IJIEM (Indonesian Journal of Industrial Engineering & Management) Vol 2 No 3 October 2021, 189-197

Available online at: [Link]

IJIEM (Indonesian Journal of Industrial Engineering & Management)

ISSN (Print) : 2614-7327 ISSN (Online) : 2745-9063

Key Performance Indicators Implementation: Literature Review

and Development for Performance Measurement
Welly Atikno1*, Indra Setiawan2, Deni Ahmad Taufik3
1
PT. Surveyor Carbon Consulting Indonesia, Jakarta 12870, Indonesia
2
PT. Yamaha Music Manufacturing Asia, Bekasi, Jawa Barat 17520, Indonesia
3
PT. Pertamina Hulu Energy Offshore North West Java, Jakarta 12520, Indonesia

ARTICLE INFORMATION A B S T R A C T
Article history:
Recently a Key Performance Indicators (KPIs)
Received: 17 June, 2021 performance measurement tool is developing very rapidly.
Revised: 8 July, 2021 KPIs have a very important meaning for a company. This
Accepted: 3 August 2021
paper aims to identify KPIs and classify them based on
Category: Review paper different perspectives such as publication by region,
publication of industrial sector, publications by years,
Keywords:
benefits implementing and development for perfomance
Europe
HSE measurement. This research is based on a literature review
Key performance indicators of article based on KPIs in the European region between
Performance measurement 2015-2020. The implementation of these KPIs can be
implemented in many organizations, such as
manufacturing, service, health and research. KPIs can
provide changes to an organization that implements them.
KPIs themselves can be distinguished in many ways. There
are KPIs for information technology, finance, maintenance
management, production processes, design dan PPIC. This
paper provides benefits for further research to increase
literature and understanding regarding the implementation
of KPIs.
This is an open access article under the CC–BY-NC license.
*Corresponding Author
Welly Atikno
E-mail: wellbjbs2@[Link]

1. INTRODUCTION In fact, without employees who can work well,

the company will not run well. Without a large
Recently, a Key Performance Indicators (KPIs)
profit, the company can go bankrupt overtime
performance measurement tool is developing
or stay quiet as a small-scale business.
very rapidly. KPIs have a very important
meaning for a company. KPIs are management
The importance of KPIs for a company means
tools or instruments so that an activity or
that their existence cannot be taken lightly.
process can be followed, controlled and
That is, the development of indicators used
ensured to achieve the desired performance.
must be truly valid and reliable. Without these
One way to achieve good indicators in
conditions, the results of the assessment using
employee performance appraisal is by using
the KPIs are useless. On the other hand, the
the KPIs method (Setiawan & Purba, 2020).
assessment results may be misleading and
Without KPIs, companies must suppose about
make a company resign because the
measuring the performance of their employees.

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information obtained is incorrect (Attia et al., KPIs and classify them based on different
2020). KPIs themselves can be distinguished in perspectives such as publication by region,
many ways. There are KPIs for information publication of industrial sector, publications by
technology, finance and accounting, years, benefits implementing and development
maintenance management, production for performance measurement.
processes, design to PPIC. Some indicators in
measurement cannot be applied just like that. 2. RESEARCH METHODS
Companies must know which one is the
Literature This paper aims to explore more
standard to find out the answers related to
deeply the implementation of Key
meeting the standard qualifications. Moreover,
Performance Indicators in various companies.
the essence of KPIs is an assessment built with
This paper aims to describe the knowledge of
objectivity, not subjectivity, so that the
Key Performance Indicators, considering Key
implementation cannot be done carelessly.
Performance Indicators as an appropriate
Research by Asih et al., (2020) showed that
strategy in measuring an organization, system,
KPIs can be implemented in many of industrial
process and product standardization.
sector or other, as shown to improve the
satisfaction, better service, and others.
The methodology used is a systematic
literature review to identify, explore and
Knowledge of the expected standards must
classify several research results on Key
also be in accordance with the company's
Performance Indicators. This study paper
vision and mission. Therefore, the
begins with the submission of various papers
development of KPIs must be based on good
between 2015 and 2020. The keyword in the
knowledge for the company. Without this
search for the paper used is "Key
basis, the developed KPIs will not provide
Performance Indicators". In making this
good feedback for the company. The
paper specific, clear and directed, it is
implementation of KPIs must be maximal. An
necessary to carry out the following stages:
honest answer is needed so that the assessment
can be used to improve for a better company.
The first stage is to determine the study's topic,
The implementation of KPIs in the automotive
namely implementing key performance
industry can provide an overview of the
indicators in Europe. The second stage is to
productivity quality of each criterion (Paduloh
collect papers according to relevant topics in
and Purba, 2020). Without honesty in the
various well-known databases such as Google
assessment, the process is useless, one of
Scholar, ScienceDirect and Research Gate.
which aims to improve the company.
The third step is to filter and map several
articles and get articles according to highly
With a good assessment and good overall
relevant theme topics. Then summarize all
implementation, the company can develop
relevant articles based on paper identity,
better. Employees can produce a better quality
industrial sector and results. In the fourth
performance if the assessment results are used
stage, all articles are grouped such as
to improve the quality provided. Thus, the
publication by sector industry, publication by
company does not need to lose employees,
year and publication by region. The final step
which can hurt the company continuously. In
is to find research gaps and opportunities for
general, the KPIs main goals/goals are as
implementing Key Performance Indicators for
follows (Meyer, 2006): 1) As a benchmark
future research. For more details on the
(measure, monitor a company's performance)
literature review steps in this paper, can be
periodically. 2) Management tools to control
seen Fig. 1.
and evaluate all team members in achieving
daily/weekly/monthly/annual goals. In its
implementation, KPIs requires a very
measurable and systematic stage, namely
SMART (Specific, Measurable, Achievable,
Relevant, Timely). This paper aims to identify

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Collect papers Screening based on

publication year 2015 - Screening by title and
implementation KPIs from
2020 abstract
Database
n = 85 n = 45
n = 132

Screening based on
Analysis research GAP Classifications to several publication area
and future research aspect (Europe)
n = 22

Fig. 1. Study of literature framework

3. RESULT AND DISCUSSION in the European region and are classified based
on paper identity, industrial sector and results.
This paper describe 22 articles related to the This summary can be seen in Table 1
implementation of Key Performace Indicators

Table 1. An existing literature review of key performance indicators

No Paper Identity Sector Findings
1 Sabia et al. (2020) Waste treatment The margins for energy savings higher than 60%.
KPI plays a role in making decisions related to the
2 Feiz et al. (2020) Waste treatment development of biogas solutions from food waste in
the future.
Forty-four key performance indicators were
3 Attia et al. (2020) Student housing identified; the tool provides a novel approach to
assess student housing.
Proportion of water passing through the largest four
Walker et al.
4 Waste treatment treatment works exhibited a significant negative
(2020)
effect on economic efficiency.
KPIs implemented in the dynamic simulation
Bhadani et al.
5 Manufacturing platform can be used to explore and optimize a
(2020)
crushing plant's design and operations
These parameters were inversely related to nitrogen
González-Camejo
6 Waste treatment recovery rates and biomass productivity and could
et al. (2020)
help prevent possible culture deterioration.
KPIs concept to a manufacturing process in the
Wohlers et al.
7 Manufacturing mechatronic system domain and an operation
(2020)
process in the food production domain
Siedler et al. Improvement KPIs digital technologies by inserted a
8 Manufacturing
(2020) simulation model
Several large industrial organizations have launched
Big Data programs to address the complexity of
9 Brint et al. (2020) Manufacturing
supply chains and the requirements for measuring
performance
e-KPI can support manufacturing system designers
Assad et al.
10 Manufacturing in making decisions in component selection and
(2019)
process design

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No Paper Identity Sector Findings

A total of 9,276 ED patient records were used for
McCabe et al.
11 Hospital data abstraction to validate the Cohen kappa median
(2019)
between 0.56 to 0.81 internally.
Energy consumption coincided with the optimal
Scheepmaker et
12 Transportation energy-efficient train control strategy, or it has an
al. (2020)
energy efficiency close to the optimal
Andersson & The study outlines a preliminary model for
13 Manufacturing
Thollander (2019) evaluating the best practice levels of energy KPIs
The result can identify KPIs deviations based on
Cherni et al.
14 Business process quality, cost, time and flexibility, and resolve them
(2019)
by automatically applying redesign patterns
The KPIs specified in the ISO 22400 standard are
Varisco et al.
15 Manufacturing suitable for direct application in performance
(2018)
measurement systems.
A concept for considering operational and design
Wiktorsson et al.
16 Manufacturing KPIs in early development phases of the
(2018)
manufacturing system lifecycle
Zhang et al. The proposed method can detect errors better than
17 Manufacturing
(2017) the previous method
Elhuni & Ahmad There are 3 out of 14 factor indicators proposed as
18 Oil and gas
(2017) KPIs for evaluating sustainable production
Dumitrache et al. Increasing average daily trips and increasing
19 Transportation
(2016) transport capacity
Schmidt et al. Availability of renewable energy to save costs and
20 Manufacturing
(2016) reduce emissions
KPIs are used as support for managerial decisions
21 Popa (2015) Research
and learning and development
The proposed method can be extended to non-
Chioua et al.
22 Manufacturing oscillating data by weighing each frequency bin with
(2015)
spectral PCA for KPIs

Paper Clusterization industrial sectors in the European region to

Based on clustering, article collected from assess the company's operational
publications from 2015-2020 (Fig. 2) and the implementation based on its vision and
most dominant articles implemented in the mission so that organizational improvements
manufacturing industry (Fig. 3). KPIs are new can be seen and improve the quality of
indicators/benchmarks of success in measuring decision making.
performance. KPIs' success in various

Fig. 2. Publication by year

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Fig. 3. Publication by sector industry

KPIs provide several benefits to the company. industry, producing 3 out of 14-factor
When applied in waste treatment, KPIs play a indicators are proposed as KPIs to evaluate
role in making decisions regarding the sustainable production (Elhuni & Ahmad,
development of biogas solutions from food 2017). In the business process (Cherni et al.,
waste in the future (Feiz et al., 2020). In 2019), the results can identify KPI deviations
Manufacturing, e-KPI can support based on quality, cost, time and flexibility, and
manufacturing system designers in making overcome them by automatically implementing
decisions in component selection and process a redesigned pattern. Meanwhile, research by
design (Assad et al., 2019). In transportation (Popa, 2015) produces KPIs to support
services, KPIs can increase average daily trips managerial decisions and learning and
and increase transportation capacity development.
(Dumitrache et al., 2016). In the oil and gas

4 articles

1 article

1 article
6 articles
2 articles
3 articles
1 article

1 article

2 articles
1 article

Fig. 4. Publication by region

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This paper classifies KPI implementation 2) Employees have the motivation to work
publications in various industrial sectors based more optimally to achieve company targets. 3)
on countries in the European region (Figure 4). The more measurable performance results can
This paper identify, Germany is the supplier of be used as a reference to reward employees
the most significant number of publications with better performance. In addition,
with six articles followed by Sweden with four employees can be punished if their
articles, Italy with three articles, Romania and performance is not good. 4) KPI can provide a
the United Kingdom with two articles each and reference for a company to achieve its goals
Portugal, Netherlands, Ireland, Spain, Belgium because there are good guidelines for every
each one article. employee and company.

KPIs implementation success factors Implementation of KPIs in HSE for future

There are several important factors for KPIs to research
be implemented successfully. The explanation Currently, European companies are
of a successful KPIs implementation is if all aggressively reducing the rate of occupational
performance can be evaluated thoroughly accidents and occupational diseases. For this
according to the parameters of the company's reason, this paper briefly reviews the role of
vision and strategy. The performance results KPIs as the main indicator in reducing the
must be followed up on an ongoing basis to number of occupational accidents and diseases.
improve employee capabilities. The first factor KPIs in Safety health and environment consists
for the successful implementation of KPIs is of three core parts: the safety element, the
the application of a reward and punishment health element, and the environmental element.
system to employees based on the acquisition The three are related to each other and have a
of KPIs. Employees are motivated to work role that must be considered in its success.
smarter because they feel valued by the This aspect is in the form of knowledge and
company. Another factor that is no less application of accidents and diseases that occur
important is the presence of top management as a result of an employee's work at a company
among its employees. This attendance factor is and the company's impact on the surrounding
very important so that leaders can recognize environment.
the needs and challenges experienced by their
employees. Examples of KPIs for safety, health and
environment, especially in health and safety,
Based on the success factors for implementing usually include the following: 1) The number
KPIs, it is necessary to have control from the of fatal events for every 100,000 hours
company. Controlling KPIs in accordance with worked. 2) Number of health checks in one
the five basic SMART principles (specific, month. 3) An increasing number of problems
measurable, achievable, relevant, time) will be in the areas of safety, health and environment.
able to bring the company to the level of 4) Number of training hours spent on safety
success. Performance indicators must be and health training each month. Meanwhile,
prepared specifically and in detail. KPIs have the example of KPIs for safety health and
properties that must be measured objectively environment, especially for the environment
and on target. This will make it easier to sector, usually includes the following: 1) The
monitor its implementation amount of energy stored because of the energy
conservation and efficiency efforts that are
KPIs have a big impact on the company if they carried out 2) The average amount of
are implemented with a good structure and electricity consumption for each employee
systematic. The following are some of the used for work and its products. 3) The amount
positive impacts that companies get when of water used by employees for each month. 4)
implementing KPIs. 1) It is easier for The amount of green house gas (GHG) emitted
companies to measure or evaluate employee by employees every month. 5) Number of
performance, and can reduce the element of paper pages used by employees for each
subjectivity because employee performance month.
appraisals are measured more objectively.

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The relationship between KPIs and testing, now in line with Industry 4.0, it has
Industry 4.0 changed to using a monitoring dashboard. So
In this era, it has entered the modern era. An that the implementation becomes easy, so it
era where all work is based on technology. In makes it easier to evaluate and decisions
today's industry 4.0 has an important role. All making.
work activities will be easy and assisted by the
presence of industry 4.0. Developing industries Various main indicators are collected into one.
4.0 such as IoT, cloud computing, realtime, AI This unit is transformed into big data
and others. In a company, in measuring accumulated in realtime into reports, weekly,
performance with KPIs, it can be linked to monthly, and annually. With this, companies in
industry 4.0 (Fig. 5). If the company originally Europe have the opportunity to implement
used sheet manualization in performance KPIs based on Industry 4.0.

Fig. 5. Development KPIs for future

4. CONCLUSION
There are three main focuses of KPIs as a sustainable production and learning and
management system: focus on performance growth. Future research can apply KPIs in
measurement, vision and mission and decision other contexts apart from measuring the
making. The literature review in this paper performance of human resources, production
shows that the study of KPIs in European processes, finance, information technology
countries focuses on improving organizational such as performance measurement in Health
performance, assisting in decision making, Safety & Environment.
assisting in component selection, evaluating

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