Category Archives: Production

Service expenses

Definition:
Costs of services that has been given to a certain customer or a section of customers.

Calculation:
Sum of specified costs

This KPI is measured as: Financial Value (e.g. €, $)

Interpretation of results: Lower Is Better

Strategic objective:
Efficient operations

Quality problems

Definition:
Quality problems detected during product audits in the field

Calculation:
sum of quality problems

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Long-term relationship with profitable customers

Quality Service Guarantees issued (refund for poor service)

Definition:
Number of guarantee issues resulting in refund for poor service

Calculation:
Sum of issues

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability

Cost of quality correction

Definition:
Cost of quality correction—rework, rejects, warrantees, returns and allowances, inspection labor, and equipment, complaint processing costs

Calculation:
Sum of costs of quality correction

This KPI is measured as: Financial Value (e.g. €, $)

Interpretation of results: Lower Is Better

Strategic objective:
Efficient operations

KPIs by Business Process

All KPIs at KPI-Start.com are categorized to business processes. The model below is based on the value chain of Porter (1985). The primary processes are shown vertically, the secondary processes horizontally. Click at a process to take a look at the KPIs that measure that specific business process.

Business ProcessesFinance & ControlHuman Resource ManagementResearch & DevelopmentTransportProcurementInventoryProductionSalesMarketing