to produce one unit of output
Ratio of actual to design input required to produce one unit of output.
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Manufacturing
Rate of rejects
Measures the quality and uniformity of the final product.
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Manufacturing
Travel & entertainment costs as % of increased revenue
Travel and entertainment costs as a percentage of increased revenue from new orders and sales.
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Production
Schedule production activities cycle time
Average time associated with scheduling the production activities.
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Production
Production cycle time
Average time associated with the production of certain good.
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Production
Test cycle time
Average time associated with testing and trying out activities.
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Production
Finished product cycle time
Average time associated with finalizing activities, such as: package, stock, etc.
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Production
Time needed to recruit/hire/train additional labor
Amount of time required to achieve a certain substantial improvement concerning the number of employees.
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PRODUCTION
Direct Material Cost
Sum of costs associated with acquisition of raw material and support material.
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PRODUCTION
Direct Labor Cost
Sum of costs associated with payment of employees, insurances, taxes, etc.
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PRODUCTION
Direct Product Cost
Sum of costs associated with manufacturing a specific product.
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Production
% lost manufacturing capacity
Percentage of lost manufacturing capacity due to e.g. technical problems and/or failures.
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SUPPLY  CHAIN
Total supply chain management cost
Total Supply Chain Management Cost is a discrete measurement defined as the fixed and operational costs associated with the Plan, Source, Make, and Deliver supply chain processes.
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MANUFACTURING  
WIP
Work in progress : how much raw material is still in manufacturing unit
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Manufacturing
Product lead time
time taken by raw good to transform into finish product
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Manufacturing
Open change orders
Total number of change orders without a Implemented or Cancel date on the as of date. This number also includes change orders that have an Implemented or Cancel date that falls after the selected date.
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Manufacturing
Number of PM/CM Backlog items
Preventative and Corrective Maintenance Backlog trends indicate management support for maintaining equipment safety.
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Overall Machine Efficiency
OPME= percent Uptime () X Percent Salable product ()
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Production
Product price flexibility
Reflects a specific SKU adjust its COGS to meet either customer demanding reduction or enterprise self cost reduction target.
(actual Fixed COGS at a budgeting time / actual COGS) * 100
Obviously everyone would desirely suggest A class SKUs rank first on this performance measurement.
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Manufacturing
% of unfinished received items
% of items either not received or items received but pending put away
=================================
FINISHED  GOODS INVENTORY   KPI


Key Performance Indicators
Average age of inventory
The (average) age of each product in stock. For example, product received in Jan, but remains until Aug.
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Inventory
Inventory Accuracy
Accuracy of the book inventory versus the counted inventory.
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Supply chain, Inventory
Sell through %
A percentage of units sold during a period and is equal to:
Units sold divided by (units sold + on hand inventory)
This can also be described as:
Units sold divided by Beginning Inventory Qty
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Inventory
Independent demand ratio
For manufacturers that also supply replacement parts and consumables this metric helps to define the % mix of demand for an item from independent (outside sources) vs dependent (inside sources). The ratio is calculated by dividing the unit usage for customer orders by the total unit usage of the item from all sources (work orders, sales samples, destructive testing, inventory adjustments, etc.).
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Inventory
% of total stock that is not displayed to customers
% of total stock that is not displayed to customers (most applicable in certain retail sectors).
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Inventory
Percentage of stock controlled SKUs
This KPI indicates the total SKUs under automatic replenishment cycle. Higher the percentage out of total SKUs means your inventory planning process is sound and chances of costly stock outs are less. This KPI is useful for continuous process industries where the demand for stock items is very erratic.
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Inventory
Percentage of duplicate stock numbers
This KPI helps to control multiple stock numbers for identical inventory. This can be found only when you have identified the total duplicates among your SKUs but you have not actioned. Once, you have identifed a multiple stock number, you have to merge the stocks to one stock number and make other stock numbers inactive for any procurement.
You can also monitor the KPI in terms of dollar value. Once you have eliminated the duplicate stock number by merging the stock and making other all but one multiple code inactive, you can exclude from the numerator. This KPI helps to monitor the progress made in eliminating the multiple stock numbers from your inventory.
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Inventory
Size of safety stock
Size of safety stock. Safety stock is a term used to describe a level of stock that is maintained below the cycle stock to buffer against stock-outs. Safety Stock or Buffer Stock exists to counter uncertainties in supply and demand.
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Supply chain, Inventory
% of safety stock used
Percentage of safety stock used in measurement period. Safety stock is a term used to describe a level of stock that is maintained below the cycle stock to buffer against stock-outs. Safety Stock or Buffer Stock exists to counter uncertainties in supply and demand.
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Supply chain, Inventory
Inventory Turns
This KPI tells us how often the average inventory over a given period of time (usally a year) is sold in that same period of time

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Inventory
% of stock available at customers first request
Percentage of stock available at customers first request.
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Inventory
Inventory management cost as % of gross sales
Inventory management cost as a percentage of gross sales.
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Inventory
Inventory holding costs (IHC) as % of gross sales
Inventory holding costs (IHC) as a percentage of gross sales.
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Inventory
Inventory holding costs (IHC) as % of inventory value
Inventory holding costs (IHC) as a percentage of inventory value.
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Inventory
% of goods received from 1 batch
It is a purchasing KPI that helps to reduce the number of batchs in a delivery from the supplier and that helps to release goods in less time by quality department
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Inventory to obsolete goods ratio
Inventory to obsolete goods ratio.
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Inventory
% of items tracked with Radio frequency identification (RFID)
Percentage of items tracked with Radio frequency identification (RFID
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Supply chain, Inventory, Logistics
Inventory turnover
The number of times that a companies inventory cycles or turns over per measurement period (month, quarter, year).
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Inventory
Inventory lead time
Lead time is the length of time it takes to obtain inventory from suppliers.
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Inventory
Inventory months of supply
Inventory on-hand divided by average monthly usage.
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Inventory
Stockouts in period
Stockouts indicate where a demand cannot be met due to the absence of the required inventory.
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Inventory
Stock cover
Stock cover is the length of time that inventory will last if current usage continues.
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Inventory
Inventory Value
Inventory Value = (Average Unit Cost) x (Units of Current Inventory)
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Inventory
Unit Cost per batch
Unit Cost per batch = (Cost/Quantity) for each batch
Primarily used in FIFO (First In First Out) Method
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Inventory
Inactive Stock
Products with Stock (in units or $), and without movement-sales in a given period of time (depending on movement of the market). Useful to define continuity of a specific product-size (SKU), or promotion campaigns. Most useful in companies with a big number of SKUs.
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Inventory
Early PO Receipts to PO due date
Early receipts to PO date – This is a measure on your suppliers and their diligence to supply per the contract date. Early receipts to PO produce unexpected deliveries turning up, congested goods inwards and of course higher that projected inventory levels.
Measure: PO due date vs Receive to Dock (stores) date.
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Inventory
Early receipts to MRP date (required date)
Early receipts to MRP date – MRP due date vs Receive to Dock (stores) date.
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Inventory
Inventory service level
Service Level KPI is to measure the level of service performed by Inventory or Stock Control in fulfilling their customer (user) requirement. It is reflected by the percentage of quantity or value fulfilled toward total quantity or value requested (demand) during the period of reporting.
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Inventory
Value of obsolete stock
Value of obsolete stock — inventory items replaced by an alternative but which may still be usable (or saleable) until exhausted.
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Inventory
Gross Margin Return on Inventory Investment
The GM ROII multiplies Inventory Turns (which tells us how healthy our stock is) by Gross margin (which tells us the percentage of profit we make on each sale).
Formula:
GM ROII = Gross Margin % * Inventory Turns
Inventory Turns = Sales / Average Inventory
A typical value in DIY is at least 100.
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ORDER  SERVICE
-short--response  time  to  query
-shortening  order  cycle  time
etc

BENEFITS  FOR  THE  BUSINESS
-making targeted  delivery date
-providing  order status
etc
DISTRIBUTION/WAREHOUSING/LOGISTICS
-order  fill  rate
-ontime delivery
-backorder  by  age
-service/ parts  availability
-targeted  delivery  date
-order  completeness
-delivery  reliability
etc

BENEFITS  FOR  THE  BUSINESS
-improve  order fill  rate
-improve on-time delivery
-reduce  shipment delays
etc


WAREHOUSE  KPI


Key Performance Indicators
Number of line items picked
Number of line items picked per day.
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Warehouse
% of correctly picked line items
Percentage of correctly picked line items.
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Warehouse
% of inventory items with incorrect stock balances
Percentage of inventory items with incorrect stock balances.
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Warehouse
% of Inventory items incorrectly located
Percentage of Inventory items incorrectly located.
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Key Performance Indicators
Number of line items picked
Number of line items picked per day.
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Warehouse
% of correctly picked line items
Percentage of correctly picked line items.
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Warehouse
% of inventory items with incorrect stock balances
Percentage of inventory items with incorrect stock balances.
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Warehouse
% of Inventory items incorrectly located
Percentage of Inventory items incorrectly located.

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Warehouse
Cubic meters per 1,000 packages
Cubic meters per 1,000 packages.
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Warehouse
Internal cycle time Receipt of material to GRN/MRR
Efficiency in warehouse operations hinge on quick turn around of activities and ensuring visibility of material tracking by creating Goods receipt note or material receipt report timely in system
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Warehouse
% of unfinished received items
% of items either not received or items received but pending put away
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Warehouse
% of filled warehouse locations
% of filled locations or % of Free space available in the warehouse
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Human Resources

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human resource management, human resource planning, strategic planning in resource, management development, training, business coaching, management training, coaching, counseling, recruitment, selection, performance management.

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