Professional Documents
Culture Documents
KPI - Content
What is it for?
At the local level to monitor process outputs and performance against scorecard
As part of listening to the Voice of the Customer
To monitor shared goals and objectives
Alignment to the business objectives links to the Voice of the Business
Examples
ABB Group July 27, 2010 | Slide #
15 July 2010, Slide 2
KPIs are used to measure and monitor our performance against the characteristics which we
determine are critical for us to deliver our business plan
Used at different levels from long term objectives, through shared goals and down to local level
At local level we will often use the Voice of the Customer (VOC) to help identify our process metrics
Expected Benefits:
Clear and well defined KPIs will give us sound baselines from
which to continue to improve our performance
Uses:
Do we have existing measures in use within our business or process that can be
used?
Does the measure match how the customer defines the process quality?
Effectiveness
Effectiveness
A measure of how well the
process step meets or exceeds
customer requirements
Defects
Complaints
Billing accuracy
One touch transactions
ABB Group July 27, 2010 | Slide #
15 July 2010, Slide 6
Efficiency
Efficiency
A measure of resource
utilisation in the process step
Cost per transaction
Time per process step
No. of staff per process step
Bill of materials per process step
ACCURACY
Correctness and clarity
Completeness and closure
Fairness and consistency
Knowledge of the service agent
Empathy of the service agent
Sustaining a balance of
thoroughness, efficiency and
positive experience across all
encounters with the customer
On Time
On Quality
Perceived
Customer
Value
Customer
Requirement
Lower
USL
LSL
Upper
-4
+1
Requirement
Delivery to Schedule (days)
Delivery from 4
days early to 1 day
late is OK for me.
Description
How Measured
KPIs
Global
Objectives
(Board of Directors
EC - Division)
Safety
Quality
Warranty
RM Inventory
FG Inventory
Efficiency
OTD
Growth
People
Safety
Quality
Efficiency
OTD
LV Drive
Objectives
(BU)
Shared
Goals & Measures
(LBU Operations)
Focused Factory
Goals & Measures
(Workstation Team)