4 Replies Latest reply: Nov 18, 2013 7:55 AM by saeed saberi

# Collect KPIs

Dear Friends ,

My suggest is to start to collect Key Performance Indicators based on each industry.

Regards,

• ###### Re: Collect KPIs

Good idea, we could do this together and put KPI's as QDF Variable templates.

Support for this is already in the design

Cheers

# KPIs in ‘Supply Chain, Inventory & Logistics’ industry :

For example :

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.

Is a percentage of units sold during a period and it is calculated by dividing the number of units sold by the beginning on-hand inventory (for that same time period).

Inventory Days of Supply = Average Inventory / Cost of a Day’s Sales

Example: \$20/ \$0.5 = 40 days supply

The (average) age of each product in stock. For example, product received in Jan, but remains until Aug.

The dollar value weighted average time in days that goods are held in stock.

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.

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.

Inventory Value = (Average Unit Cost) x (Units of Current Inventory)

and ................................

Regards

#### To measure financial performance:

1. Net Profit

2. Net Profit Margin

3. Gross Profit Margin

4. Operating Profit Margin

5. EBITDA

6. Revenue Growth Rate

7. Total Shareholder Return (TSR)

9. Return on Investment (ROI)

10. Return on Capital Employed (ROCE)

11. Return on Assets (ROA)

12. Return on Equity (ROE)

13. Debt-to-Equity (D/E) Ratio

14. Cash Conversion Cycle (CCC)

15. Working Capital Ratio

16. Operating Expense Ratio (OER)

17. CAPEX to Sales Ratio

18. Price Earnings Ratio (P/E Ratio)

19. Net Promoter Score (NPS)

20. Customer Retention Rate

21. Customer Satisfaction Index

22. Customer Profitability Score

24. Customer Turnover Rate

25. Customer Engagement

26. Customer Complaints

#### To gauge your market and marketing efforts:

27. Market Growth Rate

28. Market Share

29. Brand Equity

31. Conversion Rate

32. Search Engine Rankings (by keyword) and click-through rate

33. Page Views and Bounce Rate

34. Customer Online Engagement Level

35. Online Share of Voice (OSOV)

36. Social Networking Footprint

37. Klout Score

#### To measure your operational performance:

38. Six Sigma Level

39. Capacity Utilisation Rate (CUR)

40. Process Waste Level

41. Order Fulfilment Cycle Time

42. Delivery In Full, On Time (DIFOT) Rate

43. Inventory Shrinkage Rate (ISR)

44. Project Schedule Variance (PSV)

45. Project Cost Variance (PCV)

46. Earned Value (EV) Metric

47. Innovation Pipeline Strength (IPS)

48. Return on Innovation Investment (ROI2)

49. Time to Market

50. First Pass Yield (FPY)

51. Rework Level

52. Quality Index

53. Overall Equipment Effectiveness (OEE)

54. Process or Machine Downtime Level

55. First Contact Resolution (FCR)

#### To understand your employees and their performance:

56. Human Capital Value Added (HCVA)

57. Revenue Per Employee

58. Employee Satisfaction Index

59. Employee Engagement Level

61. Employee Churn Rate

62. Average Employee Tenure

64. 360-Degree Feedback Score

65. Salary Competitiveness Ratio (SCR)

66. Time to Hire

67. Training Return on Investment

#### To measure your environmental and social sustainability performance:

68. Carbon Footprint

69. Water Footprint

70. Energy Consumption

71. Saving Levels Due to Conservation and Improvement Efforts

72. Supply Chain Miles

73. Waste Reduction Rate

74. Waste Recycling Rate

75. Product Recycling Rate

The 75 KPIs Every Manager Needs To Know | LinkedIn

BSC

## Financial perspective

• Total assets holdings
• Asset value per one employee
• Capital productivity ratio
• Sales volumes for new products/services
• Working efficiency of personnel
• Profitability of assets
• Revenue from new products/services
• Revenue per employee
• Market price per share
• Profitability of net assets
• Added value per one employee
• Efficiency of assets
• Profitability of investment
• Efficiency of sales volumes
• Ratio of marginal revenue
• Marginal revenue per employee
• Cash flow
• Ratio of equity capital to total assess holdings
• Profitability of investment
• Total expenses

## Customer perspective

• Number of customers
• Market share (%)
• Average annual sales volume per customer
• Number of lost customers
• Average time of taking an order
• Number of customers per employee
• Specific weight of concluded agreements in the total number of contacts with customers
• Customer satisfaction
• Customer loyalty
• Expenses per customer
• Number of visits/contacts with customers
• Marketing expenses
• Average contact duration with a customer
• Average amount of products shipped to one customer
• Number of customer visits to the company
• Average time between first contact with the customer and signing of agreement
• Average annual expenses to serve one customer

• Specific weight of administered if expenses in total revenue
• Ratio of timely completed orders
• Average product labor-output ratio
• Average development time of a new product
• Average time from placing the order to its completion
• Supplier frequency
• Average decision-making time
• Turnover of material assets
• Labor productivity growth
• Efficiency of information systems
• Increasing number of IT Systems &amp;Computer Equipment
• Specific weight of expenses on IT Systems in the total amount of administrative expenses
• Emission of hazardous substances to the environment
• Influence of company products to the external environment
• Expenses related to correction of mistakes in managerial decisions
• Number of properly executive orders

## Learning and growth perspective

• Expenses for research and innovation
• Specific weight of expenses on research and innovation in the total amount of expenses
• Specific weight of expenses on improvements in total amount of expenses related to IT technologies
• Length of research and innovation projects
• Resources allocated on research and innovation
• Investment in training of personnel dedicated to customer relations
• Investments in innovation and research
• Expenses related to preparations and study of new products
• Investments in exploration of new markets
• Frequency of direct contacts with customers
• Number of registered patents
• Average time company patents are in force
• Number of rational and creative ideas per employee
• Average training cost per employee
• Employee satisfaction index
• Marketing expenses per customer
• Employee trust rate to the company
• Specific weight of employees who have not reached a certain age in the total number of employees
• Non production expenses per customer
• Specific weight of new products in the total amount of products

## Human resources perspective

• Personnel motivation index
• Number of employees
• Personnel turnover rate
• Average employment time in the company
• Average employee age
• Time spent for education and training of personnel
• Ratio between temporary and permanent employees
• Percentage of employees with college degree
• Average employee absence time
• Number of female managers
• Number of job applications to the company
• Personnel trust rate to the company
• Ratio of employees under 40 y.o.
• Annual expense for re-education of personnel
• Number of fulltime employees who spend less than half of working time in office
• Ratio of fulltime employees
• Number of temporary fulltime employees
• Number of part time employees
• Number of employees with a per hour compensation system

List of sample KPIs in 5 perspectives of BSC

AMF

• ###### Re: Collect KPIs

Thanks Alessandro.