Category Archives: All Private Industries

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

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

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

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

Service requests outstanding

Definition:
Service requests (faults, works requests) outstanding. This can be used as an indicator for the workload for the after sales department , or to measure the trend line of numer of outstanding requests. A rise in request may point to low production or service quality.

Calculation:
Sum of service requests with status outstanding

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

Interpretation of results: Lower Is Better

Strategic objective:
Retention of customers/minimize negative comment in the marketplace

Order entry error rate

Definition:
Rate of orders that has been entered incorrect into the system. The higher the number of incorrect entries, the less streamlined the further process of delivery will pass off. Mind that higher number of errors can be an indicator of a higher pressure of work.

Calculation:
(Number of incorrect entered orders / total entered orders) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Efficient operations