Key Performance Indicators and To-Do Lists provide the opportunity for a company to more fully utilize information already available within the organization to promote greater efficiency, stronger performance, and continuous improvement – all directed toward accomplishing company-wide business objectives for greater stronger asset performance.
The Keys to Performance > Whitepaper Infor EAM
The Keys to Performance
Using Key Performance Indicators and To-Do Lists
for Continuous ImprovementTable of Contents
Introduction ...................................................................................................................................................................3Key Performance Indicators......................................................................................................................................3To-Do Lists......................................................................................................................................................................5Software as a Tool to Success...................................................................................................................................6Conclusion....................................................................................................................................................................7About Infor.......................................................................................................................................................................7
2 The Keys to Performance > WhitepaperIntroduction
Regardless of the operating environment - manufacturing, transportation, government or municipality, regulated industry - every business is greatly concerned with performance. Too often this concern is demonstrated by periodic attempts to gauge business success through one-time audits and sporadic surveys of selected business practices and characteristics. The result of such e?ort is a set of ?gures which may or may not have anything to do with actual company performance. In fact, companies often establish goals and measurements within their organizations that actually work against each other.
Enterprises that employ recognized best practices determine their business strength, progress, and success in a much more organized manner: by establishing a concrete set of key performance indicators for their enterprise and by using critical to-do lists to help streamline business processes.
Key Performance Indicators
According to Wikipedia, Key Performance Indicators (KPI) are ?nancial and non-?nancial metrics used to quantify objectives to re?ect strategic performance of an organization. These indicators are used to show the current state of a company with respect to its core business goals - and to reveal areas where improvement, change, and/or enhancement is needed to promote further progress toward those goals.
At a more detailed level, KPIs represent a way to measure the value of activities and processes that are often di?cult to measure. Examples of such factors include customer satisfaction, service e?ciency, e?ects of internal leadership, and value of contact interaction.
A large municipal transportation ?rm has set up a KPI that determines what equipment warranties will expire within a certain period of time. Speci?c equipment are listed on the KPI results each week, allowing the company to conduct inspections on the buses, rail cars, and support ?xtures while they are still under warranty. Any required repairs for such equipment can then be performed prior to warranty expiration, thus providing for substantial repair savings and increased equipment reliability.
Clearly a KPI can be practically any measurable business driver. That is both the strength and weakness of KPI construction and usage. Strength and weakness? Yes! Because there is no ?nite, standard list of KPIs, the assembly of a business' KPI library is highly individual. Each business enterprise has di?erent goals, di?erent priorities, di?erent methods of operation. Therefore, establishing and implementing a KPI library is much more than a chairman, president, or manager writing a list of measurable goals. E?ective KPIs are never written in a vacuum. They always require consensus and buy-in from all the relevant players. This interaction helps to prevent the establishment of KPIs that work against one another - because stakeholders can communicate their priorities and hash out potentially harmful con?icts before the KPI items are set in stone.
3The Keys to Performance > Whitepaper A well-known electric motor manufacturer tasked its departments with establishing KPIs for their operations. No interac... [download for more]
