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KPI Monitoring

KPI Monitoring

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Published by soontors1
KPI Monitoring
KPI Monitoring

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Categories:Types, Business/Law
Published by: soontors1 on Apr 26, 2010
Copyright:Attribution Non-commercial

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03/17/2013

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© 2005 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
Monitoring KPI
Nick HechtHP Internal Audit ±Corporate Finance
 
 April 26, 20102
Monitoring Methods
There are three monitoring methods used when monitoringKPI data
1.TREND:
Look at trends over time. Look at the KPI graph and seeif the trend is up or down over time. Any prolonged trend could bea sign that a process has changed or that significant assignablechange is occurring in the system. A prolonged trend is seen asmore than 3 consecutive + or _ 
2.CHANGE:
Look at the percentage change period to period(month to month). If there is a significant change from one monthto the next, then unnatural variation ±or a significant change hasoccurred. Unnatural variation is seen as any data point greater than two standard deviations from the mean.
3.BENCHMARKING:
Look at metrics of a system that is known tobe stable and compare these metrics to another system.
 
 April 26, 20103
1. Example of a trend
íConsider that any pattern of data (upward movement, downward movement, valuesabove the mean, values below the mean) that continues for 
more
than
FOU
R
datapoints is likely due to assignable variation. This APL example constitutes a significanttrend because more than four data points in a row have increased. The next step is toask what is the explanation of this trend over time. Note: there may be validexplanations for trends and some trends may be a sign of good management, but thequestion to ask is why are the trends occurring, and is management aware of them?
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