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)
8. Economic Value Added (EVA)
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)
To understand your customers:
19. Net Promoter Score (NPS)
20. Customer Retention Rate
21. Customer Satisfaction Index
22. Customer Profitability Score
23. Customer Lifetime Value
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
30. Cost per Lead
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
60. Staff Advocacy Score
61. Employee Churn Rate
62. Average Employee Tenure
63. Absenteeism Bradford Factor
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
Scrap value %
Maintenance costs as % of
manufacturing costs
Raw material turns (
First Run Quality Pass %
Overall Equipment Effectiveness (OEE)
Available capacity for ramping new or existing products
Production leadtime
TAKT Time
Scrap value as a percentage of production value.
Maintenance costs as a percentage of manufacturing costs.
COGS/Average raw material)
Percentage of produced units which pass without rework in first pass
Availability = Operating Time / Planned Production Time
Performance = Ideal Cycle Time / (Operating Time / Total Pieces)
or
Performance = (Total Pieces / Operating Time) / Ideal Run Rate
Quality = Good Pieces / Total Pieces
Indicator of capacity available for ramping new or existing products
Production time for handling orders from first to last process.
Takt Time:the time between units of production output,
synchronized to customer demand.
The concept carries backward through a process stream. Ideally,
every step synchronizes with the final output. Takt Time is
fundamental to Lean Manufacturing
Inventory Turns
Inventory holding costs (IHC) as % of inventory value
Inventory Value
Stockouts in period
Inventory lead time
Early PO Receipts to PO due date
On-Time Delivery, Commit Date, Supplier
Spend per Supplier
Average number of days open of purchase order requests
% of re-opened purchase order requests
Purchasing KRA include KRAs (can apply for KPIs management)
1. Outsourcing strategy / development / management
2. Zero production losses due to material shortages.
3. Timely delivery of goods at the respective sites.
4. Stock audit to ensure reconciliation of physical stocks.
5. Developing & negotiating with suppliers for obtaining timely procurement of materials at favourable commercial items.
6. Assessment of performance of the vendors.
7. Logistics operations.
8. Introducing innovative initiatives in operations.
9. Reduce on-hand inventory to the lowest feasible levels consistent with customer service objectives.
10. Reduce materials costs to the lowest levels consistent with quality objectives. Cost saving budgeting and targeting.
11. Purchasing policy and planning.
12. Development & implementation of key procurement strategies.
13. Formulating budget for timely procurement of spares & materials.
14. Develop statistical methods to estimate future materials requirements.
15. Assessing project material requirements and designing purchase schedule.
Click Here To Download Purchasing KRA
Inventory Turns
Inventory holding costs (IHC) as % of inventory value
Inventory Value
Stockouts in period
Inventory lead time
Early PO Receipts to PO due date
On-Time Delivery, Commit Date, Supplier
Spend per Supplier
Average number of days open of purchase order requests
% of re-opened purchase order requests
Purchasing KRA include KRAs (can apply for KPIs management)
1. Outsourcing strategy / development / management
2. Zero production losses due to material shortages.
3. Timely delivery of goods at the respective sites.
4. Stock audit to ensure reconciliation of physical stocks.
5. Developing & negotiating with suppliers for obtaining timely procurement of materials at favourable commercial items.
6. Assessment of performance of the vendors.
7. Logistics operations.
8. Introducing innovative initiatives in operations.
9. Reduce on-hand inventory to the lowest feasible levels consistent with customer service objectives.
10. Reduce materials costs to the lowest levels consistent with quality objectives. Cost saving budgeting and targeting.
11. Purchasing policy and planning.
12. Development & implementation of key procurement strategies.
13. Formulating budget for timely procurement of spares & materials.
14. Develop statistical methods to estimate future materials requirements.
15. Assessing project material requirements and designing purchase schedule.
Click Here To Download Purchasing KRA
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.
Inventory Turns = Sales / Average Inventory
Stockouts indicate where a demand cannot be met due to the absence of the required inventory.
Lead time is the length of time it takes to obtain inventory from suppliers.
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.
On-time delivery % of deliveries that are on time
Average spend per supplier. Targets may be different for different categories and buying channels.
5. Developing & negotiating with suppliers for obtaining timely procurement of materials at favourable commercial items.
10. Reduce materials costs to the lowest levels consistent with quality objectives. Cost saving budgeting and targeting.
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.
Stockouts indicate where a demand cannot be met due to the absence of the required inventory.
Lead time is the length of time it takes to obtain inventory from suppliers.
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.
Average spend per supplier. Targets may be different for different categories and buying channels.
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.
http://kpilibrary.com/kpis/time-to-market-of-new-products
Time-to-market of new products Time-to-market of new products/services. The time it takes from the time a product is envisioned or defined until it is on store shelves.
Percent R&D cost for new products
Number of Change Request per Product Development ProjectThe number of Change Requests is a metric that allows an Engineering Manager to assess how well requirements are defined as opposed to the product conforming to it.
Design to Cost accuracy
Average number of prototypes per new product Average number of prototypes per new product.
Design to Cost accuracy Actual product cost / Estimated cost of product at the beginning of the product design
Time-to-market of new products/services. The time it takes from the time a product is envisioned or defined until it is on store shelves.
The number of Change Requests is a metric that allows an Engineering Manager to assess how well requirements are defined as opposed to the product conforming to it.
Average number of prototypes per new product.
Actual product cost / Estimated cost of product at the beginning of the product design
The number of Change Requests is a metric that allows an Engineering Manager to assess how well requirements are defined as opposed to the product conforming to it.
% of maintenance hours of operating time (maintenance efficiency)
% of preventative maintenance tasks completed by due date
Maintenance cost per unit
Maintenance costs as % of manufacturing costs
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.
[Maintenance man hours] / [Operating time] x 100%
his KPI measures the efficiency of the planning department in implementing and completing P.M tasks by their due date.
Maintenance cost per unit is total maintanance cost divided by number of
produced units in measurement period. Total maintenance cost includes
total costed maintenance man hours, parts and any other costs associated
with the maintenance effort (preventive and corrective).
[total maintanance cost] / [number of produced units]
Cost of Maintenance in % of Total manufacturing cost
his KPI measures the efficiency of the planning department in implementing and completing P.M tasks by their due date.