Key success factors of KPIs

in Operational Excellence
Webinar: BearingPoint & KPI Library
October 9th 2012

Confidentiel. 2012 BearingPoint

To improve you have to measure results.

but will
measurements and
targets
automatically
stimulate the
required behavior?
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What happens in real life.

Not the right Measurements

Too high level
Not the right frequency
No trending
Targets not SMART

No People involvement
No Interaction
No Gemba
No Positive focus

No recognizable Structure
No link between what we measure and what we want to
achieve

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Success factors for KPIs in Operational
Excellence

Use the
correct
KPIs

Create a
recognizable
structure

Establish
the right
behavior

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Success Factor I:
Use the correct KPIs

Market Share Strategic objective

Customer Satisfaction Primary driver

Price Quality Service level External KPI

Delivery Internal KPI

On Time in Full

Planning Capacity Efficiency Enablers

Pieces
Performance indicator
per manhour

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Success Factor I:
Use the correct KPIs

KPIs need to:

Be SMART

Be measured in the right frequencies

Show trends

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Success Factor II:
Create a recognizable structure.

Realizing Strategy

Quick High
Low cost
response quality

SPEED QUALITY

Smoothing
Six Sigma
workload

Mistake
Flow
proofing

Early
Pull system
warning

STABLE FOUNDATION

Total Productive Management

Elimination of Waste
Standardized work
Visual Management

5S (Sort Straighten Shine Standardize Sustain)

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Success Factor II:
Create a recognizable KPI-structure

Business Unit ABC

SPEED QUALITY

Days Sales Training plan First Time

Outstanding compliance Pass Rate

66%
42 Days 98,3%
Production Illness
Customer
Throughput
complaints
Time
4,3%
5 Days 0
STABLE FOUNDATION

Overall Equipment Effectiveness 76%

5S audit compliance 45%

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As daily used by our clients

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 with a Drilldown to every detail!

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Key success Factor III:
Establish the right behavior

Share performance

Show involvement (Gemba)

Create involvement

Focus on the positive

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 Key Conclusions

Its
important to
measure the
right KPIs

Its important
to create a
recognizable Its important to
KPI-structure create involvement
by establishing the
right behavior

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How to start?

If Then Why

1. You have Excel Use KPI Library and To ensure

based KPIs train usage involvement by easy
access and direct
feedback
2. You have an Check and develop To ensure a good and
incomplete set of missing KPIs useful dashboard
KPIs

3. You have no good Set-up a KPI To ensure reaching

structure behind structure linked to corporate objectives
your KPIs corporate objectives in a structured way

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Questions

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Your contact

Hubrecht de Pree
Operational Excellence Lead
BeNeLux

ITO Tower
Gustav Mahlerplein 62 (8th floor)
NL 1082 MA Amsterdam Mobile: +31 6 5254 2777
www.bearingpoint.nl hubrecht.depree@bearingpoint.com

For more Operational Excellence information follow

http://www.bearingpoint.com/en-nl/download/Operational_Excellence_Program.pdf

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