Category Archives: All Private Industries

Percentage of invoices processed within a certain period

Definition:
Part of all the invoices that have been processed within a predefined period. This figure can be relevant for managing the creditors ledger.

Calculation:
(Invoices processed in the defined period / total number of invoices) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Efficient operations; good relationship with creditors

Average age of company patents

Definition:
The age of patents from the company. A higher average age means that the organization was less innovative in the recent history since there are more old than new patents.

Calculation:
Average of patent ages

This KPI is measured as: Time (e.g. Years, Minutes)

Interpretation of results: Lower Is Better

Strategic objective:
Innovation

Time elapsed since repeat business with category A customers (top 20% or top 10% customers)

Definition:
The time between two deals with Category A customers, which must be predefined. Normally this should be as low as possible, on the other hand: one large order can be more interesting than a lot of small orders…

Calculation:
Time of last order - time of the order before.

This KPI is measured as: Time (e.g. Years, Minutes)

Interpretation of results: Depends On The Goals

Strategic objective:
Increase profitability

Conversion rate of proposals

Definition:
Conversion rate of proposals: rate of the number of proposals that is really converted into sales.

Calculation:
Number of proposal, number of transactions

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

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

Orders canceled

Definition:
Number of orders that have been canceled. These cancellations can be categorized by predifined reasons

Calculation:
Sum of orders canceled

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

Interpretation of results: Lower Is Better

Strategic objective:
Long-term

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

Customer satisfaction of top 10% of customers

Definition:
Average customer satisfaction specific for the top 10% of customers. Top 10 needs to be defined (eg. sales, profit)

Calculation:
Average of scores

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

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Order shipment in full on time

Definition:
Percentage of orders shipped, which are complete and on time (delivery in full on time), compared tot total orders shipped.

Calculation:
(Orders shipped complete on time / total orders shipped) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Efficient operations

Order frequency

Definition:
Number of orders coming in per period (day/week/year).

Calculation:
Number of orders / period.

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

Interpretation of results: Higher Is Better

Strategic objective:
Efficient operations