Optimizing KPIs with Balanced Scorecards

Optimizing Company’s KPIs with Balanced Scorecard
Oleh Yudho, ST
Senior Consultant - PT Proxsis Solusi Bisnis
Permata Kuningan Building Jakarta, 12-13 Juli 2012

Sasaran Program
Melalui program ini, diharapkan peserta nantinya akan
mempunyai kemampuan untuk:
1.Memahami konsep dasar Balanced Scorecard
2.Memahami manfaat Balanced Scorecard
3.Memahami bagaimana membangun strategy-focused
organization dengan menggunakan Balanced Scorecard
4.Memahami proses penyusunan Balanced Scorecard
5.Memahami proses penjabaran Corporate Scorecard
menjadi Departmental Scorecard
6.Memahami langkah-langkah implementasi Balanced
Scorecard
AGENDA
Hari Pertama
09:00-10.30 – Memahami Fungsi dan Peranan Pelatih Internal
10.30–10.45 - Break
10.45 -12:00 – Perencanaan Mengajar
12:00-13:00 – Break (Isoma)
13:00- 15.00 – Proses Presentasi (Video)
15.00–15.15 – Break
15.15-16.30 – Proses Presentasi (lanjutan)
Hari Kedua
Defining generic KPI’s
The PDCA-cycle
The Learning Organization
The political arena
Reinforcing desired outcome
Working with people
Nuts and BoldsSummary
-1-
TREN MANAJEMEN
1. Manajemen yang lebih fokus kepada kinerja
2. Penggunaan Teknologi Informasi
3. Penggunaan Competitive Analysis
4. Fast and Lean Management
5. Integrasi sistem manajemen
6. Pengembangan SDM yang lebih adaptif

What is Balanced Scorecard
BSC is a strategic tools for measuring
Organizational performance
BSC is an aid in creating a balance among various factors to be

considered
BSC emphasizes a balance between profits today

And preparedness for tomorrow
BSC provides a framework to describe and communicate

vision and strategy in consistent and insightful way, and
translate them into action
Balanced Scorecard
1. Financial (make a profit)
2. Customer (by satisfying your customers
needs)
3. Internal Processes (through being able to
deliver
value)
4. Learning and growth (by having the necessary

knowledge and tools available)
“ What gets measured, gets managed,
gets done”
Michael Porter
We don’t know what we don’t know
We can’t act on what we don’t know
We won’t know until we search
We won’t search for what we don’t question
We don’t question what we don’t measure
Hence, we just don’t know
Dr. Mikel J. Harry

Mengapa organisasi Membutuhkan pengukuran?
1. Kebutuhan akan instrumen untuk navigasi ke arah sukses
2. Mengetahui tingkat keberhasilan organisasi
3. Memiliki kerangka untuk menetapkan strategi dan sistem
manajemen
4. Memberikan arah bagi seluruh jajaran organisasi
5. Membangun komitmen
6. Pengukuran kinerja SDM
7. Membandingkan dengan organisasi lain

The existence of your business relies on :
• The Value proposition you offer to your stakeholders
• You ability to deliver that value, both short term and long
term
Objectives
Strategis Risks
Operation
Analysis
Mengapa Intellectual Capital sangat penting?
1. Kompetensi inti mendukung bisnis dan produk

2. Produk dan jasa adalah manifestasi sementara dari
kompetensi inti
3. Kompetensi makin berkembang bila digunakan
4. Dalam jangka panjang, kompetensi menentukan
keberhasilan dalam persaingan
Keseimbangan antara
 Ukuran Eksternal +  Ukuran Internal
• Pemegang saham • Proses bisnis
• Pelanggan • Pembelajaran & Pertumbuhan
 Ukuran proses / sebab

 Ukuran hasil / akibat + • Mendorong kinerja
• Hasil dari usaha sebelumnya mendatang
 Pendorog kinerja yang bersifat

 Ukuran kuantitatif + kualitatif
Menjadikan ukuran finansial dan non-finansial bagian
dari sistem informasi untuk semua tingkatan di dalam
perusahaan, sesuai porsi masing-masing
Personil di garis depan harus menyadari konsekuensi

finansial dari setiap kegiatan mereka
Para manager dan direktur harus memahami faktor

penggerak keberhasilan jangka panjang
Bagaimana kita harus menampilkan diri kepada pemilik dan
investor agar dinilai berhasil dan menarik untuk investasi
Contoh Financial Measures
1. Economic Value Added

2. Return on sales
3. Return on Assets
4. Return on Investment
5. Turnover of Cash Ratio
6. Debt to Equity Ratio
7. Average Collection Period
8. Inventory Turnover
9. Earning per Share
10. Price / Earning Ratio
Customer Perspective
Tanggapan pelanggaran seperti apa yang kita butuhkan agar

Sasaran Finansial tercapai, dan nilai apa yang kita berikan
kepada pelanggaran agar memperoleh tanggapan tersebut?
Contoh Customer Measures
1. Customer Satisfaction Index

2. Customer Complain Index
3. Delivery Time
4. Price Competitiveness
5. Service Level Index
Internal Process Perspective
Dalam proses apa kita harus unggul untuk mampu

memberikan nilai kepada pelanggan, dan akhirnya mencapai
Sasaran Finansial kita?
Learning and Growth Perspective
Apa yang perlu diubah dari prasarana dan modal intelektual

(Intellectual capital) kita untuk mencapai keunggulan
proses?
Contoh Prasarana (Infrastructure)
1. Gedung
2. Gudang
3. Kendaraan
4. Alat komunikasi
5. Komputer dan softwarenya

Contoh Model Intelektual
1. Pengetahuan
2. Kemampuan Manajemen
3. Semangat Tim
4. Sistem Organisasi
5. Prosedur Kerja
6. Pengembangan SDM
Manfaat Balanced Scorecard
1. Memperjelas dan menterjemahkan Visi dan strategi

2. Mengkomunikasikan dan menghubungkan sasaran strategis
dan ukuran kinerja
3. Merencanakan, menetapkan target dan menyelaraskan
4. Mengembangkan sistem umpan balik dan pembelajaran
-2-
Strategy and Operational Process
• Pandangan ke depan atau cita-cita yang ingin dicapai
oleh individu atau organisasi
• Menjawab pertanyaan : “seperti apa organisasi ingin
dikenal di masa yang akan datang?”
• Menunjukan arah bagi organisasi dan semua unsur
yang berada di dalamnya
Company
Means
Department
Means
Section
Means
Personal
Form a Management Control System
Design around a short-term, Control – Oriented
Financial Framework
Strategy
and
vision
Personal Review
Budget and
Incentive
Reorient
Planning and
Capital
Allocation
Budaya organisasi
Kepercayaan, Filosofi dan Gaya

Nilai-nilai, dan Manajemen
Perilaku bersama
Sistem Manajemen Norma-norma

dan Prosedur tertulis dan tidak
tertulis
Sifat Budaya Organisasi
 Setiap organisasi memiliki budaya yang berbeda

Budaya organisasi merupakan hasil dari sebagai faktor dan
kekuatan
Budaya organisasi mempengaruhi hasil dari berbagai faktor dan
kekuatan
Budaya organisasi berperan penting dalam perubahan
Budaya organisasi mengidentifikasikan nilai-nilai. Semangat dan
penghargaan
Karakteristik Budaya Organisasi
 Kuat atau lemah

 Selaras atau tidak selaras dengan strategi
 Adaptif atau tidak adaptif
Perusahaan yang memiliki budaya yang

Kuat tetapi tidak fleksibel dan tidak tepat
Akan sulit untuk bertahan
-3-
Translate the strategy
To operational terms
Mobilize Change Align

Through Executive The Principles 2 Organization to the
5
Leadership Of a Strategy Strategy
Focused
Organization
3
4
Make Strategy
Make Strategy a
Everyone’s Everyday Job
Continual Process
Translating a Mission into Desired Outcomes
Vision
What we want to be
Mission
Why we exist
Core Values
What we believe in
Strategy
Our game plan
Balanced Sorecard
Implementation and focus
Strategic Initiative
What we need to do
Personal Objectives
What I need to do
Strategic Outcomes
Satisfied Delighted Customers Effective Motivated and
Prepared Workforce
Shareholders Process
The Goal Support - Grid
Dept Dept Dept Dept

A B C D
Dept Sasaran
4,5

3
A A
Dept Sasaran
1,3,5 3,4 5
B
B
Dept 2,4
Sasaran
1,6
C C
Dept 6 2 1
Sasaran
D D
Financial EVA
Customer
Loyality
Customer
QCD
Business Process Process Quality Process

Cycle Time
Learning and Growth Employee Skills

-4-
Balanced Scorecard Process
Designed around a Longer-Term, Control-Oriented
Strategic View
Translating
The
Vision
Communicating Balanced Feedback

and Scorecard and
Linking Learning
Business
planning
Process of building a balanced scorecard
Vision
Internal / Learning
Financial Customer Business and Growth
Process
Strategic Strategic Strategic Strategic

Proxsis Proxsis Proxsis Proxsis
Critical Critical Critical Critical

Success Success Success Success
Factors Factors Factors Factors
Key Key Key Key

Performance Performance Performance Performance
Measures Measures Measures Measures
Action Plan
Strategic Proxsis
Merupakan penjabaran dari visi dan sebagai
Panduan untuk menentukan ukuran dalam mencapai visi.
Menjawab pertanyaan : “bila Visi tercapai, apa yang berbeda

dibanding perusahaan lain?”
Critical Success Factor
Merupakan faktor-faktor yang menjadi
Kunci keberhasilan bagi organisasi
Untuk mencapai strategic Proxsis.
Key Performance Measures
Merupakan ukuran utama bagi perusahaan

Yang menunjukan arah strategis
Dresco Department Store
Visi : Menjadi department store terbaik dan merupakan
pilihan utama pelanggan
Misi : Menyediakan busana dan produk pendukung yang

bernilai tinggi bagi pelanggan yang menyenangi
penampilan yang baik (smart dresser) dan memberikan
kesejahteraan bagi semua pihak terkait (stakeholders)
BSC to Objectives
KPM Objective
Finance
=
V
I Customer
S
I +
O Process
N
+
Learning
-5-
Objectives to Mgt Plan
Objectives
Cause & Effect Improvement
Mgt Plan Evaluation
Approval Implementation
Cause & Effect
Objective
Effect
Causes
Management Plan
Action Time Deliver-

KPM Objectives Budget PIC
Plan Frame ables

Evaluation of Management Plan
Action Corrective
KPM Objectives Results Variance PIC
Taken Action

Manfaat Aset Tanpa wujud (Intangible Assets)
1. Mengembangkan customer relationship
2. Memperkenalkan produk yang inovatif
3. Mewujudkan produk yang bermutu tinggi dan kompetitif
4. Membangkitkan produk yang bermutu tinggi & kompetitif
5. Menciptakan suasana perbaikan
6. Beradaptasi terhadap teknologi informasi
Tangible Versus Intangible Assets
Tangible Assets Intangible Assets
Readly Visible Invisible
Rigorously quantified Difficult to quantify
Part of the balance sheet Not tracked through accounting
Investment produces known returns Assessment based on assumptions
Can be able easily duplicated Cannot be bought or imitated
Depreciates with use Appreciates with purposeful use
Has finite applications Has multiple applic. Without value reduction
Best managed with “scarity” mentality Best managed with “abudance” mentality
Best leveraged through control Best leveraged through alignment
Can be accumulated and store Dynamic, short shelf life when not in use
Top Ten Nonfinancial Variables
Variable
Execution of corporate strategy
Management credibility
Quality of corporate strategy
Innovation
Ability to attract and retain talented people
Market share
Management Expertise
Alignment of compensation with shareholders’ interest
Research Leadership
Quality of major business processes
Building Strategy
Sourcing and Distribution
Measurement Target Initiative
Theme

* Operating * 20 % increase
Profitability
Financial Income
Revenue * Same store * 12 % increase * likes program

Growth
Growth
* Return rate
* Quality
Customer - quality * Recude by 50 % Management
- other each year
* Customer Loyality
Product Shopping * Customer
- Ever active * 60 %
Experience Loyality
Quality - # units * 2.4 units

Internal
* Merchandise from * Corporate
* 70 % by year 3
"A" Factories Factory
"A" Class Line Plan Developmnet
Mgt. * 85 %
Factories * Items in stock Program

* strategic skills
Learning * % of strategic
* Year 1 (50 %) plan
Factory
Merchandise
skills available
Relationship Buying/plan Year 3 (75%) * Merchants'
Skills Systems * Strategic systems
Desktop
vs plan
Year 5 (90%)

BSC to Quality Objectives
KPM Q Objective
Finance
=
V
I Customer
S
I +
O Process
N
+
Learning
-5-
Definition
KPI merupakan indikator atau ukuran yang

digunakan untuk mengukur level pencapaian
kinerja atas sasaran strategi yang telah
ditentukan.
KPI = Key Performance Indicator
Objectives
• Meningkatkan pemahaman KPI personil dan apa yang
mereka tunjukan.
+ =
• Meningkatkan kesadaran personil mengenai pentingnya

menjaga kinerja.
What is a KPI?
KPIs track performance against established key success factors.
• KPIs are directly linked to the overall goals of the company.

• Business Objectives are defined at corporate, regional and site level.
These goals determine critical activities (Key Success Factors) that
must be done well for a particular operation to succeed.
• KPIs are utilised to track or measure actual performance against key
success factors.
– Key Success Factors (KSFs) only change if there is a fundamental shift in business
objectives.
– Key Performance Indicators (KPIs) change as objectives are met, or management
focus shifts.
Business Key Success Key
Objectives Factors (KSFs) Performance
Determine. Tracked by. Indicators (KPIs)
No Injuries Safety LTI, LTIFR, LTISR.

How do I interpret a KPI?
Interpretation of KPIs is KPI dependent.
KPIs do NOT give answers, rather they raise questions and direct
attention.
Business Key Success Key
Objectives Factors (KSFs) Performance
Determine. Tracked by. Indicators (KPIs)
No Injuries Safety LTI, LTIFR, LTISR.
• If LTI, LTIFR or LTISR increase, this indicates that the business

objective, “No Injuries”, is NOT being fulfilled.
– This should direct attention to the SAFETY key success factor.
– Problems / Issues should be identified and resolved with a view to decreasing safety
KPIs and therefore achieving the business objective.
• If LTI, LTIFR or LTISR decrease, this indicates that the business

objective, “No Injuries”, is being fulfilled.
– This indicates safety practices / mechanisms are proving successful.
What influence do I have on KPIs?
Every person on-site has an influence on certain KPIs and business
objectives.
Senior Foremen Crew
• LTIFR • LTIFR
• Incidents • Incidents
• Property damage ($) • Property damage ($)
• Cost / unit • Mean time to repair
• Cost / hour
• Cost of quality
• Maintenance
effectiveness
• Maintenance efficiency
• Mean time between
failure
• Mean time to repair
Maintenance KPIs
Seventeen (17) primary maintenance KPIs to be utilised.
– These KPIs will be utilised across the site’s Maintenance Departments.
KPIs
• LTIFR (both production and maintenance)• Backlog
• Maintenance Cost per Unit vs. Budget • % Scheduled Man Hours Planned
• Maintenance Cost per Hour vs. Budget • % Schedule Compliance
• Cost of Quality • % Planning Effectiveness
• Maintenance Effectiveness • % Man Hours Available
• Maintenance Efficiency • % Rework
• Mean Time Between Failure (MTBF) • % Failures Investigated
• Mean Time to Repair (MTTR) • MIP Process Effectiveness
• Preventive Inspection Effectiveness
• Ratio of Preventive to Breakdown
Maintenance
LTIFR
Lost Time Injury Frequency Rate
• LTIFR is a measure of overall safety performance, and indicates the
frequency of Lost Time Injuries (LTIs).
Number of Lost Time Injuries 
Formula LTIFR =   x 1,000,000
 Total Man Hours 
– Total man hours includes wages, staff and contractor hours associated with both
production and maintenance operations.
• Personnel are getting injured.

• Safety practices / mechanisms are
ineffective.
• Incident reporting is increasing.
Interpretation LTIFR
LTIFR<<55
• Personnel are NOT getting injured.
• Safety practices / mechanisms are effective.
• Incident reporting is reducing.
Maintenance Cost per Unit vs. Budget
• A measure of the maintenance effort required for a piece of equipment
(or plant) to generate a unit of production.
Total Maintenance Cost
Formula Maintenance Cost per Unit =
Unit of Production
– Total maintenance cost includes total costed maintenance man hours, parts and any
other costs associated with the maintenance effort (preventive and corrective).
– Unit of production will match the associated departments current unit.
• Maintenance effort required is increasing.

• Maintenance practices / mechanisms are ineffective.
• Operating conditions are deteriorating.
• Equipment is being over maintained.
• Maintenance cost budgeting was inaccurate.
• Maintenance requirements changed during the fiscal
Interpretation year.
Maintenance
MaintenanceCost
Costper
perUnit
Unitvs.
vs.Budget
Budget
• Maintenance effort required is decreasing.
• Maintenance practices / mechanisms are effective.
• Operating conditions are improving.
• Maintenance requirements changed during the fiscal year.
Maintenance Cost per Hour vs. Budget
• A measure of the maintenance effort required to generate production
time from a piece of equipment (or plant).
Total Maintenance Cost
Formula Maintenance Cost per Hour =
Operating Time
– Total maintenance cost includes total costed maintenance man hours, parts and any
other costs associated with the maintenance effort (preventive and corrective).
– Operating time is productive time plus production delays.

• Maintenance requirements changed during the fiscal
year.
• Budgeted operating time reduced.
Interpretation Maintenance
MaintenanceCost
Costper
perHour
Hourvs.
vs.Budget
Budget
• Maintenance requirements changed during the fiscal year.
• Budgeted operating time increased.
Cost of Quality
• A measure of preventive maintenance effect on corrective and total
maintenance costs.
Concept
Cost of Quality (cont.)
– Total maintenance cost, or cost of quality, is the sum of preventive and corrective
maintenance costs.
– Preventive maintenance cost is the cost associated with maintenance carried out at
predetermined intervals or other prescribed criteria intended to reduce the probability of
failure or degradation of performance of equipment (or plant).
– Corrective maintenance cost is the cost associated with maintenance carried out on a
defect which has caused equipment (or plant) to be taken out of service during scheduled
operating time. Corrective maintenance can be either planned or unplanned.
• Preventive maintenance effort decreasing.

• Corrective maintenance effort increasing.
• Preventive maintenance effort excessive (beyond
Interpretation optimum).
Cost
Costof
ofQuality
Quality
• Preventive maintenance effort is increasing.
• Corrective maintenance effort in decreasing.
• Preventive to corrective maintenance ratio optimised.
Maintenance Effectiveness
• A measure of the amount of maintenance downtime required to keep
equipment (or plant) operating.
 Operating Time 
Formula Maintenance Effectiveness =   x 100%
 Operating Time + Down Time 

– Down time is the total time equipment (or plant) is down for maintenance work
(preventive and corrective).

MaintenanceEffectiveness
Effectiveness>>95%
95%
Maintenance Efficiency
• A measure of the maintenance effort required to deliver required
performance levels from equipment (or plant).
 Maintenance Man Hours 
Formula Maintenance Efficiency = 
 Operating Time
 x 100%

– Maintenance man hours is the actual maintenance man hours spent maintaining an item
of equipment (or plant). Maintenance man hours includes maintenance wages, staff and
contractor hours (preventive and corrective).

MaintenanceEfficiency
Efficiency
MTBF
Mean Time Between Failure
• The average amount of operating time between consecutive
breakdowns for an item of equipment (or plant).
Operating Time
Formula MTBF =
Number of Failures or Breakdown Events

– Number of failures or breakdown events is the number of failures on an item of
equipment (or plant).

• Failure frequency is decreasing.
Interpretation MTBF
MTBF
• Failure frequency is increasing.
MTTR
Mean Time To Repair
• The average maintenance time required to keep an item of equipment
(or plant) operational.
Down Time
Formula MTTR =
Number of Failures or Breakdown Events
– Down time is the total time equipment (or plant) is down for maintenance work
(preventive and corrective).
– Number of failures or breakdown events is the number of failures on an item of
equipment (or plant).

• Poor clean-up (work preparation) practices.
• Ineffective work practices.
Interpretation MTTR
MTTR
• Clean-up (work preparation) practices effective.
• Effective work practices.
Preventive Inspection Effectiveness
Ratio of Preventive Repair Man Hours to Preventive Inspection Man
Hours.
• A measure of preventive inspection effectiveness.
Preventive Repair Man Hours
Preventive Inspection Effectiveness =
Preventive Inspection Man Hours
Formula
– Preventive repair man hours is maintenance that is performed as a result of a preventive

inspection.
– Preventive inspection man hours is work performed that originates from equipment
maintenance strategies; ie. planned services and inspections.
• Preventive inspections are effective.

• Inspection frequency to low.
• Preventive inspection conducted effectively.
Preventive
PreventiveInspection
InspectionEffectiveness
Effectiveness
• Preventive inspections are ineffective.
Interpretation • Preventive inspections are conducted
ineffectively.
• Inspection frequency to high.
Ratio of Preventive to Breakdown Maintenance
Ratio of Preventive Man Hours to Breakdown Man Hours.

• A measure of planning / scheduling process effectiveness and its
influence on breakdown maintenance.
Formula Ratio of Preventive
to Breakdown Maintenance =
Preventive Repair Man Hours + Preventive Inspection Man Hours
Breakdown Man Hours
– Preventive repair man hours is maintenance that is performed as a result of a preventive

inspection.
– Preventive inspection man hours is work performed that originates from equipment
maintenance strategies; ie. planned services and inspections.
– Breakdown man hours is unplanned corrective maintenance that must occur due to a defect
causing equipment (or plant) to be taken out of service during scheduled operating time (NOT
corrective maintenance man hours).
• Over maintaining equipment.

• Preventive maintenance practices / strategies are too
effective and should be optimised (optimise costs).
Ratio
Ratioof
ofPreventive
Preventiveto
toBreakdown
BreakdownMaintenance
Maintenance==16
16
Interpretation
• Preventive inspections are ineffective.
• Faults not being reported.
• Preventive maintenance practices / strategies are
ineffective.
Backlog
• All maintenance work identified to be done, but as yet incomplete.
Indicates how much outstanding maintenance work exists compared to
the resources available to complete the work.
• Formula Backlog = Total M aintenance M an Hours on Outstanding W ork Orders
– Total maintenance man hours on outstanding work orders currently includes both
backlog and forward log.
• Build up of jobs.
• Insufficient labour.
• Preventive inspections are effective (Work identified).
Interpretation Backlog
Backlog<<1,800
1,800man
manhours
hours
• Preventive inspections are ineffective (No work identified).
• Too much labour.
% Scheduled Man Hours Planned
• The percentage of scheduled man hours that appear on the weekly
schedule that have been planned. A measure of planning process
effectiveness.  Planned Man Hours on Weekly Schedule 
% Scheduled Man Hours Planned =   x 100%
• Formula  Total Weekly Scheduled Man Hours 
– Planned man hours on weekly schedule is the total planned maintenance hours on the
weekly maintenance schedule.
– Total weekly scheduled man hours is the total maintenance man hours scheduled for
the week (NOT total maintenance man hours available).
• High level of planned work in backlog.

• Minimal job delays.
• Maintenance practices / mechanisms are
effective.
%
%Scheduled
ScheduledMan
ManHours
HoursPlanned
Planned>>80%
80%
Interpretation • Priority work not being planned.
• Lack of planned work in backlog.
% Scheduled Compliance
• A measure of scheduling process compliance.
 Scheduled Man Hours Completed 
Formula % Scheduled Compliance =   x 100%
 Total Weekly Scheduled Man Hours 
– Scheduled man hours completed is the actual man hours spent performing scheduled
maintenance.
– Total weekly scheduled man hours is the total maintenance man hours scheduled for
the week (NOT total maintenance man hours available).
• Priority jobs being completed.

• Planned repairs, PM’s being executed.
• Maintenance / Production Department
communication /
cooperation effective (Access to equipment).
• Insufficient scheduled man hours to conduct
maintenance.
%
%Scheduled
ScheduledCompliance
Compliance>>80%
80%
Interpretation
• High level of breakdowns / interruptions.
• Maintenance / Production Department communication /
cooperation ineffective (Access to equipment).
• To many scheduled man hours to conduct maintenance.
% Planning Effectiveness
• A measure of planning process compliance.
 Number of Scheduled Jobs Completed with Comments 
Formula % Planning Effectiveness = 
 Total Number of Scheduled Jobs Completed


x 100%
– Number of scheduled jobs completed with comments is the number of scheduled jobs
completed with comments on the job ticket identifying issues / problems with the planning
process.
• Minimum requirements for a planned job not

understood.
• Schedule compliance low.
• High level of job delays.
cooperation ineffective (Access to equipment).
%
%Planning
PlanningEffectiveness
Effectiveness<<20%
20%
Interpretation • Planned requirements well understood.
• Schedule compliance high.
cooperation effective (Access to equipment).
• Job ticket comments not being completed.
% Man Hours Available
• Primarily a measure of attendance, but also a useful tool to track
training and future manpower requirements. Indicates effective
utilisation of man power.  Total Man Hours Paid - Absence from Work 
% Man Hours Available =   x 100%
 Total Man Hours Paid 
• Formula
– Absence from work is man hours associated with absenteeism, training and any other
diversion from an employees primary function.
• Lack of employee development.

• Lack of training.
• Reduction in absenteeism.
• Core function (maintenance) being fulfilled.
%
%Man
ManHours
HoursAvailable
Available
Interpretation • Absenteeism.
• Excessive training.
• Core function (maintenance) not being fulfilled.
% Rework
• Maintenance action that is a repeat of a previous, ineffective effort. The
work could have been ineffective due to poor workmanship, poor
design, or improper procedures.
Rework Man Hours 
• Formula % Rework =   x 100%
 Maintenance Work Hours 
– Rework man hours is man hours associated with a maintenance action that is a repeat
of a previous, ineffective effort.
– Maintenance man hours is the actual maintenance man hours spent maintaining an item
of equipment (or plant). Maintenance man hours includes maintenance wages, staff and
contractor hours (preventive and corrective).

• Poor design.
• Poor operating practices.
Interpretation %
%Rework
Rework<<20%
20%
• Good design.
% Failures Investigated
• Measure of the Maintenance Department’s effort to continuously
improve.  Number of Corrective Job Tickets Investigated 
% Failures Investigated =   x 100%
 Total Number of Corrective Job Tickets 
Formula
– Number of corrective job tickets investigated is the number of job tickets investigated,
root cause found, and solutions investigated to prevent future occurrences. Job tickets
that are associated with maintenance work performed on defects which caused
equipment (or plant) to be taken out of service during scheduled operating time.
– Total number of corrective job tickets is the total number of job tickets associated with
maintenance work performed on defects which caused equipment (or plant) to be taken
out of service during scheduled operating time.
• Improved equipment reliability.

• Continuously improving maintenance
practices / mechanisms.
%
%Failures
FailuresInvestigated
Investigated>>80%
80%
Interpretation
• Repetitive equipment failures.
• Repetitive job delays.
• Continuous improvement of maintenance
practices /
mechanisms is not occurring.
MIP Process Effectiveness
• Measure of the Maintenance Department’s effort to continuously
improve.
Concept
– MIP process effectiveness is a combination of the maintenance KPIs, schedule

compliance, planning effectiveness and backlog.
• Maintenance effort is improving.

• Maintenance mechanisms / practices are improving.
• Improved equipment reliability.
• Backlog is decreasing.
MIP
MIPProcess
ProcessEffectiveness
Effectiveness>>80%
80%
Interpretation • Maintenance effort is deteriorating.
• Maintenance mechanisms / practices are not
improving.
• Equipment reliability is deteriorating.
• Backlog is increasing.
Summary
KPIs track performance against established key success factors.
Interpretation of KPIs is KPI dependent.

KPIs do NOT give answers, rather they raise questions and direct
attention.
Every person on-site has an influence on certain KPIs and business
objectives.
Seventeen (17) primary maintenance KPIs to be utilised.
–These KPIs will be utilised across the site’s Maintenance Departments.
• Systems and mechanism implemented to address business objectives

(key success factors) can always be improved.
– A continuous improvement (CI) philosophy should be adopted.
TERIMAKASIH
Semoga training ini dapat membantu Anda dalam
penerapan ditempat kerja
SEMINAR AND TRAINING IPQI PROGRAM
Indonesia Productivity and Quality Institute
Head office
Permata Kuningan Building - Kawasan Epicentrum
Jl. Kuningan Mulia Kav. 9C Jakarta 12980
Tel: (+62) [21] 522 9030/ 1
Fax: (+62) [21] 522 9032
Email: training@ipqi.org
www.ipqi.org and www.proxsis.com
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Optimizing Company’s KPIs with Balanced Scorecard

Permata Kuningan Building Jakarta, 12-13 Juli 2012

1. Manajemen yang lebih fokus kepada kinerja

2. Penggunaan Teknologi Informasi

3. Penggunaan Competitive Analysis

4. Fast and Lean Management

5. Integrasi sistem manajemen

6. Pengembangan SDM yang lebih adaptif

BSC is an aid in creating a balance among various factors to be

BSC emphasizes a balance between profits today

BSC provides a framework to describe and communicate

4. Learning and growth (by having the necessary

Dr. Mikel J. Harry

1. Kebutuhan akan instrumen untuk navigasi ke arah sukses

2. Mengetahui tingkat keberhasilan organisasi

3. Memiliki kerangka untuk menetapkan strategi dan sistem

4. Memberikan arah bagi seluruh jajaran organisasi

6. Pengukuran kinerja SDM

7. Membandingkan dengan organisasi lain

• The Value proposition you offer to your stakeholders

1. Kompetensi inti mendukung bisnis dan produk

 Ukuran proses / sebab

 Pendorog kinerja yang bersifat

Personil di garis depan harus menyadari konsekuensi

Para manager dan direktur harus memahami faktor

1. Economic Value Added

Tanggapan pelanggaran seperti apa yang kita butuhkan agar

1. Customer Satisfaction Index

Dalam proses apa kita harus unggul untuk mampu

Apa yang perlu diubah dari prasarana dan modal intelektual

5. Komputer dan softwarenya

1. Memperjelas dan menterjemahkan Visi dan strategi

Kepercayaan, Filosofi dan Gaya

Sistem Manajemen Norma-norma

 Setiap organisasi memiliki budaya yang berbeda

 Kuat atau lemah

Perusahaan yang memiliki budaya yang

Mobilize Change Align

Dept Dept Dept Dept

Business Process Process Quality Process

Learning and Growth Employee Skills

Communicating Balanced Feedback

Strategic Strategic Strategic Strategic

Critical Critical Critical Critical

Key Key Key Key

Menjawab pertanyaan : “bila Visi tercapai, apa yang berbeda

Merupakan ukuran utama bagi perusahaan

Misi : Menyediakan busana dan produk pendukung yang

Cause & Effect Improvement

Mgt Plan Evaluation

Action Time Deliver-

Rigorously quantified Difficult to quantify

Part of the balance sheet Not tracked through accounting

Investment produces known returns Assessment based on assumptions

Can be able easily duplicated Cannot be bought or imitated

Depreciates with use Appreciates with purposeful use

Has finite applications Has multiple applic. Without value reduction

Best leveraged through control Best leveraged through alignment

Revenue * Same store * 12 % increase * likes program

KPI merupakan indikator atau ukuran yang

• Meningkatkan kesadaran personil mengenai pentingnya

• KPIs are directly linked to the overall goals of the company.

No Injuries Safety LTI, LTIFR, LTISR.