Skip to main content

What are KPIs?

A key performance indicator (KPI) is a specific measure of an organization's performance in some area of its business. It is a very general concept, with different implementations depending on the type of business and goals of the organization.

Examples of KPIs may include such things as the percentage of deliveries made on time, total inventory at any given time, distribution costs as a percentage of total sales, accuracy of invoices sent to clients, or lead time for a product.
The purpose of KPIs is to give a business quantifiable measurements of things it has determined are important to its long-term success. Identifying the most important KPIs is the first step towards realizing increased profitability and efficiency for most businesses. For KPIs to be useful, they must be consistently quantifiable, have an established correlation to the area of the business in need of improvement, and not give false readings.

- KPIs are utilised to track or measure actual performance against key success factors.
  • Key Success Factors (KSFs) only change if there is a fundamental shift in business objectives.
  • Key Performance Indicators (KPIs) change as objectives are met, or management focus shifts.
Labels:

Comments

Post a Comment

Popular posts from this blog

Mastering the Monitoring of Low-Speed Bearings

Machinery that operates at speeds below 600 rpm falls under the category of low-speed machines. These machines are typically large and possess high rotating inertias, making them crucial components of the production line. Although these machines are less prone to breakdowns, they are considered critical, and their failure can result in enormous production losses, significant downtime, and substantial replacement costs. Historically, there has been limited interest in the condition monitoring of these machines due to their infrequent failures. The parts of these machines that necessitate condition monitoring are primarily the bearings and gears in motion. This article will cover modern and innovative techniques for monitoring the condition of low-speed machinery, with a particular emphasis on monitoring the condition of rolling element bearings. Monitoring low-speed bearings present unique challenges. In the case of high-speed bearings, vibration analysis, thermography, and wear deb...
Post a Comment
[Read more...]

Three Generations of World Maintenance

Since the 1930's, the evolution of maintenance can be traced through three generations. RCM is rapidly becoming a cornerstone of the Third Generation, but this generation can only be viewed in perspective in the light of the First and Second Generations. The First Generation The First Generation covers the period up to World War II. In those days industry was not very highly mechanized, so downtime did not matter much. This meant that the prevention of equipment failure was not a very high priority in the minds of most managers. At the same time, most equipment was simple and much of it was over-designed. This made it reliable and easy to repair. As a result, there was no need for systematic maintenance of any sort beyond simple cleaning, servicing and lubrication routines. The need for skills was also lower than it is today.
Post a Comment
[Read more...]

How To Troubleshoot the Effective Maintenance

Knowledge of effective troubleshooting practices can go a long way toward getting equipment back on line quickly. Unfortunately, due to many reasons troubleshooting occupies too much of a technician's time. You might consider these six key elements to improve your troubleshooting skills: Understand the system Understand the problem and history Eliminate the obvious Develop possible causes and theories Eliminate causes, start with what is easy, or likely Validate and document the solution Firstly, if you do not understand the system and how it functions, you will be thrashing around in the dark. I found the best time to understand was while the equipment was running and producing product. Time spent studying the process while the equipment was running paid huge benefits when issues arose. It was always beneficial to listen closely to what the operator saw, heard, noticed, and did, just before the problem occurred. I learned quickly that a good operator was a great asset. ...
Post a Comment
[Read more...]

Introduction To World of Maintenance

Maintenance has changed Over the last twenty years, maintenance has changed, perhaps more so than any other management discipline. The changes are due to a huge increase in the number and variety of physical assets (plant, equipment and buildings) that must be maintained throughout the world, more complex designs, new maintenance techniques and changing views on maintenance organization and responsibilities.
Post a Comment
[Read more...]

5 Important Maintenance Metrics and How To Use Them

By  Bryan Christiansen,  Limble CMMS. Source : maintworld.com Effective maintenance of equipment is a critical factor in delivering quality operations that provide timely resources at a minimal cost. However, those in the maintenance field understand that equipment reliability does not come easy.  Organizations need to set quality benchmarks to measure the current effectiveness and predict future performance and use the data obtained to understand where to make improvements.   One way to do this is by using different maintenance metrics to understand the equipment performance. These metrics are very important as they can mean the difference between achieving the overall business goals and explaining how unexpected breakdowns caused yet another production delay.   Maintenance Metrics You Should Be Measuring What are the maintenance metrics? There are two categories of maintenance key performance indicators which include the leading and lagging indicators....
Post a Comment
[Read more...]