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Category Archives: KPI

Purchase KRA


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.

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Posted by on December 25, 2012 in KPI, KRA's

 

Finance KRA


Finance and Accounting KRAs include KRAs (can apply for KPIs management)

1. Cost control

2. Internal audit

3. Regulatory reporting

4. Credit control

5. Financial records

6. Payroll

7. Cash flow forecasting

8. Budgeting

9. Costing

10. Capital expenditure

11. Financial analysis

12. Credit referencing

13. Management information

 
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Posted by on December 25, 2012 in KPI, KRA's

 

Manufacturing KRA


Manufacturing KRAs include KRAs (can apply for KPIs management):

1. Customer Satisfaction

2. Good working conditions

3. Product development.

4. Preventive maintenance

5. Delivery management:

• Minimize downtime and
• Meet annual production target as per expected cycle time.

6. Resource Utilization

• Maximizing quality of product, efficiency of production and maximize production rates.
• Compliance of corporate policy norms.
• Maximize plant efficiency through teamwork and innovation

7. Operational costs.

• Minimize the scarp level/wastage reduction.
• Control overhead expenditure.
• Stock Control.
• Reduction in operating costs.
• Minimize the inventory levels.

8. Implementation of quality control programs

• Apply newer management techniques such as ISO, TQM, Six Sigma, etc.
• Application and acceptance of new technology.
• Shop floor improvements.

9. Productivity: Improvement of process.

10. Record Keeping.

 
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Posted by on December 25, 2012 in KPI, KRA's

 

Quality KRAs


Quality KRAs include KRAs (can apply for KPIs management)

1. Develop and implement quality management strategy and plans.

2. Validation of process, instruments, methods, etc.

3. Quality assurance for the projects and the manufacturing set up.

4. Evaluation of new suppliers and vendors.

5. Minimization of rejection & rework.

6. Customer’s acceptance include: establish quality standards & implementing quality control requirements of the customers and handle complaint.

7. Standardization for goods and work inspection.

 
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Posted by on December 25, 2012 in KPI, KRA's

 

Marketing KRA


Marketing KRAs include KRAs (can apply for KPIs management):

1. Market research

2. Marketing materials

3. Media relations

4. Sales support

5. Agency relations

6. Advertising

7. Pricing

8. Field support

8. Promotional strategy.

 
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Posted by on December 25, 2012 in KPI, KRA's

 

Sales KRA


Sales KRA include components as follows (can apply for KPIs management):

1. Budget preparation / sales expenditure.

2. New Business Acquisition

3. Net sales

4. Gross Contribution

5. Key Account Management

6. Territory Management

7. Customer Relationship Management

8. Sales forecasting. Market research.

9. Building client relationship

10. Consultative Selling

11. Agency Relations.

12. Product Management

13. Sales Planning

 
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Posted by on December 25, 2012 in KPI, KRA's

 

KPI


Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization.

A employees’ success depends on how well they understand their job responsibilities and the specific tasks their jobs entail. A job description provides this information. A well-crafted job description communicates your expectations to job candidates and serves as a manual for hiring the best person for the job. After the candidate has been hired, the description becomes an assessment tool that helps you measure the employee’s performance against the stated job requirements. Key performance indicators, or KPIs, are measurable outcomes tied to specific tasks the job description lists.

Two main components in job descriptions: The job and the competencies required to do the job. Within the job section are key result areas, or KRAs, comprising groups of related tasks that explain the purpose of the job. A key result area for a retail clerk might be upselling to customers as they approach the cash register. Tasks associated with upselling might include promoting opt-ins to a loyalty program. The key performance indicator for that task might specify that the employee is responsible for increasing loyalty program membership. This key performance indicator would, in turn, support an overall objective to increase sales.

Key Performance Indicators Reflect The Organizational Goals

Whatever Key Performance Indicators are selected, they must reflect the organization’s goals, they must be key to its success,and they must be quantifiable (measurable). Key Performance Indicators usually are long-term considerations. The definition of what they are and how they are measured do not change often. The goals for a particular Key Performance Indicator may change as the organization’s goals change, or as it gets closer to achieving a goal.

It is also important to define the Key Performance Indicators and stay with the same definition from year to year. For a KPI of “Increase Sales”, you need to address considerations like whether to measure by units sold or by dollar value of sales. Will returns be deducted from sales in the month of the sale or the month of the return? Will sales be recorded for the KPI at list price or at the actual sales price?

Key Performance Indicators Must Be Quantifiable

For a KPI of “Increase Sales”, you need to address considerations like whether to measure by units sold or by dollar value of sales. Will returns be deducted from sales in the month of the sale or the month of the return? Will sales be recorded for the KPI at list price or at the actual sales price?

You also need to set targets for each Key Performance Indicator. A company goal to be the employer of choice might include a KPI of “Turnover Rate”. After the Key Performance Indicator has been defined as “the number of voluntary resignations and terminations for performance, divided by the total number of employees at the beginning of the period” and a way to measure it has been set up by collecting the information in an HRIS, the target has to be established. “Reduce turnover by five percent per year” is a clear target that everyone will understand and be able to take specific action to accomplish.

 
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Posted by on December 13, 2012 in KPI