You who manage or who own a business, need information to make decisions and one way to obtain them is through the famous KPIs.
KPI comes from the expression Key Performance Indicator (key performance indicator) which are metrics (form of measurement) of some activity in development. This practice started in the early 19th century in Scotland, at Robert Owens’ cotton mills, which started to monitor the performance of its workers.
A good KPI must be relevant, measurable, have periodicity and have a person responsible for monitoring and managing it
It is easier to explain with examples:
For maintenance of machines and equipment we have indicators with MTBF (Mean Time Between Failures); MTTR (Mean Time To Repair), OEE (Overall Equipment Effectiveness), Downtime (Equipment Downtime), LCC (Life Cycle Cost), among others.
For production management, we have: Installed Capacity, Hours Worked, Man / Hour Productivity (for example: parts assembled per hour), etc.
For a sales department we can have: Number of new Customers, Average Ticket, Conversion Rate, Success rate of budgets, etc.
You can create your metrics for any sector of the company yourself.
Always remember: “What cannot be measured cannot be managed”
With LAECAM’s experience we can help you build a robust system for the intelligence and success of your business.
Luis Santos
LAECAM Co-Founder