Chap 4.3: Key Performance Indicators (KPIs)

Front

Define KEY PERFORMANCE INDICATORS (KPIs)

Back

Key Performance Indicators (KPIs) are criteria used to measure the EFFICIENCY and EFFECTIVENESS of business’s performance.

Front

Define EFFICIENCY

Back

EFFICIENCY refers to how well the business uses its resources

Front

Define EFFECTIVENESS

Back

EFFECTIVENESS refers to whether or not the business achieves its stated objectives.

Front

List 10 KPIs ?

Back

1.      Net profit figures

2.      Number of sales

3.      % of market share

4.  Rate of productivity growth

5.      Level of wastage

6.      Rate of staff absenteeism

7.      Level of staff turnover

8.      Number of workplace accidents

9.      Number of website hits

10.  Number of customer complaints

Front

Define "NET PROFIT FIGURES" KPI

Back

Net profit is calculated by Total Revenue subtract Total Expense

Front

Define "NUMBER OF SALES" KPI

Back

Measure the amount of goods/service sold

Front

Define "PERCENTAGE OF MARKET SHARE" KPI

Back

The business’s share of the total industry sales for a particular good or service, expressed as a percentage.

Front

Define "RATE OF PRODUCTIVITY GROWTH" KPI

Back

The change in productivity in one year compared to the previous year

Front

Define "LEVEL OF WASTAGE" KPI

Back

The amount of unwanted or unusable material created by the production process of a business

Front

Define "RATE OF STAFF ABSENTEEISM" KPI

Back

The number of workers who do not turn up for work when they are scheduled to do so