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Operations Key Performance Indicators (KPIs)

Operations Key Performance Indicators (KPIs)

Click on any group within the Operations department to view its KPIs:

Business Process Management

Process automation

The percentage of processes that are automated, reducing manual labor and increasing productivity.

Process compliance

The extent to which a process adheres to established policies, regulations, and industry standards.

Process cost

The cost of executing a process, including labor, materials, and overhead expenses.

Process cycle time

The average time it takes to complete a process, from start to finish.

Process effectiveness

The ability of a process to achieve its intended outcome, such as revenue growth or cost reduction.

Process efficiency

The ability of processes to produce output with minimum wasted effort, time and cost.

Process innovation

The number of new process improvements implemented within a given period of time.

Process quality

The number of defects or errors in a process output, as well as the level of customer satisfaction.

Process scalability

The ability of a process to handle increased volumes of work or customers without losing quality or efficiency.

Process visibility

The extent to which a process can be monitored and tracked in real-time, allowing for timely intervention when issues arise.

Continuous Improvement/Lean Six Sigma

Cost of Quality (CoQ)

The cost of preventing defects and maintaining quality, including the cost of inspections, rework, scrap, and warranty claims.

Cycle time

The time it takes to complete a process, including waiting time and work time, and helps identify bottlenecks and opportunities to reduce lead times.

Defects per million opportunities (DPMO)

The number of defects in a process relative to the total number of opportunities for defects to occur.

First Pass Yield (FPY)

The percentage of products or services that pass through a process without needing rework or correction.

Kaizen events completed

The number of rapid improvement events completed in a specific period, indicating the frequency and success of continuous improvement efforts.

Lean Six Sigma certification rate

The percentage of employees who have completed Lean Six Sigma training and received certification.

Net Promoter Score (NPS)

Customer satisfaction and loyalty by asking customers to rate their likelihood of recommending the company’s products or services to others.

Overall Equipment Effectiveness (OEE)

The availability, performance, and quality of manufacturing equipment to identify opportunities for improvement.

Process Cycle Efficiency (PCE)

The percentage of time spent on value-added activities versus non-value-added activities in a process.

Reduction in waste

The amount of waste generated by a process, such as excess inventory or scrap, and tracks progress in reducing waste over time.

Customer service

Average Handle Time (AHT)

The average time taken by the customer service representative to handle a customer inquiry.

Average Speed of Answer (ASA)

The average time taken by the customer service representative to answer the customer’s call.

Average Wait Time (AWT)

The average time that customers wait on hold before reaching a customer service representative.

Call Abandonment Rate

The percentage of customers who hang up before reaching a customer service representative.

Call Center Occupancy Rate

The percentage of time that customer service representatives are engaged in customer interactions.

Customer Satisfaction Score (CSAT)

The level of satisfaction of the customer with the service provided by the customer service representative.

First Contact Resolution (FCR) rate

The percentage of customer inquiries that are resolved during the first contact with the customer service representative.

Net Promoter Score (NPS)

The willingness of customers to recommend the company to others.

Resolution Time

The time taken to resolve customer inquiries.

Service Level Agreement (SLA) compliance

The percentage of customer inquiries that are handled within the agreed-upon SLA timeframe.

Engineering

Employee Engagement

The level of employee engagement within the Engineering group. It is important to ensure that employees are motivated and committed to their work, as this can have a significant impact on productivity and the overall success of the group.

Productivity

The output produced by the Engineering group compared to the resources (such as labor, materials, and capital) used to produce it. It is important to ensure that the Engineering group is working efficiently and effectively.

Quality

The quality of the products or services produced by the Engineering group. It is important to ensure that the products or services meet or exceed customer expectations and industry standards.

R&D Spend

The amount of money invested in research and development (R&D) activities. It is important for the Engineering group to have a high R&D spend to ensure that they are constantly innovating and improving their products or processes.

Time-to-Market

The amount of time it takes to bring a product or service to market from the initial idea stage. A shorter time-to-market can give a company a competitive advantage, which is crucial in today’s fast-paced business environment.

 

Facilities Management

Emergency response time

The time it takes for Facilities Management to respond to an emergency. By tracking response times, Facilities Management can identify areas where they can improve their response times and ensure the safety and security of employees and visitors.

Employee satisfaction with facilities

Employee satisfaction with the facilities and amenities provided by the company. By tracking employee satisfaction, Facilities Management can identify areas where they can improve the workplace environment and create a more productive and engaging workplace.

Energy consumption per square foot

The efficiency of a company’s buildings and facilities. By tracking energy usage, Facilities Management can identify areas where they can improve energy efficiency, reduce costs, and reduce the company’s carbon footprint.

Occupancy cost per square foot

The cost of occupancy per square foot of space used by the company. By tracking this KPI, Facilities Management can identify areas where they can reduce costs and optimize the use of space.

Planned maintenance percentage

The percentage of planned maintenance work completed on schedule. By tracking planned maintenance completion rates, Facilities Management can ensure that equipment and facilities are maintained regularly and prevent unexpected downtime.

Health and Safety

Compliance with Safety Regulations

The percentage of compliance with safety regulations and standards set by relevant authorities.

Emergency Response Time

The average response time for emergency situations within the workplace.

Hazard Identification and Correction Rate

The percentage of identified hazards that have been corrected or mitigated.

Lost Time Incident Rate (LTIR)

The number of lost time incidents per 100 employees over a period of time.

Near Miss Reporting Rate

The number of reported near misses per month or quarter.

Recordable Incident Rate (RIR)

The number of recordable incidents per 100 employees over a period of time.

Safety Culture Survey Results

Employee perceptions of safety culture within the organization.

Safety Training Completion Rate

The percentage of employees who have completed safety training programs.

Safety Walkthrough Completion Rate

The percentage of safety walkthroughs completed by supervisors and management.

Worker’s Compensation Claims

The number of worker’s compensation claims over a period of time.

 

Manufacturing/Production

Cycle Time

The time it takes to produce a single unit of a product from start to finish, including the time it takes to set up the production line, manufacture the product, and perform quality control checks.

Downtime

The amount of time that production equipment is not operational due to maintenance, breakdowns, or other issues.

Overall Equipment Effectiveness (OEE)

The efficiency of the production process by evaluating the availability, performance, and quality of equipment.

Scrap and Rework

The amount of waste generated during the production process, as well as the cost and time associated with reworking defective products to bring them up to standard.

Yield

The percentage of products that pass quality control tests and are deemed usable and saleable.

Procurement

Contract Compliance

The level of compliance with contract terms and conditions, such as pricing, delivery timelines, and quality standards.

Cost Savings

The cost savings achieved through procurement activities, such as negotiating better prices with suppliers or identifying cost-efficient alternatives.

Inventory Turnover

The number of times inventory is sold and replaced over a period of time, which helps procurement teams to manage stock levels and cash flow.

Payment Cycle Time

The time taken to process payments to suppliers, including invoice processing, approval, and payment.

Purchase Order Accuracy

The accuracy of purchase orders, including the correct items, quantities, prices, and delivery details.

Purchase Order Cycle Time

The time taken to process purchase orders from creation to approval to receipt of goods or services.

Savings from Sustainability

The cost savings achieved through sustainable procurement practices, such as reducing waste, energy usage, or carbon footprint.

Spend Under Management

The percentage of total spend that is actively managed by procurement, including contracts, purchase orders, and supplier relationships.

Supplier Diversity

The percentage of spend that goes to suppliers from diverse backgrounds, such as minority-owned or women-owned businesses.

Supplier Performance

The performance of suppliers based on factors such as on-time delivery, quality of goods and services, and responsiveness to issues.

Project Management

Cost variance (CV)

The difference between the planned cost of work completed and the actual cost of work completed at a given point in time.

Customer satisfaction

The satisfaction of project stakeholders, including customers, team members, and management.

Earned value (EV)

The value of the work completed to date, based on the budgeted cost of the work.

Project budget utilization (PBU)

The percentage of the project budget that has been used at a given point in time.

Project team productivity

The amount of work completed by the project team in a given time period.

Project success rate

The percentage of projects that are completed on time and on budget.

Risk management effectiveness

The ability of the project team to identify, assess, and mitigate risks throughout the project lifecycle.

Scope creep

The amount of change in project scope from the original plan, indicating potential issues with project management and requirements gathering.

Schedule variance (SV)

The difference between planned project work and actual project work completed at a given point in time.

Time to market (TTM)

The time it takes from project initiation to final product delivery, indicating the speed of project completion.

Quality Assurance/Control

Cost of Quality

The total cost incurred to ensure that products or services meet the required quality standards. It includes the cost of prevention, appraisal, and failure. Reducing the cost of quality is an indication of effective quality control measures.

Customer Complaints

The number of complaints received from customers about the quality of products or services. It helps to identify areas that need improvement to increase customer satisfaction.

Defect Density

The number of defects identified in a product or process divided by the total number of units produced or processed. It helps to identify areas of the process that need improvement to reduce the number of defects.

First Pass Yield

The percentage of products or services that pass the quality inspection process on the first attempt. A high first pass yield is an indication of effective quality control measures.

Process Capability

The ability of a process to consistently produce products or services that meet the required quality standards. It helps to identify areas that need improvement to increase the consistency of the process.