KPI

Why is adjusted KPI important?

You cannot be rewarded for non-controlled success

Is breakdown of KPI or ultimate kPI important?

Only breakdown can tell the truth.

operation process KPI, employee selection KPI, partnership KPI, system KPI, process KPI, management KPI, SLA

Why we shall use moving KPI?

It takes into account of current conditions

Is there developed cross functional KPI?

No yet.

Is KPI conclusive?

Not conclusive. Benchmarking should be used as well.

Shall reward base on KPI?

Yes, after adjustment

Shall commission base on sales alone?

No, it should be based net profit

What should be removed to achieve fair KPI?

• uncontrollable factor, repair, cyclical change, exchange rate, interest rate, tax rate, oil costs
• tax adjustment
• error or mistake

Shall we have lost customer KPI?

Yes, it helps to alert

Is below KPI an alert?

Yes, it is an alert

Is customer concentration ratio a KPI for measuring revenue risk?

Yes, the higher the concentration ratio the higher the risk

Is individual cost KPI necessary?

Yes

Is Business strategy KPI necessary?

Yes

What numbers are relevant for KPI?

• Number of new products and service per year, compulsory and independent rating which measures the effort and the choices offered
• Number of expired products by reasons such as maturity or change in market condition which measures avoidance of inefficiency
• Number of existing products to be changed to outsourcing which measures the degree of external competition
• Number of product or service to be enhanced which back checks the degree of the past performance
• Number of staff exceeding KPI and below KPI which provides the key information for reward and punishment scheme
• Number of products or service adopted by less developing countries and developed countries which measures the degree of competition internationally
• Number of products or service that final consumer is willing to pay which measures the degree of competition in local market
• Number of products or services that are offered free of charges which shows the audit target of the potential misallocation of resources

How to set up reward or punishment for staff KPI?

• Rotation to another products or service for staff below KPI as a punishment
• Promotion and new product or service development opportunity only for staff with recurring exceeding KPI as a reward
• If staff below KPI cannot be allocated to particular products or services, it should be allocated to idle cost centers (not a lay-off but a warning of improvement needed).
• Each products or service should have a business owner who determine whether to accept resources from idle cost center

How to create environment for change?

• Suggestion scheme with reward by prize or annual leave
• Inter-ship with less cost and high pressure for talent idea
• Department improvement like backup, successor, hand over list and rotation of duty training
• Cross functional training by supervisors or managers
• Cross functional improvement performance bonus (Mr Cheng regular direct involvement is necessary to show support, to add fairness independence
• Workflow, Remove imbalance, KPI, Performance Bonus
• Reporting
• Auditing

How to Set up real performance measurement system for remote offices?

• Performance should be linked to pay after considering joint effort, e.g. sales performance is not only related to turnover but also cost control and risk management, sales performance is partly contributed by good service controlled by operation
• Remove all the imbalances of right & responsibility, e.g., tax, depreciation, interest and selling price are not under the control of operation management
• Remove arbitrary cost allocation

What are trucking cost KPI?

• No of kilo, KM, No of trip, waiting time per day, loading per truck, return load ratio
• Oil price per unit, volume of oil, volume of oil per KM
• amount of repair per truck/driver
• No of accident per driver
• Total ownership of cost per truck type
• Effective finance cost per year
• Effective VAT tax
• Average loading factor per truck per routing per truck size
• Administration costs per shipment
• Waiting time per ride
• Driver turnover rate
• No of robbery
• No of claim
• No of compensation
• No of credit note
• No of missed order
• No of loss making quote
• Trend in delivery time, distance and waiting time
• Level of idle truck
• Idle space per truck

What are KPI for Transport planner, Driver and pick up?

• Loading factor per truck per truck type per ride
• Idle time for truck
• No of traffic congestion
• No of ride per truck per truck type
• Revenue per LCL per ride

What are finance KPI?

• Credit, Billing, Collection
• Cash receipt
• Cashflow
• Payment
• Investment appraisal
• Date entry
• On time delivery of financial report and information
• P & L accuracy
• Balance sheet items
• Corporate Compliance
• Tax compliance

What are KPI for payment?

• % of on time payment
• % of payment before deadline
• Amount of penalty for late payment
• Amount of payment before contract
• Amount of payment not complied with SOP
• No of time-do not hold payment as communicated by other departments
• Over payment and duplicate payment
• No stop run or bad impact on operation as a result of late payment

What are KPI for billing?

• No and amount of bad debt
• % of billing accuracy
• % of no credit evaluation
• % of over credit limit
• % of dispute settled within 7 days
• DSO>45 days
• Overdue %>60 days

What are KPI for procurement?

of total value purchase materials according to the budget

• % of Order supply comply to required Specification
• % of proven qualified vendors within all category material to be at least 5 vendors
• % Delayed issue Purchase order
• # day of Lead time issue PR to PO at Sumuranja (working days)
• # day of Lead time issue PR to PO at Head Office (Calendar weeks)
• % of order value with payment term ≥ 45 days through negotiation at time of order
• # of defective purchased items for project at delivery
• # of Placing no order direct to manufacture if meet to project schedule
• % of external audit finding
• % of incomplete vendors export / import document
• % fulfillment of port authority permitIPc7
• % fulfillment of export/import document% late project delivery cause of late payment
• % of yard operation interruption cause of late payment (utility & consumable)
• Delayed process procurement compare to breakdown Master Procurement schedule from Master Project Schedule
• % improvement of Blanket orders placed to eliminate loss time production/construction man-hours due to non-availability consumable items

What are KPI for warehousing?

• storage accuracy
• right location
• dispatching mistake
• cargo damage
• warehouse condition, dock, leveler, hand pallet, forklift
• fire and humidity condition
• security system condition

What are consolidation KPI for truck?

• No of delivery points per routing
• % of return load
• Average Loading factor% per FCL per truck type
• No of truck per sq meter
• Average number of product transport per truck
• No of accident, delay and penalty, damage, wrong delivery, loss
• Total operation cost per kg per km

what is the key measurement indicator of team work?

cross functional workflow

what is the key measurement indicator of communication skill?

language, knowledge, listener, workflow, work study, highlight, graphical communication

what is the key measurement indicator of resulted oriented?

achievable, patience

What is the key measurement indicator of down to details?

KPI, average, max, min

What is the key measurement indicator of leadership?

KPI, reward, achievable strategy, willing to share, balanced life, win-win solution, growth strategy, extra-ordinary reward

What is the key measurement indicator of team work?

Partnership KPI, cross functional KPI

What are the key measurement indicators?

max, Kpi, min, average, percentage/Ratio, change in %/ moving trend