How can you calculate the productivity in many kpi?

Answer 1

OK, last month I gave a 2 hour seminar to a major multinacional here in Brazil only on this topic.

Basically, KPIs are to calculate the productivity of an process but not in simple terms here can I give it to you.

You can do it on total costs, quality issues, time to market, customer satisfaction surveys, and more. For example, you MUST always improve your process, I use 7 key factors which 5 are above. If we did x in such a such time for y dollars, next quarter we will have an improvement of percentage for more production, for cheaper cost, qucker delivery time, and less failures after delivery.

If you do a Google search only on this, I would say you would get a week (10 hrs a day, 7 days a week) reading. This is why companies call in people like me, professional consultants with 40 years of experience to evaluate their interal processes. In addition, if you are internal to a company, you might not have a broad vision of similar in indudstry (called benchmarking) so you do not have a real view.

But in general KPIs are few, you never have many for any one department, any department KPIs must help the goals of the coorporation. For any KPI you have what is needed, how it will be measure, how often measure (quarterly is good), and what actions are you going to implement and follow that assure that your KPI will be met. And when it is not met, your headaches will begin. You follow some of them weekly even thou they migh be for quarterly, as end of quarter, you do not want to find out you are screwed. And if you met your KPIs, then you want to start tightening them up more (yes, you want to always better them) so you and your upper management will determine newer ones to achieve. If you achieve KPI goals, you do not want to fall back and say you have it made. NEVER. Go for GOLD.