Key Performance Indicator Repository

Business Process Methodology

Enterprise Management

The Solution Maps do not contain operational performance indicators for Enterprise Management Processes, so the performance indicators focus upon cost, profitability and capital structure.
Measures regarding cost aspects can only be found on this sheet if they are of general matter and not directly linked to one of the other operational processes.
If for a given client operational metrics are important for the Enterprise Management process (e.g. Time to Market) please turn to the relevant process sheet.

Attribute Performance Indicator Definition

Capital Structure Accounts Payable Turnover Ratio This ratio indicates the number of times the Accounts Payable "turned over" - that is, were paid - in a
period. Period Purchases/Accounts Payable, Ending Balance
Capital Structure Asset Coverage Ratio The Total Assets divided by the amount of Long Term Debt indicates the safety of the lender's capital.
The higher the ratio, the greater the security. Total Assets/[Long Term Debt + Total Equity] * 100

Capital Structure Average Collection Period The Average Collection Period is the average number of days between the day the invoice is sent out
and the day the customer pays the bill. Note: Average Daily Credit Sales equals Sales/365. This
computation indicates the company's efficiency in enforcing its credit policy. Average Receivables/Sales
* 365
Capital Structure Average payment period for materials Average payment period for materials specifies the payment period in which a company is pays its
suppliers for production material. Average production materials related accounts payable per year /
Material receipts per year * 365
Capital Structure Average Receivables The Average Receivables is the sum of the beginning and the closing balance for a period divided by
two. [Beginning Receivables + End Of Period Receivables]/2
Capital Structure Average Working Capital Average Working Capital is computed by adding the Working Capital values at the beginning and the end
of an accounting period and dividing by two. [Beginning Working Capital + End Working Capital]/2

Capital Structure Borrowed Capital To Equity Ratio This ratio compares the Borrowed Capital to all owner's Equity - Common Stock, Preferred Stock,
Retained Earnings, etc. Borrowed Capital/Equity
Capital Structure Capital Capital is the difference between the value of a company's Assets and the total of its Liabilities. Capital
represents the ownership interest of investors. It is also known as Net Worth or Equity. In a corporation,
capital represents the Stockholders' Equity. Total Assets - Total Liabilities
Capital Structure Capital Employed Ratio The Capital/Stockholders' Equity has to be adjusted by deducting the value of assets that do not
contribute to Operating Income, such as marketable securities or other forms of investment. The ratio of
Sales divided by the Capital Employed reflects how well capital (adjusted to exclude noncurrent Assets)
is used to produce revenue (sales). A high rate of Capital Employed usually means that capital is being
used efficiently. Sales/[Capital - Noncurrent Assets] * 100
Capital Structure Capital Stock Capital Stock equity shares in a corporation authorized by its articles of incorporation and issued to
stockholders. Two basic types of capital stock are Common Stock and Preferred Stock
Capital Structure Capital To Total Liabilities Ratio The ratio of Capital divided by Total Liabilities tells creditors how well an organization is able to contract
and meet its debt obligations. The higher this percentage, the better the company's ability to meet its
obligations. Capital/Total Liabilities * 100
Capital Structure Cash Turnover The cash turnover ratio relates Sales to a company's cash balance. The ratio shows the effectiveness of
an organization's use of its cash position to generate revenue. Sales/Cash
Capital Structure Common Stock Share in a public company or privately held firm. Common stockholders have voting and dividend rights.
In the event of corporate bankruptcy, common stockholders are paid after bondholders and preferred
stockholders. The issuing company shows common stock at its total par value, or no-par value, or stated
value in the capital stock section of stockholders' equity
Capital Structure Common Stock Leverage This type of leverage is computed by dividing Capital by the value of Common Stock. A low leverage
stock offers return advantages because interest and preferred dividend claims are so low that most of the
earnings are available for Common Stock Dividends. Capital/Common Stock
Capital Structure Current Assets Total Current Assets is the total amount of assets that are considered to be convertible into cash within a
relatively short period of time, usually a year. Cash and Equivalents + Receivables + Inventories + Other
Current Assets
Capital Structure Current Assets To Working Capital Ratio Assessing the ratios of Current Assets divided by Working Capital is critical to understanding the source
of an organization's Working Capital. Average figures should be used for Working Capital and Current
Assets. Average Current Assets/Average Working Capital
Capital Structure Current Liabilities To Working Capital Assessing the ratios of Current Liabilities divided by Working Capital is critical to understanding the
Ratio source of an organization's Working Capital. Average figures should be used for Working Capital and
Current Liabilities. Average Current Liabilities/Average Working Capital
Capital Structure Days Sales Outstanding The outstandings of a company expressed in their daily Sales. Average Receivable / [Sales / 365]
Capital Structure Equity Total Equity equals Preferred Stock Equity + Common Stock Equity.
Capital Structure Fixed Assets Net Fixed Assets are the assets of a company that are of a relatively permanent nature and are not
intended for resale, such as property, plants, and equipment. The figure is stated as cost minus
accumulated depreciation and amortization
Capital Structure Fixed Assets To Long Term Debt Ratio The ratio of Fixed Assets divided by Long-Term Debt reflects the general degree of protection for the
bondholders' investment, providing the bondholders have priority claims on the assets. Fixed
Assets/Long Term Debt * 100
Capital Structure Fixed Assets To Stockholders' Equity This ratio indicates the percentage of an organization's Fixed Assets that are financed by Stockholders.
Ratio Fixed Assets/Stockholders' Equity * 100
Capital Structure Fixed Assets To Total Assets Ratio This ratio of Fixed to Total Assets is a guideline in estimating Fixed Assets expenditures given total
assets. It is also a tool in measuring Fixed Asset growth in proportion to Total Assets. Fixed Assets/Total
Assets * 100
Capital Structure Funded Capital Ratio The Funded Capital Ratio is computed by dividing the sum of Long-Term (funded) Debt and
Stockholders' Equity by Fixed Assets. It reflects how much of the borrowed and investors' capital goes
toward the financing of Fixed Assets. [Long Term Debt + Stockholders' Equity]/Fixed Assets * 100

Capital Structure Inventory Stock value of a material held by a company which is part of the company’s current assets. Future
liabilities such as consignments from suppliers should not be included. Inventory is the total value of
inventory as standard cost before any reserves for excess and obsolete. Inventory is also known as
'Stock Value'. Total value of inventory as standard cost
Capital Structure Inventory To Working Capital Ratio This comparison relates the average Inventory value to average Working Capital. This ratio
demonstrates the part of Current Assets that are the least liquid. Inventories that greatly exceed Working
Capital indicate that Current Liabilities exceed liquid Current Assets (cash and cash equivalents). Avg.
Inventory/Avg. Working Capital * 100
Capital Structure Issued Stock Authorized shares that have been issued for cash, services, or other property
Capital Structure Liabilities Amount payable in dollars or future services to be rendered (e.g. warranties payable). Total Current
Liabilities + Total Noncurrent Liabilities

[Link] page 1 of 33
Key Performance Indicator Repository
Business Process Methodology
Enterprise Management

The Solution Maps do not contain operational performance indicators for Enterprise Management Processes, so the performance indicators focus upon cost, profitability and capital structure.
Measures regarding cost aspects can only be found on this sheet if they are of general matter and not directly linked to one of the other operational processes.
If for a given client operational metrics are important for the Enterprise Management process (e.g. Time to Market) please turn to the relevant process sheet.

Attribute Performance Indicator Definition

Capital Structure Liabilities To Capital Ratio The ratio of Liabilities divided by Capital indicates the proportion of capital furnished by short-term
creditors. If the current portion of Long-Term Debt is listed among current liabilities on the balance sheet,
it must be deducted before making this computation. Liabilities/Capital * 100
Capital Structure Liabilities To Equity Ratio The ratio compares Total Liabilities to Equity. A high ratio of Total Liabilites to Equity indicates that the
organization can meet its overall debt obligations only with difficulty. The lower the ratio, the better these
obligations are "covered". Liabilities/Equity * 100
Capital Structure Long Term Debt Long Term Debt represents the amount of borrowings due more than one year from the date of the
balance sheet
Capital Structure Long Term Debt Long Term Debt represents the amount of borrowings due more than one year from the date of the
balance sheet
Capital Structure Net Asset Value Book Value is the value of a stock based only on the issuing corporation's equity. It tells an investor what
the common stock (issued and outstanding) would be worth if the company were to liquidate all its
assets, pay off all its liabilities, and go out of business. This figure gauges the value of the company's
assets per share. It is called "Net" because Liabilities are deducted. Stockholders' Equity/Number of
Common Stock
Capital Structure Noncurrent Assets Noncurrent Assets is the total amount of assets that have a life in excess of one year and more
Capital Structure Preferred Stock Class of capital stock that has preference over common stock in the event of corporate liquidation and in
the distribution of earnings. Except in unusual instances, no voting right exist
Capital Structure Receivables To Sales Ratio The Receivables To Sales Ratio is calculated by dividing the average Receivables by Sales for a given
period. If reflects the average age or level of customer accounts outstanding for the period. The quarterly
Receivables should be compared with the annualized Sales amounts to avoid influences of the market
fluctuation. Average Receivables/Sales * 100
Capital Structure Short Term Debt Short Term Debt represents the amount of borrowings (principal and interest) that must be paid in the
near future (usually within one year).
Capital Structure Stockholders' Equity Stockholders' Equity is the difference between the value of a company's Assets and the total of its
Liabilities. Capital represents the ownership interest of investors. It is also known as Net Worth,
Shareholders' Equity or Owners' Equity. Total Assets - Total Liabilities
Capital Structure Total Assets The sum of Total Current Assets and Total Noncurrent Assets. Total Current Assets + Total Noncurrent
Assets
Capital Structure Total Debt The sum of Long Term Debt and Short Term Debt. Long Term Debt + Short Term Debt
Capital Structure Working Capital Working Capital, sometimes known as Net Working Capital or Net Current Assets, is equal to the
difference between Current Assets and Current Liabilities. The more Working Capital a company has, the
greater is its liquidity. Current Assets - Current Liabilities
Capital Structure Working Capital To Long Term Debt Ratio To compute this ratio, average Working Capital is divided by the average value of Long Term Debt. This
ratio answers the question as to whether an organization can liquidate its Long Term Debt from Working
Capital. If the ratio is greater than 100%, the answer is yes; if less that 100%, no. Working Capital/Long
Term Debt * 100
Capital Structure Working Capital Turnover Working Capital Turnover is a ratio of Sales to average Working Capital. It indicates how well
management is using Working Capital to generate revenues - how many "times" it is turning capital over
into sales revenues. Sales/Working Capital * 100
Cost Break Even Point The Break-Even Point is the Sales level at which the business neither profits nor loses money; Sales and
Total Costs are exactly equal. It is a function of Sales, and Fixed and Variable Costs. This computation is
made to enable the sales manager to know the point at which a product, a product line, or the business
itself becomes profitable. It also can be used to calculate the Sales required to maintain a predetermined
level of Operating Income if a variable changes. Fixed Costs/[1 - Variable Costs/Sales]

Cost Cost Of Capital Rate of return that is necessary to maintain market value (or stock price) of a firm, also called a hurdle
rate, cutoff rate, or minimum required rate of return. The firm's cost of capital is calculated as weighted
average of the costs of debt and cost of equity. (Weight Of Debt * Costs of Debt) + (Weight Of Equity *
Cost of Equity)
Cost Cost Of Debt The Cost Of Debt is the interest charged by a company's lender. Average Interest Rate * Average Debt

Cost Cost Of Direct Labor To Cost of Goods To monitor cost elements, each type of expense may be expressed as a percentage of overall Cost of
Sold Ratio Goods Sold. While the overall ratio of Cost of Goods Sold To Sales may remain in line with the historical
average, an individual cost element may be increasing disproportionately. Direct Labor Costs/Cost of
Goods Sold * 100
Cost Cost Of Equity The rate of return required by a company's common stockholders. Equity funds include both capital stock
(common stock and preferred stock) and retained earnings. Beta Factor is a weight to calculate the risk.
Risk free Investment + (Market Risk Premium * Beta Factor)
Cost Cost of Goods Sold Cost of Goods Sold consists of the expenses that can be directly attributed to the making of the
company's product or the rendering of its service. For manufacturing: Direct Labor Costs + Material
Costs + Factory Overhead
Cost Cost of Goods Sold Per Direct Labor Hour The ratio compares the Cost of Goods Sold to the Direct Labor Hours. Cost of Goods Sold/Direct Labor
Ratio Hours
Cost Cost of Goods Sold Per Unit Sold This ratio compares the total Cost of Goods Sold to Units sold. Cost of Goods Sold/Units Sold
Cost Cost Performance Index (CPI) Budgeted cost of work performed divided by actual cost of work scheduled. Budget cost of work
performed / Actual cost of work scheduled * 100
Cost Current Costs Price of replacing an asset identical to an existing one
Cost Direct Cost To Cost of Goods Sold Ratio To monitor cost elements, each type of expense may be expressed as a percentage of overall Cost of
Goods Sold. While the overall ratio of Cost of Goods Sold To Sales may remain in line with the historical
average, an individual cost element may be increasing disproportionately. Individual Direct Cost/Cost of
Goods Sold * 100
Cost Direct Costs Expenses that can be directly identified with the costing object such as a product and department
Cost Direct Labor Costs Costs for Direct Labor Hours
Cost Direct Labor Costs Costs for Direct Labor Hours.
Cost Direct Labor Hours Hours of work directly involved in making a product

[Link] page 2 of 33
Key Performance Indicator Repository
Business Process Methodology
Enterprise Management

The Solution Maps do not contain operational performance indicators for Enterprise Management Processes, so the performance indicators focus upon cost, profitability and capital structure.
Measures regarding cost aspects can only be found on this sheet if they are of general matter and not directly linked to one of the other operational processes.
If for a given client operational metrics are important for the Enterprise Management process (e.g. Time to Market) please turn to the relevant process sheet.

Attribute Performance Indicator Definition

Cost Expense Per Full-Time Equivalent The Expense Factor is equal to Total Operating Expense (all operating expenses!) divided by total FTEs.
Employee It represents the total organizational expense per employee. All organizations aim to reduce operating
costs so that breakeven points are reduced. Expense factor is as industry-E63driven as Revenue Factor
and therefore comparisons should focus primarily within industry sectors. (Expenses/Headcount
FTE)*100
Cost Fixed Costs Costs that remain constant in total regardless of changes in activity within a relevant range. Costs that do
not vary depending on production or sales levels, such as rent, property tax, insurance, or interest
expense.
Cost Fixed Costs Per Unit Fixed Costs Per Unit equals Total Fixed Costs for the period divided by units produced in the period.
Fixed Costs / Units Produced
Cost General and Administrative Expenses All expenses incurred in connection with performing general and administrative activities. Examples are
executives' salaries and legal expenses. General and Administrative Expenses
Cost Indirect Costs Expenses that can't be directly identified with the costing object (or identified with difficulty) such as a
product and department. Example: Advertising for the company. It is also known as Common Costs

Cost Indirect Expenses Usually, Indirect Expenses consist of General And Administrative (G&A) Costs, Selling Expenses, and
Other Indirect Costs (OIC), which cannot be attributed to the making of a specific product. G&A
Expenses + Selling Expenses + other Indirect Costs
Cost Indirect To CoGS Cost Ratio Overhead expenses are not directly related to the manufacturing of the company product. Note: Direct
Costs + Indirect Costs in an equivalent of Cost of Goods Sold. Comparing Indirect with Direct costs is
one way of monitoring the outflow of funds because of rising overhead. Indirect Costs/CoGS * 100

Cost Individual To Total Overhead Ratio Any of the Individual Overhead can be expressed as a ratio of Total Overhead Expense. Individual
Overhead Expense ratios enable the cost manager to arrive at historically validated guideline ratios and
to compare actual ratios against then. In the absence of guidelines, the cost manager can monitor
changes in expense levels from one period to the next. Individual Overhead /Total Overhead * 100

Cost Interest Expense The Interest Expense is the current period cost of borrowing funds that is known as a financial expense
in the Income Statement. It is equal to the Average Debt times the Corporate Average Borrowing Rate.
Average Debt * Corporate Average Borrowing Rate
Cost Interest Paid To Borrowed Capital Ratio This ratio compares the Interest Paid to the amount of Borrowed Capital. Note: Equity excludes borrowed
capital. On the balance sheet it would be the sum of Preferred Stock, Common Stock, and Retained
Earnings. Interest Paid/Borrowed Capital * 100
Cost Material And Other Direct Costs To Cost To monitor cost elements, each type of expense may be expressed as a percentage of overall Cost of
of Goods Sold Ratio Goods Sold. While the overall ratio of Cost of Goods Sold To Sales may remain in line with the historical
average, an individual cost element may increase disproportionately. Material And Other Direct
Costs/Cost of Goods Sold * 100
Cost Nonoperating Expenses Nonoperating Expenses is the combination of "Other Taxes" and "Interest Expense." "Other Taxes," also
known as other operating expenses, for most companies includes taxes other than income taxes (except
excise taxes, which the company does not actually pay, but only collects on behalf of the government).
For financial companies, all expenses other than interest expense and income taxes are included in
Other Taxes. "Interest Expense" is all fixed interest expenses net of capitalized interest. This category
also includes dividends on preferred stock of unconsolidated subsidiaries

Cost Operating Expenses The day-to-day expenses incurred in running a business, such as sales and administration, as opposed
to production
Cost Overhead Total of all costs of manufacturing except direct materials and direct labor. It includes such items as
depreciation, fringe benefits, payroll taxes and insurance
Cost Overhead as % of Total Costs Total of all costs of manufacturing except direct materials and direct labor. It includes such items as
depreciation, fringe benefits, payroll taxes and insurance. (Overhead costs / Total costs) * 100%

Cost Overhead To Cost of Goods Sold Ratio To monitor cost elements, each type of expense may be expressed as a percentage of overall Cost of
Goods Sold. While the overall ratio of Cost of Goods Sold To Sales may remain in line with the historical
average, an individual cost element may increase disproportionately. Overhead/Cost of Goods Sold *
100
Cost Overhead To Direct Labor Hours Ratio This ratio compares the Total Overhead Cost to Direct Labor Hours. With a historically validated ratio, the
cost manager can determine whether overhead is increasing or merely keeping pace with direct labor
hours, estimate product costs per direct labor hour, and develop a factory overhead budget.
Overhead/Direct Labor Hours
Cost Overhead To Prime Cost Ratio This ratio compares Overhead with the sum of Direct Labor plus Material and Other Direct Costs. If this
ratio can be validated as accurate, it can serve as a guideline in planning and as a tool in checking actual
figures, once on hand. Overhead/(Direct Labor Costs + Direct Materials & Other Direct Costs)

Cost Overhead To Sales Ratio The Overhead-To-Sales-Ratio is equal to the Overhead divided by Sales. This ratio can be used to
check the feasibility of sales projections and to estimate costs for upcoming periods. Overhead/Sales *
100
Cost Total Costs All cost (direct and indirect) in the company during a period. Direct Costs + Indirect Costs
Cost Variable Costs A unit cost which depends on total volume
Cost Weight Of Debt This measure is obtained by dividing the cumulated value of debt by the cumulated value of debt plus
value of equity for the entire sector. Debt/[Debt + Equity]
Cost Weight Of Equity This measures is obtained by dividing equity by the cumulated value of debt plus value of equity for the
entire sector. Equity/[Equity + Debt]
Cost Weighted Average Cost Of Capital The sum of the implied or required market returns of each component of a corporate capitalization,
weighted by that component's share of the total capitalization. WACC = WACC Equity + WACC Debt;
WACC Equity = Cost of Equity * (1- Gearing); Gearing = Debt / (Market Cap. + Debt); WACC Debt = Cost
of Debt * Gearing; Cost of Equity = Risk free Investment + Company Risk Premium; Company Risk
Premium = Market Risk Premium * Beta Factor; Cost of Debt = Interest rate * (1 - tax rate)

[Link] page 3 of 33
Key Performance Indicator Repository
Business Process Methodology
Enterprise Management

The Solution Maps do not contain operational performance indicators for Enterprise Management Processes, so the performance indicators focus upon cost, profitability and capital structure.
Measures regarding cost aspects can only be found on this sheet if they are of general matter and not directly linked to one of the other operational processes.
If for a given client operational metrics are important for the Enterprise Management process (e.g. Time to Market) please turn to the relevant process sheet.

Attribute Performance Indicator Definition

Cost Weighted Average Cost Of Capital The sum of the implied or required market returns of each component of a corporate capitalization,
weighted by that component's share of the total capitalization. WACC = WACC Equity + WACC Debt;
WACC Equity = Cost of Equity * (1- Gearing); Gearing = Debt / (Market Cap. + Debt); WACC Debt = Cost
of Debt * Gearing; Cost of Equity = Risk free Investment + Company Risk Premium; Company Risk
Premium = Market Risk Premium * Beta Factor; Cost of Debt = Interest rate * (1 - tax rate)

Profitability Acid Test Ratio This ratio compares the company's Current Liabilities with its Quick Assets - Cash, Marketable
Securities, and Accounts Receivable. These assets are considered "quick" because they either are cash
or can be converted to cash quickly. The Acid Test determines how well a corporation can meet its
current obligations immediately - within days. [Quick Assets/Current Liabilities] * 100
Profitability Annual Sales To Inventory Ratio By comparing Inventory to Sales, this ratio indicates whether there is too little or too much inventory to
support the given level of sales. The objective is to have the smallest level of inventory while still meeting
sales requirements efficiently. Note: Cost of Goods Sold is generally used for this estimate (see:
Inventory Turnover), but Sales may substitute for it. The Sales-To-Inventory-Ratio has to be annualized,
because Sales accumulate over the year and Inventory balances remain more or less constant from
quarter to quarter. Sales/Average Inventory

Profitability Cash as a % of Sales This ratio is equal to Cash divided by Sales. It may be used, if proven valid over time, to assist in
projecting cash positions in upcoming periods. Cash / Sales * 100
Profitability Cash Flow Cash Flow is the net amount when Disbursements are deducted from Cash Receipts from a given
operation or asset in a given period. In investments, it represents earnings before depreciation,
amortization and non-cash charges. Sometimes called cash earnings. Earnings Before Depreciation,
Amortization, And Non Cash Charges
Profitability Cash Flow per FTE The Cash Flow per FTE is equal to Cash Flow divided by Headcount Fulltime Equivalent Employees. It
provides the dollar income per employee and is a macro measure of employee productivity. Cash Flow
per FTE is used as a basic financial indicator and is useful to determine and set company growth targets.
Cash Flow / Headcount FTE
Profitability Cash Flow Return On Investment Cash Flow Return On Investment compares the cash flow of a firm to its owners with the total assets
employed to generate those flows. CFROI is calculated in two steps. First, it measures the inflation-
adjusted cash flows available to all capital owners in the firm and compares them with the inflation-
adjusted gross investment made by the capital owners. Then the ratio of gross cash flow to gross
investment is translated into an internal rate of return by recognizing the finite economic life of
depreciating assets and the residual value of nondepreciating assets such as land and working capital.
Gross Cash Flow/Gross Investment

Profitability Cash Ratio The ratio compares the company's Cash and Marketable Securities with its Current Liabilities. The cash
ratio includes even fewer assets that the acid test; it leaves out Accounts Receivable. The Cash Ratio
determines how well a corporation can meet its current obligations immediately. [Cash + Marketable
Securities]/Current Liabilities * 100
Profitability Cash to Cash Cycle Time The Cash To Cash Cycle Time represents the time from which your company spends a dollar on
purchased material to when it realizes a dollar received in revenue and has a direct impact on your
company’s cash flow. Effective Supply Chain Planning reduces the inventory conversion period by
manufacturing, processing and selling goods more quickly. This in turn reduces the Cash-to-Cash cycle.
Inventory days of supply + Days sales outstanding - Average payment period for materials
Profitability Current Liabilities Total Current Liabilities is the total amount of liabilities that are considered to be due within a relatively
short period of time, usually a year. Accounts Payable + Short-Term Debt + Other Current Liabilities

Profitability Current Ratio The Current Ratio compares Current Assets to Current Liabilities. It indicates the number of times
Current Assets will pay off Current Liabilities. Current Assets/Current Liabilities
Profitability Earnings Before Depreciation, Interest, This measure of cash flow is equal to pretax income and interest expense and depreciation. Sales -
And Tax COGS - Operating Costs [excluding Depreciation]
Profitability Earnings Before Interest And Taxes A measure of a company's earning power from ongoing operations, equal to earnings before deduction
of interest payments and income taxes. It is also called Operating Profit or Operating Income. Sales -
COGS - Operating Costs - other gains & losses
Profitability Earnings Before Interest Tax Depreciation Estimated by adding depreciation and amortization back to operating income (EBIT). Sales - COGS -
Amortization Operating Costs [excluding Depreciation & Amortization]
Profitability Earnings Before Taxes A measure of a company's earning power from ongoing operations, equal to earnings before deduction
income taxes. Sales - COGS - Operating Costs - other gains & losses - Interest
Profitability Economic Profit - Value Spread The Economic Profit EP is a periodic measure based on the principles of shareholder value and basically
the same as Economic Value Added EVA(TM) from Stewart. EP shows if a company is creating value for
the shareholder or not. Only if the EP is positive then the company creates "added value". If there is
"added value" then a shareholder gets better conditions compared profitability to risk than investing his
money in a comparable risk free investment. In the Value Spread form, the Economic Profit can be easily
calculated as follows: NOPAT (=Net Operating Profit After Taxes) is divided by Capital. Then the Cost of
Capital is deducted. Finally, the result is multiplied with Capital. Capital * [[NOPAT/Capital] - Cost Of
Capital]

Profitability Economic Value Added - Capital Charge The Economic Value Added (TM) from Stewart is a periodic measure based on the principles of
shareholder value. EVA (TM) shows if a company is creating value for the shareholder or not. Only if the
EVA (TM) is positive then the company creates "added value". If there is "added value" then a
shareholder gets better conditions compared profitability to risk than investing his money in a comparable
risk free investment. In the Capital Charge form, EVA (TM) can be easily calculated as follows: NOPAT
(=Net Operating Profit After Taxes) minus Weighted Average Cost of Capital multiplied with Capital.
NOPAT - [WACC * Capital]

Profitability Economic Value Added - Value Spread The Economic Value Added (TM) from Stewart is a periodic measure based on the principles of
shareholder value. EVA (TM) shows if a company is creating value for the shareholder or not. Only if the
EVA (TM) is positive then the company creates "added value". If there is "added value" then a
shareholder gets better conditions compared profitability to risk than investing his money in a comparable
risk free investment. In the Value Spread form, EVA (TM) can be easily calculated as follows: NOPAT
(=Net Operating Profit After Taxes) is divided by Capital. Then the Cost of Capital is deducted. Finally,
the result is multiplied with Capital. Capital * [[NOPAT/Capital] - Cost Of Capital]

[Link] page 4 of 33
Key Performance Indicator Repository
Business Process Methodology
Enterprise Management

The Solution Maps do not contain operational performance indicators for Enterprise Management Processes, so the performance indicators focus upon cost, profitability and capital structure.
Measures regarding cost aspects can only be found on this sheet if they are of general matter and not directly linked to one of the other operational processes.
If for a given client operational metrics are important for the Enterprise Management process (e.g. Time to Market) please turn to the relevant process sheet.

Attribute Performance Indicator Definition

Profitability Free Cash Flow The Free Cash Flow is equal to the remaining Net Operating Profit After Taxes (NOPAT) after necessary
investments have been deducted. It represents the cash earnings a company would generate if its
capitalization were unleveraged. NOPAT - Necessary Investments
Profitability Gross Profit Gross Profit is equal to Sales less the Cost of Goods Sold. It is also known as Gross Margin. It identifies
the amount available to cover other operating expenses. Sales - Cost of Goods Sold
Profitability Gross Profit to Sales Ratio The ratio of Gross Profit divided by Sales assists the sales manager in monitoring the Cost of Goods
Sold from one period to the next. It also helps projecting the Cost of Goods Sold, given a Sales estimate.
Gross Profit/Sales * 100
Profitability Internal Rate Of Return The Internal Rate of Return is the discount rate at which net present value (NPV) investment is zero. It
would make the present value of future cash flows plus the final market value of an investment or
business opportunity equal the current market price of the investment or opportunity. To calculate the
IRR a interpolation has to be done, if time [t] is greater than 2 years. 0 = -[Net Present Value] + Sum
[ Cash Flow[t] / [[1+IRR]^t] ]
Profitability Investment Turnover Return earned on capital invested in a business. A higher ratio indicates good use of the funds placed
into the business. Sales / [Stockholders' Equity + Long Term Liabilities] * 100
Profitability Market Value Added The Market Value Added is equal to the present value of all future EVA. Sum = Sum over all i periods,
EVA(i) = EVA in the ith period, n(i) interest rate from now to the ith period, 1/n(i) = discount factor for the
ith period. Sum [[EVA[i]] * [1/n[i]]]
Profitability Net Income Net Income is the amount left after adding income from other (nonoperational) sources and deducting all
expenses and taxes from Sales. It is also known as Net Income. Net Income is the income after
accounting for all corporate actions: Income from Continuing Operations + Income from Discontinued
Operations + Income from Extraordinary Items + Income from Accumulative Effect of Accounting
Changes + Income from Tax Loss Carryforward + Income from Other Gains/Losses. Revenue - [All
Expenses + Tax]

Profitability Net Income Before Taxes Net Income Before Taxes is the profit left after deducting all expenses from operating and nonoperating
income, but before providing for taxes. To obtain this value add other miscellaneous income (such as
sales discounts, gain on sale of fixed assets, interest income, etc. and reduce this amount by other
deductions (such as interest expense, project abandonment, deferred development, and loss on the sale
of fixed assets). It is also known as Pretax Profit. [Operating Income + Nonoperating Income] - All
expenses, including interest expense

Profitability Net Income Before Taxes To Sales Ratio This ratio is an organization's Net Income Before Taxes divided by Sales. Net Income Before Taxes /
Sales * 100
Profitability Net Income To Capital Ratio This ratio is derived by dividing Net Income (from the Income Statement) by Stockholders' Equity (from
the Balance Sheet). Net Income/Stockholders' Equity * 100
Profitability Net Income To Capital Ratio (Preferred This ratio is derived by dividing Net Income by Stockholders' Equity. If a corporation has issued preferred
Stock) stock, then the Dividends must be deducted from Net Income and the Par Value subtracted from Capital
(or Net Worth). [Net Income - Preferred Dividends]/[Stockholders' Equity - Preferred Stock Par Value] *
100
Profitability Net Income To Equity Ratio This ratio compares Net Income to Equity. Note: Equity excludes borrowed capital. On the balance sheet
it would be the sum of Preferred Stock, Common Stock, and Retained Earnings. Net Income/Equity * 100

Profitability Net Operating Profit Less Adjusted Taxes The Net Operating Profit After Tax is equal to Sales minus Operating Expenses and Taxes (NOPAT).
Sales - Operating Expenses - Operating Taxes
Profitability Nonoperating Income Income, which is not operational income, e.g. interest (if the company is not a bank).
Profitability Operating Cash Flow The expected or certain value of a future cash flow discounted to the present at an appropriate interest
(discount) rate. It is equal to the earnings before depreciation minus taxes. This ratio measures the cash
generated from operations, not counting capital spending or working capital requirements. Sum = Sum
over all i periods, Cash Flow(i) = Cash Flow in the ith period, n(i) interest rate from now to the ith period,
1/n(i) = discount factor for the ith period. Sum[ [Cash Flow[i]] * [1/n[i]]]

Profitability Operating Cash Flow Demand The Operating Cash Flow Demand equals earnings before depreciation minus taxes. It measures the
cash generated from operations, not counting capital spending or working capital requirements. Earnings
Before Depreciation - Taxes
Profitability Operating Income The Operating Income , or Operating Income, is equal to Sales less all related expenses applying to the
normal business activities (Cost of Goods Sold, General and Administrative Expenses, Selling
Expenses). Sales - [Cost of Goods Sold + G&A Expenses + Selling Expenses]
Profitability Operating Leverage Ratio The Operating Leverage Ratio assesses the effect of fluctuating Sales on Operating Profits. It is the
leverage a company gains from Sales, it says that Operating Income changes "so many times" the
percentage change of Sales. The factor is inversely proportional to Operating Income and changes with
fluctuations in Sales and in Expenses. Note: Income risk is distinguished from financial risk, which is
posed by the heavy use of debt support by creditors. [Sales - Variable Costs]/Operating Income * 100

Profitability Operating Revenue Margin Operating Revenue minus Operating Expenses divided by Operating Revenue. This ratio assists the
manager in monitoring operations from period to period. Moreover, it is a good indicator of an
organization's ability to make a profit. Period-to-period fluctuations can trigger investigations into the
possibility of rising costs or decreased Sales. Operating Revenue equals Net Sales plus other regular
income sources related to the normal business operations of the entity (e.g., lease income if a major
activity). (Revenue-Operating Expenses) / Revenue * 100

Profitability Present Value The current value of a future cash flow or series of cash flows discounted at an appropriate interest rate
or rates. Discounted Future Cash Flows
Profitability Profit Per Full-Time Equivalent Employee This is Revenue minus Expense, divided by total FTEs. The Profit Factor represents an average pre-tax
profit per employee which is another way of viewing employee productivity. It indicates how much profit
an organization makes from an average employee. This measure is largely industry driven and thus
comparisons should be within a specific industry. Net Profit/Headcount FTE
Profitability Profitability Index The present value of the future cash flows divided by the initial investment. Also called the benefit-cost
ratio. Discounted Value Of The Future Cash Flows/Initial Investment
Profitability Rate Of Operating Return On Capital This rate is determined by multiplying the Capital-Employed-Ratio by Operating Income To Sales Ratio.
Operating Income / [Capital - Noncurrent Assets] * 100
Profitability Rate Of Return On Capital This rate is determined by multiplying the Capital-Employed-Ratio by Profitability. Net Income / [Capital -
Noncurrent Assets] * 100

[Link] page 5 of 33
Key Performance Indicator Repository
Business Process Methodology
Enterprise Management

The Solution Maps do not contain operational performance indicators for Enterprise Management Processes, so the performance indicators focus upon cost, profitability and capital structure.
Measures regarding cost aspects can only be found on this sheet if they are of general matter and not directly linked to one of the other operational processes.
If for a given client operational metrics are important for the Enterprise Management process (e.g. Time to Market) please turn to the relevant process sheet.

Attribute Performance Indicator Definition

Profitability Residual Income The Residual Income is defined as the Income minus Capital Charge (Capital times Weighted Average
Cost of Capital WACC).Income = Operating Profit, EBIT, NOPAT, Net Income. Income - [Capital *
WACC]
Profitability Retained Earnings Accumulated earnings of a corporation since inception less dividends
Profitability Retained Earnings To Capital Ratio The ratio compares the Retained Earnings to Stockholder's Equity. High percentages mean that
management is generating profitability through its efforts, not relying on heavy capitalization. Retained
Earnings/Stockholder's Equity * 100
Profitability Return On Assets (ROA) This ratio is an indicator of profitability. It is determined by dividing NOPAT for the past 12 months by
total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales
(NOPAT/sales) multiplied by asset utilization (sales/assets). NOPAT / Total Assets * 100
Profitability Return On Capital Employed The Return On Capital Employed is probably the most popular ratio for measuring general management
performance in relation to the capital invested. It is calculated as NOPAT (Net Operating Profit After
Taxes) divided by Capital Employed. NOPAT/Capital Employed * 100
Profitability Return On Equity The Return On Equity ratio is an indicator of profitability. it is determined by dividing net income for the
past 12 months by common stockholder equity (adjusted for stock splits). Result is shown as a
percentage. Investors use ROE as a measure of how a company is using its money. ROE may be
decomposed into return on assets (ROA) multiplied by financial leverage (total assets/total equity). Net
Income/Common Stockholder Equity * 100
Profitability Return On Net Assets The Return On Net Assets is a financial measure especially used at the business unit level. It is equal to
NOPAT divided by Net Assets (Total Assets less Current Liabilities). NOPAT / Net Assets * 100

Profitability Return On Operating Assets (ROOA) This ratio is an indicator of profitability. It is determined by dividing Operating Profit for the past 12
months by Operating Assets. Operating Profit / Operating Assets * 100
Profitability Return On Sales The Return On Sales ratio measures the profit after taxes on the year's sales. The higher the ratio the
better prepared the business is to handle downturns. It is also known as Profitability. Net Income/Sales *
100
Profitability Revenue Revenue is an increase in the assets of an organization or decrease in liabilities during an accounting
period, primarily from the organization's operating activities. This may include sales of products,
rendering of services, and earnings from interest, dividends, lease income, and royalties
Profitability Revenue Per Full-Time Equivalent The Revenue Factor is equal to Revenue divided by Total Fulltime Equivalent Employees. It provides the
Employee dollar revenue generated per employee and is a macro measure of employee productivity. Revenue per
employee is used as a basic financial indicator and is useful to determine and set revenue growth
targets. Revenue Factor is only applicable to comparisons within an industry since it varies greatly
between different industry groups, particularly given different levels of capital investment.
Revenue/Headcount FTE

Profitability Value Added Employee Productivity Value added per employee is calculated as total product revenue less total material purchases ÷ total
employment (in full-time equivalents). [Total product revenue - Total material purchases] / Headcount
FTE

[Link] page 6 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

# of call backs as % of total inquiries # of call backs divided by total queries Deliver 3 (Scor) Delivery Reliability
# of Faultless Invoices # of invoices issued without error. Examples of potential Deliver 3 (Scor) Delivery Reliability
invoice defects are: Change from customer purchase
order without proper customer involvement, wrong
customer information (name, address, etc), wrong product
information, wrong price or quantity, wrong terms or date

# of Finished Goods Stock Shortfalls Number of stock shortfalls per year. It makes sense to Deliver Delivery Reliability
measure this for storage locations and/or products.
Number of stock shortfalls per year
# of Orders Not Delivered Complete # of orders for which ot all of the items on order are Deliver 3 (Scor) Delivery Reliability
delivered in tehe quantities requested
# of Orders with Complete and Accurate # of orders without correct documentaion supporting the Deliver 3 (Scor) Delivery Reliability
Documentation order, including packing slips, bills of lading, invoices etc

% of customers sharing forecasts (Consensus Sharing forecast with the most important customer leads Plan Delivery Reliability
Forecasting) to better planning (Consensus Forecasting), therefore not
the number of customer is important, but the sales. Sales
of customer sharing forecast / Sales * 100

% of EDI Transactions %of orders received via electronic data interchange Source 3 (Scor) Flexibility & Responsiveness
% of Faultless Installations # of faultless installations divided by total # of units Deliver 3 (Scor) Delivery Reliability
installed
% of Orders Delivered to Customer Request Date Deliver 3 (Scor) Delivery Reliability
% of suppliers getting shared forecasts (Supplier Sharing forecast with the most important supplier leads to Plan Flexibility & Responsiveness
Collaboration) better planning (Supplier Collaboration), therefor not the
number of supplier is important, but the purchasing value.
Purchasing Value of supplier sharing forecast /
Purchasing Value * 100
% release errors Make 3 (Scor) Delivery Reliability
Actual-to-Theoretical Cycle Time Ratio of the measured time required to produce a given Plan 2 (Scor) Delivery Reliability
output divided y the sum of the time required to produce a
given output based on the rated efficience of the
machiner and labor operations
Actual-to-Theoretical Cycle Time Ratio of the measured time required to produce a given Plan 3 (Scor) Delivery Reliability
output divided y the sum of the time required to produce a
given output based on the rated efficience of the
machiner and labor operations
Actual-to-Theoretical Cycle Time Ratio of the measured time required to produce a given Plan 3 (Scor) Flexibility & Responsiveness
output divided y the sum of the time required to produce a
given output based on the rated efficience of the
machiner and labor operations
Asset turns total gross product revenue / total net assets n.a. 1 (Scor) Assets
Asset Turns total gross product revenue / total net assets Make 2 (Scor) Assets
Asset turns total gross product revenue / total net assets Make 3 (Scor) Cost
Average Inventory The sum of the daily/monthly/quarterly stock value for one Plan Assets
year of the analysis divided by the number of days.
Inventory is also known as 'Stock Value'. Total annual
stock value / Number of days
Average plant-wide salary total payroll for salaried employees divided by total Make 2 (Scor) Cost
headcount
Backlog Order, which has not been delivered yet (net value) Deliver Delivery Reliability
Bill of Material Data Accuracy Indicates the quality of the bill of materials (BOMs) that Make Reliability
are used for the planning process. Only corrections of
errors should be counted. Number of corrections made
per year
Build cycle time build cycle time is the average ycle time for build-to-stock Make 3 (Scor) Flexibility & Responsiveness
products calculated as the average number of units in
process divided by the average daily outputs in units

Build to ship cycle time average time from when a unit/product is deemed Make 3 (Scor) Flexibility & Responsiveness
shippable by manufacturing until the unit/product actually
ships to a customer
Capacity Utilization a measure of how intensively a resource is being used to Make 2 (Scor) Assets
produce a good or service. Some factors that should be
considered are internal manufacturing capacity
constraining processes, direct labor availability and key
components/materials availability
Capacity Utilization a measure of how intensively a resource is being used to Plan 2 (Scor) Assets
produce a good or service. Some factors that should be
considered are internal manufacturing capacity
constraining processes, direct labor availability and key
components/materials availability
Capacity Utilization a measure of how intensively a resource is being used to Deliver 3 (Scor) Assets
produce a good or service. Some factors that should be
considered are internal manufacturing capacity
constraining processes, direct labor availability and key
components/materials availability

[Link] page 7 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Capacity Utilization a measure of how intensively a resource is being used to Make 3 (Scor) Delivery Reliability
produce a good or service. Some factors that should be
considered are internal manufacturing capacity
constraining processes, direct labor availability and key
components/materials availability
Capacity Utilization a measure of how intensively a resource is being used to Make 3 (Scor) Assets
produce a good or service. Some factors that should be
considered are internal manufacturing capacity
constraining processes, direct labor availability and key
components/materials availability
Capacity Utilization a measure of how intensively a resource is being used to Plan 3 (Scor) Assets
produce a good or service. Some factors that should be
considered are internal manufacturing capacity
constraining processes, direct labor availability and key
components/materials availability
Cash-to-cash Cycle Time inventory days of supply + days sales outstanding - n.a. 1 (Scor) Assets
average payment period for materials (time it takes for a
dollar to flow back into a company after it has been spent
for raw materials)
Cash-to-cash Cycle Time inventory days of supply + days sales outstanding - Plan 2 (Scor) Flexibility & Responsiveness
average payment period for materials (time it takes for a
dollar to flow back into a company after it has been spent
for raw materials)
Cash-to-cash Cycle Time inventory days of supply + days sales outstanding - Deliver 3 (Scor) Flexibility & Responsiveness
average payment period for materials (time it takes for a
dollar to flow back into a company after it has been spent
for raw materials)
Cash-to-cash Cycle Time inventory days of supply + days sales outstanding - Make 3 (Scor) Assets
average payment period for materials (time it takes for a
dollar to flow back into a company after it has been spent
for raw materials)
Channel Obsolescence as a % of Inventory Carrying Aging allowances paid to channel partners, provisions for Plan Cost
Costs buy-back agreements. Expressed as a % of Inventory
Carrying Costs. All costs related to channel obsolescence
/ Inventory Carrying Costs * 100
Channel Obsolescence Costs Aging allowances paid to channel partners, provisions for Deliver Cost
buy-back agreements. All costs related to channel
obsolescence
Commodity Management Profile # of distinct parts (purchased commodities) sourced within Plan 2 (Scor) Cost
the following areas: 200 miles, own country, own
continent, and off-shore
Commodity Management Profile # of distinct parts (purchased commodities) sourced within Plan 3 (Scor) Cost
the following areas: 200 miles, own country, own
continent, and off-shore
Complete Manufacture to Order Ready for Shipment includes pick/pack and prepare for shipment time, in Deliver 3 (Scor) Flexibility & Responsiveness
Time calendar days
Contract, Program and Channel Management Costs Includes all costs for activities related to contract Deliver Cost
negotiation, monitoring progress and reporting against the
customer's contract, including administration of
performance or warranty related issues. Activities related
to contract negotiation costs + monitoring progress costs
+ reporting against the customer's contract costs

Cost/unit Make 2 (Scor) Cost

Create Customer Order Costs includes costs for creating and pricing configurations to Deliver 3 (Scor) Cost
order and preparing order documents
Cross training the providing of training or experience in several different Make 3 (Scor) Assets
areas (e.g. training an employee on several machines
rather than one). Cross-training provides backup workers
in case the primary operator is unavailable

Cumulative Make Cycle Time Plan 2 (Scor) Flexibility & Responsiveness

Cumulative Make Cycle Time Plan 3 (Scor) Flexibility & Responsiveness
Cumulative Source Cycle Time Plan 2 (Scor) Flexibility & Responsiveness
Cumulative Source/Make Cycle Time the cumulative external and internal lead-time to build Plan 2 (Scor) Flexibility & Responsiveness
shippable product (if yo start with no inventory on-hand,
no parts on-order, and no prior forecasts existing with
suppliers), in calendar days
Cumulative Source/Make Cycle Time the cumulative external and internal lead-time to build Plan 3 (Scor) Flexibility & Responsiveness
shippable product (if yo start with no inventory on-hand,
no parts on-order, and no prior forecasts existing with
suppliers), in calendar days
Customer Invoicing/Accounting Costs Includes costs for invoicing, processing customer Deliver 3 (Scor) Cost
payments, and verifying customer satisfaction
Customer Receipt of Order to Installation Complete includes product installation, acceptance and procuct up Deliver 3 (Scor) Flexibility & Responsiveness
and running time, in calendar days
Customer Signature/Authorization to Order Receipt time, in calendar days, from when the customer Deliver 3 (Scor) Flexibility & Responsiveness
Time authorizes an order to the time that the order is received

Days of supply/Inventory Carrying Cost Deliver 3 (Scor) Cost

Days Sales Outstanding 5 point annual average of gross accounts receivable / Deliver 3 (Scor) Flexibility & Responsiveness
(total gross annual sales / 365)

[Link] page 8 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Days Sales Outstanding 5 point annual average of gross accounts receivable / Deliver 3 (Scor) Assets
(total gross annual sales / 365)
Deliver to commit date Make 3 (Scor) Flexibility & Responsiveness
Deliver to Customer Request Date Plan 2 (Scor) Delivery Reliability
Deliver to Customer Request Date Plan 3 (Scor) Delivery Reliability
Delivery Performance n.a. 1 (Scor) Delivery Reliability
Delivery Performance to Customer Request Date % of orders that are fulfilled on or before the customer's Deliver 2 (Scor) Delivery Reliability
requested date
Delivery Performance to Customer Request Date % of orders that are fulfilled on or before the customer's Make 2 (Scor) Delivery Reliability
requested date
Delivery Performance to Customer Request Date % of orders that are fulfilled on or before the customer's Plan 2 (Scor) Delivery Reliability
requested date
Delivery Performance to Customer Request Date % of orders that are fulfilled on or before the customer's Deliver 3 (Scor) Delivery Reliability
requested date
Delivery Performance to Customer Request Date % of orders that are fulfilled on or before the customer's Plan 3 (Scor) Delivery Reliability
requested date
Delivery Performance to Scheduled Commit Date % of orders that are fulfilled on or before the original Deliver 2 (Scor) Delivery Reliability
scheduled or committed date
Delivery Performance to Scheduled Commit Date % of orders that are fulfilled on or before the original Make 2 (Scor) Delivery Reliability
scheduled or committed date
Delivery Performance to Scheduled Commit Date % of orders that are fulfilled on or before the original Deliver 3 (Scor) Delivery Reliability
scheduled or committed date
Delivery Performance to Scheduled Commit Date % of orders that are fulfilled on or before the original Make 3 (Scor) Delivery Reliability
scheduled or committed date
Demand/ Supply Planning Costs costs associated with forecasting, developing finished Plan 2 (Scor) Cost
goods or end item inventory plans, and coordinating
Demand/Supply process across entire supply chain,
including all channels. (Not including MIS associated
costs)
Distribution Costs includes costs for warehouse space and management, Deliver 3 (Scor) Cost
finished goods receiving and stocking, processing
shipments, picking and consolidating, selecting carrier,
and staging products/systems
ECO cost costs incurred from revisions to a blueprint or design Make 2 (Scor) Cost
released by engineering to modify or correct a part. The
request for the change can be from a cutomer or from
production qualit control or another department.
ECO cost costs incurred from revisions to a blueprint or design Make 3 (Scor) Cost
released by engineering to modify or correct a part. The
request for the change can be from a cutomer or from
production qualit control or another department.
End-of-Life Inventory inventory on hand which will satisfy future demand for Deliver 3 (Scor) Assets
products that are no longer in production at your entity
Equipment Utilization Number of filled equipment SKU locations divided by the Make 2 (Scor) Assets
total SKU locations provided by the equipment expressed (Enable
as a percentage Process)
Field Finished Goods Inventory DOS the inventory which is kept at locations outside the four Deliver 3 (Scor) Assets
walls of the manufacturing plant, i.e. distribution center,
warehouse
Field Service Parts Obsolescence Field Service Parts reserves taken due to obsolescence Plan Cost
and scrap. Obsolescence inventory + scrap inventory

Fill Rates % fo ship-from-stock orders shipped within 24 hours of n.a. 1 (Scor) Delivery Reliability
receipt
Fill Rates % fo ship-from-stock orders shipped within 24 hours of Deliver 2 (Scor) Delivery Reliability
receipt
Fill Rates % fo ship-from-stock orders shipped within 24 hours of Plan 2 (Scor) Delivery Reliability
receipt
Fill Rates % fo ship-from-stock orders shipped within 24 hours of Deliver 3 (Scor) Delivery Reliability
receipt
Fill Rates % fo ship-from-stock orders shipped within 24 hours of Make 3 (Scor) Delivery Reliability
receipt
Fill Rates % fo ship-from-stock orders shipped within 24 hours of Plan 3 (Scor) Delivery Reliability
receipt
Finished Goods Inventory Carrying Costs sum of all costs associated with finished goods inventory: Plan 2 (Scor) Cost
opportunity cost, shrinkage, insurance and taxes, total
obsolescene, channel obsolescence and field sample

Finished Goods Inventory Carrying Costs sum of all costs associated with finished goods inventory: Plan 3 (Scor) Cost
opportunity cost, shrinkage, insurance and taxes, total
obsolescene, channel obsolescence and field sample

Finished Goods Inventory Days of Supply gross finished goods inventroy / (value of transfers / 365 Deliver 2 (Scor) Assets
days)
Finished Goods Inventory Days of Supply gross finished goods inventroy / (value of transfers / 365 Plan 2 (Scor) Assets
days)
Finished Goods Inventory Days of Supply gross finished goods inventroy / (value of transfers / 365 Deliver 3 (Scor) Assets
days)
Finished Goods Inventory Days of Supply gross finished goods inventroy / (value of transfers / 365 Plan 3 (Scor) Assets
days)

[Link] page 9 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Finished Goods Inventory Turnover Finished goods inventory turnover indicates how many Deliver Assets
times the inventory was consumed and filled up based on
value. Also known as Inventory Turns. Annual total value
of transfers, issues of finished goods / Annual average
value of gross finished goods inventory
Finished Goods Shrinkage costs associated with breakage, pilferage, and Plan 2 (Scor) Cost
deterioration of finished goods inventories
Forecast Accuracy calculated for products and/or families for Plan (Enable 2 (Scor) Delivery Reliability
markets/distribution channels, in unit measurement. Process)
Forecast accuracy = (Forecast sum - Sum of Variance) /
(Forecast Sum) ; where: Forecast sum = Sum of the units
forecasted to be shipped in each month based upon the
forecast generated at the critical time fence. Sum of
Variences = sum of the absolute values, at the forecasted
line item level, of the differences between each month's
forecast as defined above and actural demand for the
same month.

Forecast Accuracy calculated for products and/or families for Plan 2 (Scor) Delivery Reliability
markets/distribution channels, in unit measurement.
Forecast accuracy = (Forecast sum - Sum of Variance) /
(Forecast Sum) ; where: Forecast sum = Sum of the units
forecasted to be shipped in each month based upon the
forecast generated at the critical time fence. Sum of
Variences = sum of the absolute values, at the forecasted
line item level, of the differences between each month's
forecast as defined above and actural demand for the
same month.

Forecast Accuracy calculated for products and/or families for Plan 3 (Scor) Delivery Reliability
markets/distribution channels, in unit measurement.
Forecast accuracy = (Forecast sum - Sum of Variance) /
(Forecast Sum) ; where: Forecast sum = Sum of the units
forecasted to be shipped in each month based upon the
forecast generated at the critical time fence. Sum of
Variences = sum of the absolute values, at the forecasted
line item level, of the differences between each month's
forecast as defined above and actural demand for the
same month.

Forecast Cycle Time time between forecast regenarations that reflect true Plan 3 (Scor) Flexibility & Responsiveness
changes in marketplace demand for shippable end
products. Only true "bottom-up" forecasts are counted: for
example, if weekly or monthly updates to the forecast only
re-calendar or shift dates for the forecast to avoid
chnaging the annual dollar-based forecast, they should
not be considerated true forecast regenerations.

Inbound Freight and Duty Costs Freight costs associated with the movement of material Source Cost
from a vendor to the buyer and the associated
administrative tasks. Duties are those fees and taxes
levied by government for moving purchased material
across international borders. Customs brokers fees
should also be considered in this category. Freight costs
+ duties + customs brokers fees

Incoming Inspection Costs All costs associated with the inspection and testing of Source Cost
received materials to verify compliance with
specifications. ( Inspection + testing costs ) / Material
Acquisition Costs * 100
Incoming Material Quality # of received parts which fail inspection divided b the total Deliver 3 (Scor) Delivery Reliability
# of parts received
Incoming Material Quality Number of received parts which fail inspection divided by Source Delivery Reliability
the total number of parts received. Very similar to Parts
Per Million. Number of received parts which fail inspection
/ Total number of parts received * 100
Indirect to direct labor headcount ratio Ratio of total number of employees required to support Make 2 (Scor) Cost
production in general without being related to a specific
product, indirect labor, to the total number of employees
that is specifically applied to the product being
manufactured or used in the perfomance of the service,
direct labor.

In-process failure rates % of time work-in-process is not completed. 1 minus the Make 3 (Scor) Delivery Reliability
percentage of ompleted work-in-process units
Installation Costs Includes costs for verifying site preparation, installing, Deliver 3 (Scor) Cost
certifying, and authorization billing
Installation Planning Costs Includes costs for installation engineering, scheduling and Deliver Cost
modification, handling cancellations and planning the
installation. Installation engineering costs + scheduling
and modification costs + handling cancellations costs +
planning the installation costs

[Link] page 10 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Insurance and Taxes The cost of insuring inventories and taxes associated with Plan Cost
the holding of inventories. Insurance costs + inventory tax
costs
Intra-manufacturing replan cycle time between the acceptance of a regenerated forecast is Make 3 (Scor) Flexibility & Responsiveness
by the end-product producing location and the reflection
of the revised plan in the master production schedule of
all the affected plants, excluding external vendors.

Inventory Stock value of a material held by a company which is part Plan Assets
of the company’s current assets. Future liabilities such as
consignments from suppliers should not be included.
Inventory is the total value of inventory as standard cost
before any reserves for excess and obsolete. Inventory is
also known as 'Stock Value'. Total value of inventory as
standard cost

Inventory accuracy the absolute value of the sum of the variance between Make 3 (Scor) Delivery Reliability
physical inventory and perpetual inventory
Inventory accuracy the absolute value of the sum of the variance between Plan 3 (Scor) Delivery Reliability
physical inventory and perpetual inventory
Inventory aging % of gross inventory (based on value) covered by Make 2 (Scor) Assets
expected demand within specific time buckets
Inventory Carrying Costs sum of opportunity cost, shrinkage, insurance and taxes, Plan 2 (Scor) Cost
total obsolescence for raw material, WIP, and finished
goods inventory, channel obsolescence and field sample
obsolescence.
Inventory Carrying Costs sum of opportunity cost, shrinkage, insurance and taxes, Make 3 (Scor) Cost
total obsolescence for raw material, WIP, and finished
goods inventory, channel obsolescence and field sample
obsolescence.
Inventory cycle-counting accuracy # of accurate part cycle counts divided by the total Make 2 (Scor) Assets
number of cycle counts performced expressed as a (Enable
percentage Process)
Inventory cycle-counting accuracy the absolute value of the sum of the variance between Plan 3 (Scor) Assets
physical inventro and perpetual inventory
Inventory days of supply total gross value of inventory at standard cost before n.a. 1 (Scor) Assets
reserved for excess and obsolescence. Only includes
inventro on company books, future liabilities should not be
included. Five point annual average of the sum of all
gross inventories; (raw materials & WIP, plant FG, field
FG, field samples, other) / (COGS / 365)

Inventory days of supply total gross value of inventory at standard cost before Plan (Enable 2 (Scor) Cost
reserved for excess and obsolescence. Only includes Process)
inventro on company books, future liabilities should not be
included. Five point annual average of the sum of all
gross inventories; (raw materials & WIP, plant FG, field
FG, field samples, other) / (COGS / 365)

Inventory days of supply total gross value of inventory at standard cost before Plan 2 (Scor) Cost
reserved for excess and obsolescence. Only includes
inventro on company books, future liabilities should not be
included. Five point annual average of the sum of all
gross inventories; (raw materials & WIP, plant FG, field
FG, field samples, other) / (COGS / 365)

Inventory days of supply total gross value of inventory at standard cost before Source 2 (Scor) Assets
reserved for excess and obsolescence. Only includes
inventro on company books, future liabilities should not be
included. Five point annual average of the sum of all
gross inventories; (raw materials & WIP, plant FG, field
FG, field samples, other) / (COGS / 365)

Inventory days of supply total gross value of inventory at standard cost before Plan 3 (Scor) Cost
reserved for excess and obsolescence. Only includes
inventro on company books, future liabilities should not be
included. Five point annual average of the sum of all
gross inventories; (raw materials & WIP, plant FG, field
FG, field samples, other) / (COGS / 365)

Inventory days of supply total gross value of inventory at standard cost before Make 3 (Scor) Cost
reserved for excess and obsolescence. Only includes
inventro on company books, future liabilities should not be
included. Five point annual average of the sum of all
gross inventories; (raw materials & WIP, plant FG, field
FG, field samples, other) / (COGS / 365)

Inventory Obsolescence Deliver 3 (Scor) Assets

Inventory Obsolescence Make 3 (Scor) Cost
Inventory Obsolescence Plan 3 (Scor) Assets
Inventory Obsolescence as a % of Total Inventory the annual obsolete and scrap reserves taken for Deliver 2 (Scor) Assets
inventory obsolescence expressed as a percentage of
annual average gross inventory value
Inventory Obsolescence as a % of Total Inventory the annual obsolete and scrap reserves taken for Make 2 (Scor) Assets
inventory obsolescence expressed as a percentage of
annual average gross inventory value
Inventory Obsolescence as a % of Total Inventory the annual obsolete and scrap reserves taken for Plan 2 (Scor) Assets
inventory obsolescence expressed as a percentage of
annual average gross inventory value

[Link] page 11 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Inventory Obsolescence as a % of Total Inventory the annual obsolete and scrap reserves taken for Deliver 3 (Scor) Assets
inventory obsolescence expressed as a percentage of
annual average gross inventory value
Inventory Obsolescence as a % of Total Inventory the annual obsolete and scrap reserves taken for Make 3 (Scor) Assets
inventory obsolescence expressed as a percentage of
annual average gross inventory value
Inventory Obsolescence as a % of Total Inventory the annual obsolete and scrap reserves taken for Plan 3 (Scor) Assets
inventory obsolescence expressed as a percentage of
annual average gross inventory value
Inventory Turnover Inventory turnover indicates how many times the Plan Assets
inventory was consumed and filled up based on value.
Total gross value of inventory at standard cost before
reserves for excess and obsolescence. Only includes
inventory on company books, future liabilities should not
be included. Annual total value of transfers(issues) are
Cost of Goods Sold when all material is stored in
inventories, else only the cost of goods sold from the
stock products. Also known as Inventory Turns. Annual
total quantity of transfers, issues / Annual average
quantity of gross inventory

Item/Product/grade changeover time no definition provided by SCOR Make 2 (Scor) Flexibility & Responsiveness
Item/Product/grade changeover time no definition provided by SCOR Make 3 (Scor) Flexibility & Responsiveness
Machine Wait Time % of time a machine facility is idle 1 minus the utilization Make 3 (Scor) Flexibility & Responsiveness
rate
Make cycle time order release to start actual build time + total build cycle Make 3 (Scor) Flexibility & Responsiveness
time + end build to leave plant (i.e., moves to on/off-site
distribution or goes to customer). For continuous an
mixed processes, manufacturing cycle time is calculated
as the average nunmber of units (doses, kilos, gallons,
etc) in process divided by the average daily output in
units.

Make Flexibility the time it typically takes to implement a sustainable Plan 2 (Scor) Flexibility & Responsiveness
unplanned increase in end product supply of 20% if each
of the following factors was the only constraint: - internal
manufacturing capacity, - constraining processes, - key
components/materials availabilty, - direct labor availability

Make Flexibility the time it typically takes to implement a sustainable Plan 3 (Scor) Flexibility & Responsiveness
unplanned increase in end product supply of 20% if each
of the following factors was the only constraint: - internal
manufacturing capacity, - constraining processes, - key
components/materials availabilty, - direct labor availability

Management Decision Timeframe Ratio ratio of the time needed to make a decision about a Make 2 (Scor) Flexibility & Responsiveness
particular process divided by the cycle time of that (Enable
process. (this generates a number that is better if it is Process)
lower). For exemple, if an operation can be performed in 2
hours, and it takes 4 hours to make a decision about that
operation, the ratio would be 200%. The timeframe would
be affected by the time it takes to collect data, process
information, develop knowledge and evaluate the
situation, and implement the decision.

Manufacturing Preparation Cycle Time total time from demand to release of manufacturing details Make 2 (Scor) Flexibility & Responsiveness
(Enable
Process)
Material Acquisition Costs Material acquisition costs include costs incurred for Source 2 (Scor) Cost
production materials: sum of materials management and
planning, supplier quality engineering, inbound freight and
duties, receiving and material storage, incoming
inspection, material process engineering and tooling
costs.

Material Losses Make 3 (Scor) Cost

Material Management and Planning Costs as a % of material (commodity) management and planning - all Source 3 (Scor) Cost
Material Acquisition Costs costs associated with supplier sourcing, contract
negotiation and qualification and the preparation,
placement, and tracking of a purchase order expressed
as a percentage of material acquisition costs. This
category includes all costs related to buyer/planners.

Material Overhead Cost Per Dollar of Material Total material carrying costs which include all capital cost, Plan 2 (Scor) Cost
Expenditure storage cost, and risk costs divided by the total cost of
qcquiring the material
Material Planning Costs Plan 3 (Scor) Cost
Material Process Engineering as a % of Material material process engineering = cost associated with tasks Source 3 (Scor) Cost
Acquisition Costs required to document and communicate material
specification, as well as reviews to improve the
manufacturability of the purchased item; expressed as a
percentage of material acquisition costs.
Material Requisition Cycle Time total amount of time required converting the identification Make 3 (Scor) Flexibility & Responsiveness
of capacity needs for key material resources to the receipt
of those resources

[Link] page 12 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

New Product Release Phase In, and Maint. as a % of Includes releasing new products to the field, maintaining Deliver Cost
Order Mngt. Costs released products, assigning product ID, defining
configurations and packaging, publishing availability
schedules, release letters and updates, and maintaining
product databases. Expressed as a % of Order
Management Costs. ( Releasing new products to the field
costs + maintaining released products costs + assigning
product ID costs+ defining configurations and packaging
costs + publishing availability schedules costs + release
letters and updates costs + maintaining product
databases costs ) / Order Management Costs * 100

Number of ECOs total number of revisions to a blueprint or design released Make 2 (Scor) Flexibility & Responsiveness
by engineering to modify or orrecta part, engineering
change orders (ECO). The request for the change can be
from a customer or from production quality control or
another department.
Number of ECOs total number of revisions to a blueprint or design released Make 3 (Scor) Flexibility & Responsiveness
by engineering to modify or orrecta part, engineering
change orders (ECO). The request for the change can be
from a customer or from production quality control or
another department.
Number of End Products/SKU’s total number of unique end item product offerings. End Plan 2 (Scor) Flexibility & Responsiveness
items are idividually planned and managed.
Number of End Products/SKU’s total number of unique end item product offerings. End Plan 3 (Scor) Flexibility & Responsiveness
items are idividually planned and managed.
Number of Supply Sources total number of internal and external direct production Plan 2 (Scor) Cost
material suppliers used
Number of Supply Sources total number of internal and external direct production Plan 3 (Scor) Cost
material suppliers used
Obsolete Inventory Plan 2 (Scor) Cost
Opportunity Costs The opportunity cost of holding inventory. Cost of capital * Plan Cost
average net value of inventory
Order Consolidation Profile consolidation is defined as the activities associated with Deliver 3 (Scor) Delivery Reliability
filling a customer order by bringin together in one physical
place all of the line items ordered by the customer. Some
of these may come directly from the production line and
others may be picked from stock. The following profiles
have been captured: - Shipped direct to customer's dock
from point of manufacture (no consolidation). - Shipped
direct to the customer with consolidation completed, local
to customer by your transport company. - Moved to on-
site staging location for consolidation and shipment direct
to customer. - Moved to on-site stockroom for later pick,
pack and ship. - Shipped to different locations for
consolidation or later pick pack and ship.

Order Entry Net value of incoming orders Deliver Delivery Reliability

Order Entry and Maintenance Costs Includes costs for maintaining the customer database, Deliver 3 (Scor) Cost
credit check, accepting new orders and adding them to
the order system as well as later order modifcations.

Order Entry Complete to Order Ready for Shipment including release to manufacturing, order configuration Deliver 3 (Scor) Flexibility & Responsiveness
Time verification, production scheduling, build, pick/pack, and
prepare for shipment time, in calendar days.
Order Entry Complete to Start Manufacture Time time from completion of order entr to that of the release to Deliver 3 (Scor) Flexibility & Responsiveness
maufacturing, in calendar days.
Order Fill Average number of orders that were successfully filled Deliver Delivery Reliability
complete for a specific time period divided by the total
number of orders placed for the same time period. Total
Number of Orders Filled Complete / Total Number of
Orders Placed * 100
Order Fill rate Plan 3 (Scor) Delivery Reliability
Order Fulfillment Costs includes costs for processing the order, allocating Deliver 3 (Scor) Cost
inventory, ordering form the internal or external supplier,
scheduling the shipment, reporting order status and
initiating shipment.
Order fulfillment Cycle Time Deliver 2 (Scor) Flexibility & Responsiveness
Order fulfillment Cycle Time Make 2 (Scor) Flexibility & Responsiveness
Order fulfillment Cycle Time Make 3 (Scor) Flexibility & Responsiveness
Order Fulfillment Lead Times The average actual lead times consistently achieved, from Plan Flexibility & Responsiveness
Order Receipt to Order Entry Complete, Order Entry
Complete to Start-Build, Start Build to Order Ready for
Shipment, Order Ready for Shipment to Customer
Receipt of Order. (Sum of time difference between 'Order
Entry' - 'Customer Receipt of Orders') / Total number of
orders

[Link] page 13 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Order Fulfillment Lead Times the average actual lead times consitently achieved, from n.a. 1 (Scor) Delivery Reliability
customer signature/authorization to order receipt, order
receipt to order entry complete, order entry complete to
start-build, start build to order ready for shipment, order
ready for shipment to customer receipt of order to
installation complete.

Order Fulfillment Lead Times the average actual lead times consitently achieved, from Make 2 (Scor) Delivery Reliability
customer signature/authorization to order receipt, order
receipt to order entry complete, order entry complete to
start-build, start build to order ready for shipment, order
ready for shipment to customer receipt of order to
installation complete.

Order Fulfillment Lead Times the average actual lead times consitently achieved, from Deliver 2 (Scor) Delivery Reliability
customer signature/authorization to order receipt, order
receipt to order entry complete, order entry complete to
start-build, start build to order ready for shipment, order
ready for shipment to customer receipt of order to
installation complete.

Order Fulfillment Lead Times the average actual lead times consitently achieved, from Make 3 (Scor) Delivery Reliability
customer signature/authorization to order receipt, order
receipt to order entry complete, order entry complete to
start-build, start build to order ready for shipment, order
ready for shipment to customer receipt of order to
installation complete.

Order Line Items Fill Average of daily calculations of number of line items that Deliver Delivery Reliability
were successfully 100% filled, divided by the total number
of line items ordered for a specific time period. Total
number of order lines items filled complete / Total number
of order lines items ordered * 100
Order Management Costs create customer order costs + order entry and Plan 2 (Scor) Cost
maintanance costs + contract/program and channel
managment costs + installation planning costs + order
fulfillment costs + distribution costs + transportation costs
+ installation costs + customer invoicing/accounting costs

Order Management Costs create customer order costs + order entry and Plan 3 (Scor) Cost
maintanance costs + contract/program and channel
managment costs + installation planning costs + order
fulfillment costs + distribution costs + transportation costs
+ installation costs + customer invoicing/accounting costs

Order Management Costs create customer order costs + order entry and Deliver 3 (Scor) Cost
maintanance costs + contract/program and channel
managment costs + installation planning costs + order
fulfillment costs + distribution costs + transportation costs
+ installation costs + customer invoicing/accounting costs

Order Management Costs create customer order costs + order entry and Deliver 3 (Scor) Cost
maintanance costs + contract/program and channel
managment costs + installation planning costs + order
fulfillment costs + distribution costs + transportation costs
+ installation costs + customer invoicing/accounting costs

Order Management Cycle Time total amount of time required converting a customer order Plan 2 (Scor) Flexibility & Responsiveness
into a receipt by the customer. Also called order fulfillment
cycle time
Order Management Cycle Time total amount of time required converting a customer order Plan 3 (Scor) Flexibility & Responsiveness
into a receipt by the customer. Also called order fulfillment
cycle time
Order Ready for Shipment to Customer Receipt of total transit time + consolidation + queue time + additional Deliver 3 (Scor) Flexibility & Responsiveness
Order Time transit time to customer receipt of order (calendar days)

Order Receipt to Order Entry Complete Time time required, in calendar days, for order revalidation, Deliver 3 (Scor) Flexibility & Responsiveness
configuration check, credit check, and scheduling of
received orders.
Output Actual value of material produced at standard costs. Make Cost
Actual value of material produced at standard costs
Overhead cost Costs incurred in the operation of a business that cannot Make 2 (Scor) Cost
be directly related tothe individual products or services
produced. These costs, such as light, heat, supervision,
and maintenance, are grouped in several pools and
distributed to units of product or service b some standard
allocation method such as direct labor hours, direct labor
dollars, or direct materials dollars

Packaging costs Make 3 (Scor) Cost

Percent defective % of time a product is considerated unacceptable against Source 2 (Scor) Delivery Reliability
standard criteria. The # of unacceptable products divided
by the total number of units produced during the
manufacturing run.

[Link] page 14 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Percent defective % of time a product is considerated unacceptable against Source 3 (Scor) Delivery Reliability
standard criteria. The # of unacceptable products divided
by the total number of units produced during the
manufacturing run.
Percent of parts delivered to point of use % of material receipts that are delivered directly to Make 3 (Scor) Flexibility & Responsiveness
production or a consolidation point or to point of use on
the production floor with no inspetion or minor
visual/paperwork inspection only.
Percentage of Orders Scheduled to Customer % of orders whose delivery is scheduled to within an Deliver 3 (Scor) Delivery Reliability
Request agreed to time frame of the customer's requested delivery
date.
Percentage of Orders Scheduled to Customer % of orders whose delivery is scheduled to within an Make 3 (Scor) Delivery Reliability
Request agreed to time frame of the customer's requested delivery
date.
Perfect Order Fulfillment a perfect order is an order that meets all of the following n.a. 1 (Scor) Delivery Reliability
standards: delivered complete; all items on order are
delivered in the quantities requested; delivered on
customer's request date, using your customer's definition
of on-time-delivery; documentation supporting the order
including packing slips, bills of lading, invoices etc is
complete and accurate; perfect condition: faultlessly
installed (as applicable), correct configuration, customer-
ready, no damage.

Perfect Order Fulfillment a perfect order is an order that meets all of the following Deliver 2 (Scor) Delivery Reliability
standards: delivered complete; all items on order are
delivered in the quantities requested; delivered on
customer's request date, using your customer's definition
of on-time-delivery; documentation supporting the order
including packing slips, bills of lading, invoices etc is
complete and accurate; perfect condition: faultlessly
installed (as applicable), correct configuration, customer-
ready, no damage.

Perfect Order Fulfillment a perfect order is an order that meets all of the following Deliver 3 (Scor) Delivery Reliability
standards: delivered complete; all items on order are
delivered in the quantities requested; delivered on
customer's request date, using your customer's definition
of on-time-delivery; documentation supporting the order
including packing slips, bills of lading, invoices etc is
complete and accurate; perfect condition: faultlessly
installed (as applicable), correct configuration, customer-
ready, no damage.

Performance to customer commit date Make 2 (Scor) Delivery Reliability

Performance to customer commit date Deliver 3 (Scor) Delivery Reliability
Performance to customer request date Make 2 (Scor) Delivery Reliability
Performance to customer request date Deliver 3 (Scor) Delivery Reliability
Plan cost per hour Total planning expenditures divided by the total number of Make 2 (Scor) Cost
hours spent exercising the plan
Plan Stability # of changes within the critical time fence. In this case, Plan (Enable 2 (Scor) Delivery Reliability
the critical time fence is defined as the boundary between Process)
flexible capacity and fixed capacity.
Plan Stability # of changes within the critical time fence. In this case, Plan 3 (Scor) Delivery Reliability
the critical time fence is defined as the boundary between
flexible capacity and fixed capacity.
Planning Interval Data Accuracy Indicates the quality of the data that are used for the Plan Reliability
planning process. Only corrections of errors should be
counted. Number of corrections made per year
Plant Finished Goods Inventory Days of Supply gross plant finished goods inventory / (value of transfers / Deliver 3 (Scor) Assets
365 days)
Plant Finished Goods Inventory Days of Supply gross plant finished goods inventory / (value of transfers / Make 3 (Scor) Assets
365 days)
Plant-level order management costs Create customer order costs + order entry and Make 3 (Scor) Cost
maintanance costs + contract/program and channel
managment costs + installation planning costs + order
fulfillment costs + distribution costs + transportation costs
+ installation costs + customer invoicing/accounting costs

Product & Process Data Accuracy # of planning items with complete and accurate Product & Plan (Enable 2 (Scor) Delivery Reliability
Process data divided by the total number of planning Process)
items
Product & Process Data Accuracy # of planning items with complete and accurate Product & Plan 2 (Scor) Delivery Reliability
Process data divided by the total number of planning
items
Product & Process Data Accuracy # of planning items with complete and accurate Product & Plan 3 (Scor) Delivery Reliability
Process data divided by the total number of planning
items
Product & Process Data Accuracy Indicates the quality of the data that are used for the Make Reliability
planning process.(Bills of Material, Routings, Planning
Interval data) Only corrections of errors should be
counted. Number of corrections made per year

[Link] page 15 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Product Acquisition Cost Product acquisition costs include costs incurred for the Source 2 (Scor) Cost
production of product: sum of product management and
planning, supplier quality engineering, inbound freight and
duties, receiving and product storage, incoming
inspection, product process engineering and tooling
costs.

Product Acquisition Cost Product acquisition costs include costs incurred for the Deliver 3 (Scor) Cost
production of product: sum of product management and
planning, supplier quality engineering, inbound freight and
duties, receiving and product storage, incoming
inspection, product process engineering and tooling
costs.

Product Management & Planning costs as a % of Product (Commodity) Management and Planning – All Plan 3 (Scor) Cost
Product Acquisition Costs costs associated with supplier sourcing, contract
negotiation and qualification and the preparation,
placement, and tracking of a Purchase Order expressed
as a percentage of product acquisition costs. This
category includes all costs related to buyer/planners.

Product Management & Planning costs as a % of Product (Commodity) Management and Planning – All Source 3 (Scor) Cost
Product Acquisition Costs costs associated with supplier sourcing, contract
negotiation and qualification and the preparation,
placement, and tracking of a Purchase Order expressed
as a percentage of product acquisition costs. This
category includes all costs related to buyer/planners.

Product Process Engineering as a % of Product Product Process Engineering – Cost associated with Source 3 (Scor) Cost
Acquisition Costs tasks required to document and communicate product
specification, as well as reviews to improve the
manufacturability of the purchased item expressed as a
percentage of product acquisition costs.
Product Stucture Cycle Time Total time from demand to release of product structure Make 2 (Scor) Flexibility & Responsiveness
(Enable
Process)
Production Cycle Time Time difference from start to end of the production. Sum Make Flexibility & Responsiveness
of time difference form Start to the End of the production /
Total number of orders
Production Execution Time Average time a product spends on a resource/machine. Make Flexibility & Responsiveness
( Setup Time + Production Time + Tear Down Time ) /
Total number of orders
Production Flexibility Upside Flexibility: # of days required to achieve an n.a. 1 (Scor) Flexibility & Responsiveness
unplanned sustainable 20% increase in production.
Downside flexibility % order reduction sustainable at 30
days prior to delivery with no inventory or cost penalties.

Production Flexibility Upside Flexibility: # of days required to achieve an Make 3 (Scor) Delivery Reliability
unplanned sustainable 20% increase in production.
Downside flexibility % order reduction sustainable at 30
days prior to delivery with no inventory or cost penalties.

Production Lead Time Average time it takes for an order or product to go Make Flexibility & Responsiveness
through the shop floor. ( Transportation time: only inside
manufacturing! ). ( Setup Time + Production Time + Tear
Down Time + Wait Time + Queue Time + Transportation
Time ) / Total number of orders
Production Material Administrative Cost Administrative Costs associated with the handling / Make 2 (Scor) Cost
storage / movement of materials (Enable
Process)
Production Material Cycle Time Time required moving material to point of use Make 2 (Scor) Flexibility & Responsiveness
(Enable
Process)
Production Material Handling Cost Cost of handling / movement of materials used to support Make 2 (Scor) Cost
production (Enable
Process)
Production Material Handling Damage Cost of material damaged from handling / storage / Make 2 (Scor) Cost
movement as a % of total material cost (Enable
Process)
Production Material Storage Cost Cost of storage space used for the production materials Make 2 (Scor) Cost
(Enable
Process)
Production Plan Adherence Production plan adherence is calculated at the shippable Plan 2 (Scor) Delivery Reliability
end-product level in units, using the following formula:
(production plan - sum of variance) / (production plan) ;
where: production plan = the sum of the units planned to
be completed (i.e., placed into inventory or shipped) in
each month based upon the plan generated in the
previous month. Sum of variances = Sum of the absolute
values, at the end item level, of the differences between
each month's production plan as defined above and
actual production for the same month.

[Link] page 16 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Production Plan Adherence Production plan adherence is calculated at the shippable Plan 3 (Scor) Delivery Reliability
end-product level in units, using the following formula:
(production plan - sum of variance) / (production plan) ;
where: production plan = the sum of the units planned to
be completed (i.e., placed into inventory or shipped) in
each month based upon the plan generated in the
previous month. Sum of variances = Sum of the absolute
values, at the end item level, of the differences between
each month's production plan as defined above and
actual production for the same month.

Production Rules Preparation Cycle Time Total time from demand rules for production rules until Make 2 (Scor) Flexibility & Responsiveness
releases of production details (Enable
Process)
Published Delivery Lead Times The typical standard lead-time (after receipt of order) Deliver 2 (Scor) Flexibility & Responsiveness
currentl published to customers by the sales organization.
For typical orders only, not standing/re-supply orders.

Purchased Material by Geography # of the following distinct part numbers of: raw materials, Source 3 (Scor) Flexibility & Responsiveness
externally manufactured intermediates, toll manufactured
finished products, packaging product, labeling product
that are sourced within the following areas: 200 miles,
own country, own, continent, off-shore.

Quality levels no definition provided by SCOR Make 3 (Scor) Delivery Reliability

Quarantine time setting aside of the items from availability for use or sale Make 3 (Scor) Flexibility & Responsiveness
until all required quality tests have been performed and
conformance certified
Ratio of actual to theoretical cycle time the ratio of the measured time required for completion of Make 3 (Scor) Flexibility & Responsiveness
a set of tasks divided by the sum of the time required to
complete each task based on the rated efficiency of the
machinery and labor operations.
Ratio of actual to theoretical cycle time the ratio of the measured time required for completion of Make 3 (Scor) Assets
a set of tasks divided by the sum of the time required to
complete each task based on the rated efficiency of the
machinery and labor operations.
Raw Material & WIP Inventory Days of Supply raw material& WIP inventory days of supply are Plan 2 (Scor) Assets
calculated as gross raw material and WIP inventory /
(value of transfers / 365 days)
Raw Material & WIP Inventory Days of Supply raw material& WIP inventory days of supply are Deliver 2 (Scor) Assets
calculated as gross raw material and WIP inventory /
(value of transfers / 365 days)
Raw Material & WIP Inventory Days of Supply raw material& WIP inventory days of supply are Source Assets
calculated as gross raw material and WIP inventory /
(value of transfers / 365 days)
Raw Material & WIP Inventory Turnover Raw material & work-in-process (WIP) inventory turnover Source Assets
indicates how many times the inventory was consumed
and filled up based on value. Also known as Inventory
Turns. Annual total value of transfers, issues of raw
material and WIP / Annual average value of gross raw
material and WIP inventory

Raw Material Days of Supply Raw material inventory days of supply indicates how Source Assets
many days the inventory can satisfy the demand of raw
material based on value. Average annual value of gross
raw material inventory * 365 / Total annual value of
transfers, issues of raw material
Raw material inventory carrying costs sum of all costs associated with raw material inventory: Plan 2 (Scor) Cost
opportunity cost, shrinkage, insurance and taxes, and
total obsolescence.
Raw Material Inventory Turnover Raw material inventory turnover indicates how many Deliver Assets
times the inventory was consumed and filled up based on
value. Also known as Inventory Turns. Annual total value
of transfers, issues of raw material / Annual average value
of gross raw material inventory
Raw Material or Product Days-of-Supply raw material or product inventroy days of supply are Plan 2 (Scor) Cost
calculated as gross raw material or product inventory /
(value of transfers / 365 days)
Raw Material or Product Days-of-Supply raw material or product inventroy days of supply are Make 3 (Scor) Cost
calculated as gross raw material or product inventory /
(value of transfers / 365 days)
Raw Material or Product Days-of-Supply raw material or product inventroy days of supply are Plan 3 (Scor) Assets
calculated as gross raw material or product inventory /
(value of transfers / 365 days)
Raw Material or Product Days-of-Supply raw material or product inventroy days of supply are Source 3 (Scor) Assets
calculated as gross raw material or product inventory /
(value of transfers / 365 days)
Raw material shrinkage costs associated with breakage, pilferage, and Plan 2 (Scor) Cost
deterioration of raw material inventories

[Link] page 17 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Receiving and material or product storage costs as a receiving and material or product storage - all costs Source 3 (Scor) Cost
% to Material Acquisition Costs associated with taking possession of and storing material
or products. Includes warehouse space and
management, material receiving and stocking, processing
work orders, pricing, and internal material or product
movement. This does not include incoming inspection

Receiving and putaway cycle time total amount of time required moving materials from an Make 3 (Scor) Flexibility & Responsiveness
inbound location to an internal storag location
Receiving costs as a % of Material Acquisition Costs all costs associated with taking possession of product Source 3 (Scor) Cost
expressed as a percentage of product acquisition costs.
This does not include inspection.
Release cost per unit Make 3 (Scor) Cost
Replan Cycle Time time between the initial creation of the regenerated Plan 3 (Scor) Flexibility & Responsiveness
forecast and its reflection in the master production
schedule of the end-product production facilities.
Replan Cycle Time time between the initial creation of the regenerated Make 2 (Scor) Flexibility & Responsiveness
forecast and its reflection in the master production
schedule of the end-product production facilities.
Replan Cycle Time time between the initial creation of the regenerated Plan 2 (Scor) Flexibility & Responsiveness
forecast and its reflection in the master production
schedule of the end-product production facilities.
Responsiveness lead time minimizing elapsed time, including all delays, to receive a Make 3 (Scor) Flexibility & Responsiveness
customer order and transform resources into goods and
services, through to the point of customer receipt.

Return on Assets A financial measure of the relative income-producing Plan (Enable 2 (Scor) Assets
value of an asset. It is calculated as net income divided Process)
by total assets.
Return on Assets A financial measure of the relative income-producing Plan 2 (Scor) Assets
value of an asset. It is calculated as net income divided
by total assets.
Return Rate The Return Rate indicates how many items coming back Deliver Delivery Reliability
because the customer was not satisfied with the order.
Number of return items / Total number of order items *
100
Routing Data Accuracy # of planning items with complete and accurate routing Plan (Enable 2 (Scor) Reliability
information divided by the total number of planning items Process)

Routing Data Accuracy Indicates the quality of the routings that are used for the Make Reliability
planning process. Only corrections of errors should be
counted. Number of corrections made per year

Schedule achievement % of time that a plant achieves its production schedule. Make 3 (Scor) Delivery Reliability
This calculation is based on the number of scheduled
end-items or total volume for a specific period. Note: over-
shipments do not make up ofr undershipments.

Schedule Cycle Time Make 3 (Scor) Flexibility & Responsiveness

Schedule interval Make 3 (Scor) Flexibility & Responsiveness
Scheduled Resource Cost Make 3 (Scor) Cost
Scrap Actual scrap based on quantity. It makes sense to Make Cost
measure this for every (intermediate) product. Quantity
per period and material
Scrap expense Expenses incurred from material falling outside of Make 3 (Scor) Delivery Reliability
specifications and possessing characteristics that make
rework impractical.
Scrap expense Expenses incurred from material falling outside of Make 3 (Scor) Cost
specifications and possessing characteristics that make
rework impractical.
Shrinkage costs associated with breakage, pilferage, and Plan 2 (Scor) Cost
deterioration of inventories
Source Cycle Time Cumulative lead-time (total average combinded inside- Source 3 (Scor) Flexibility & Responsiveness
plant planning, supplier lead time [internal or external],
receiving, handling, etc from demand identification at the
factor until the products are available in the production
facility) required sourcing 95% (chosen to eliminate
outlying data) of the dollar value of products from internal
and external suppliers.

Source Flexibility Time required to achieve a sustained increase in volume Plan 2 (Scor) Flexibility & Responsiveness
by 20%
Source Flexibility Time required to achieve a sustained increase in volume Plan 3 (Scor) Flexibility & Responsiveness
by 20%
Staging time Make 3 (Scor) Delivery Reliability
Storage Space Utilization Volume of all materials stored divided by the total volume Make 2 (Scor) Assets
of the storage facility expressed as a percentage (Enable
Process)
Supplier Cycle Time time required for a supplier to complete a single cycle, Plan 2 (Scor) Flexibility & Responsiveness
beginning with the receipt of an order and ending with the
fulfillment of that order.

[Link] page 18 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Supplier Cycle Time time required for a supplier to complete a single cycle, Plan 3 (Scor) Flexibility & Responsiveness
beginning with the receipt of an order and ending with the
fulfillment of that order.
Supplier delivery to entity’s request date Plan 3 (Scor) Delivery Reliability
Supplier Fill Rate % of times a supplier completes a commitment to a Plan 2 (Scor) Delivery Reliability
customer to ship or deliver an order within 24 hours
Supplier Fill Rate % of times a supplier completes a commitment to a Plan 3 (Scor) Delivery Reliability
customer to ship or deliver an order within 24 hours
Supplier on-time delivery performance % of orders that are fulfilled on or efore the original Plan 2 (Scor) Delivery Reliability
customer requested date (suppliers performance
measured by the customer)
Supplier on-time delivery performance % of orders that are fulfilled on or efore the original Plan 3 (Scor) Delivery Reliability
customer requested date (suppliers performance
measured by the customer)
Supplier on-time Delivery Performance % of orders that are fulfilled on or efore the original Source 3 (Scor) Delivery Reliability
customer requested date (suppliers performance
measured by the customer)
Supplier Quality Engineering Costs The costs associated with the determination, Source Cost
development/certification, and monitoring of suppliers'
capabilities to fully satisfy the applicable quality and
regulatory requirements. Determination of supplier costs +
development, certification costs + monitoring costs

Supply chain finance costs costs associated with paying invoices, auditing physical Plan 3 (Scor) Cost
counts, performing inventory accounting, and collecting
accounts receivable. (does not include customer
invoicing/accounting costs)
Supply Chain Responsiveness n.a. 1 (Scor) Flexibility & Responsiveness
Tooling Costs The costs associated with the design, development, and Source Cost
depreciation of the tooling required to produce a
purchased item. Tool design costs + tool development
and depreciation costs
Total build time average time for build-to-stock or configure-to-order Make 3 (Scor) Flexibility & Responsiveness
products from when production begins on the released
work order until the build is completed and unit deemed
shippable.
Total Finished Goods Inventory DOS Plan 2 (Scor) Assets
Total Inventory DOS Plan 2 (Scor) Assets
Total Inventory DOS Plan 3 (Scor) Assets
Total Item/Product manufacture time Make 2 (Scor) Flexibility & Responsiveness
Total Logistics Costs sum of supply chain related MIS, finance, planning, Plan 2 (Scor) Cost
inventory carrying, material acquisition, order
management cost.
Total Logistics Management Cost n.a. 1 (Scor) Cost
Total manufacturing employment no definition provided by SCOR Make 3 (Scor) Cost
Total Obsolescence for Raw Material, WIP and Inventory reserves taken due to obsolescence and scrap. Plan Cost
Finished Goods Inventory Obsolescence inventory + scrap inventory
Total Order Management Cost Deliver 2 (Scor) Cost
Total Order Management Cost Plan 2 (Scor) Cost
Total Order Management Cost Deliver 3 (Scor) Cost
Total Raw Material Inventory DOS Plan 2 (Scor) Assets
Total Source Lead Time cumulative lead-time required to source 95% of the dollar Source 3 (Scor) Flexibility & Responsiveness
value of materials from internal and external suppliers

Total Source Lead Time cumulative lead-time required to source 95% of the dollar Source 2 (Scor) Flexibility & Responsiveness
value of materials from internal and external suppliers

Total Supply Chain Cost total logistics costs are the sum of supply-chain related Plan 2 (Scor) Cost
MIS, finance and planning, inventory carrying, materials
acquisition, and order management costs
Total Supply Chain Cost total logistics costs are the sum of supply-chain related Plan (Enable 2 (Scor) Cost
MIS, finance and planning, inventory carrying, materials Process)
acquisition, and order management costs
Total WIP Inventory DOS total WIP inventory days of supply are calculated as gross Plan 2 (Scor) Assets
WIP inventory / (value of transfers /365 days)
Total WIP Inventory DOS total WIP inventory days of supply are calculated as gross Make 3 (Scor) Cost
WIP inventory / (value of transfers /365 days)
Total WIP Inventory DOS total WIP inventory days of supply are calculated as gross Plan 3 (Scor) Assets
WIP inventory / (value of transfers /365 days)
Touch labor job classifications no definition provided by SCOR Make 3 (Scor) Assets
Training/Education total number of programs aimed at new work methods for Make 2 (Scor)
experienced workers and short courses in current
practices for new employees to increase productivity
Training/Education total number of programs aimed at new work methods for Make 3 (Scor)
experienced workers and short courses in current
practices for new employees to increase productivity
Transportation Costs includes all company paid freight and duties from point of Deliver 3 (Scor) Cost
manufacture to end-customer or channel
Transportation Cycle Time Time spend for transportation [includes packaging] Deliver Flexibility & Responsiveness
Unit cost total labor, material, and overhead cost for one unit Make 2 (Scor) Cost
production, e.g. one part, one gallon, one pound

[Link] page 19 of 33
Key Performance Indicator Repository
Business Process Methodology
Supply Chain

This list of performance indicators is based on SCOR 3.1, released in 2000.

Green = new with Release 3.1 ; Blue = obsolete with Release 3.1, Brown = taken out of the SAP Solution Map Composer, not included in the SCOR model

Performance Indicator Definition Process Level Performance Attribute

Upside Production Flexibility The time is typically takes to implement a sustainable Plan Flexibility & Responsiveness
unplanned increase in end product supply of 20% if each
of the factors shown below was the only constraint: -
Internal manufacturing capacity, - Constraining
processes, - Key components/materials availability, -
Direct labor availability (the maximum of those
constraints). Lead Time in days to achieve 20%

Validation Frequency amount of time between reviews of a process. For Make 2 (Scor)
exemple, Production Process Validation Frequency would (Enable
refer to the amount of times between the reviews of the Process)
Production Process. This generally would be performed
periodically to ensure that the process is generating the
desired result with the desired inputs.

Value-Added Employee Productivity Value added per employee = (total product revenue - total n.a. 1 (Scor) Cost
material purchases ) / total employment in full-time-
equivalents
Value-Added Employee Productivity Value added per employee = (total product revenue - total Make 2 (Scor) Cost
material purchases ) / total employment in full-time-
equivalents
Value-Added Employee Productivity Value added per employee = (total product revenue - total Plan 2 (Scor) Cost
material purchases ) / total employment in full-time-
equivalents
Value-Added Employee Productivity Value added per employee = (total product revenue - total Make 3 (Scor) Cost
material purchases ) / total employment in full-time-
equivalents
Warranty and returns # of returns within the warranty period. Warranty is a Make 3 (Scor) Delivery Reliability
commitment, either expressed or implied, that a certain
fact regarding the subject matter of a contract is presently
true or will be true.
Warranty costs Warranty costs include materials, labor and problem n.a. 1 (Scor) Cost
diagnosis for product defects
Warranty costs Warranty costs include materials, labor and problem Make 2 (Scor) Delivery Reliability
diagnosis for product defects
Warranty costs Warranty costs include materials, labor and problem Make 3 (Scor) Delivery Reliability
diagnosis for product defects
Warranty costs Warranty costs include materials, labor and problem Make 3 (Scor) Cost
diagnosis for product defects
WIP Inventory DOS Make 2 (Scor) Assets
WIP Shrinkage costs associated with breakage, pilferage, and Plan 2 (Scor) Cost
deterioration of WIP inventories. The loss of any material,
part, and/or assembly that are being worked on or are
waiting to be processed within the operations system.

Work In Process (WIP) Shrinkage The costs associated with breakage, pilferage, and Make Cost
deterioration of work-in-process (WIP) inventories. WIP
breakage + WIP pilferage + deterioration of WIP
inventories
Work-In-Process Inventory Carrying Costs sum of all costs associated with WIP inventory: Plan 2 (Scor) Cost
opportunity cost, shrinkage, insurance and taxes, and
total obsolescence
Work-In-Process Inventory Carrying Costs sum of all costs associated with WIP inventory: Plan 3 (Scor) Cost
opportunity cost, shrinkage, insurance and taxes, and
total obsolescence
Yield the ratio of usable outputs from a process to its input Make 2 (Scor) Delivery Reliability
Yield the ratio of usable outputs from a process to its input Make 3 (Scor) Delivery Reliability
Yield variability the condition that occurs when the output of a process is Make 3 (Scor) Assets
not consistently repeatable either in quantity, quality, or
combination of these.
BOM ?
CoGS Cost of Goods sold
ECO Engineering change orders
Product Structure Recipes / formulas / BOMs / that define the composition
of a product
SKU Stock keeping unit
WIP Work in process

[Link] page 20 of 33
Key Performance Indicator Repository
Business Process Methodology
Marketing

This list is the outcome of a solution map created out of all marketing-relevant processes of all solution maps, completed by performance indicators provided by the performance
indicator overview files (.ppt) of the Solution Map Composer.

Performance Indicator Definition

Cash to Cash Cycle Time The Cash To Cash Cycle Time represents the time from which your company spends a dollar on purchased
material to when it realizes a dollar received in revenue and has a direct impact on your company’s cash flow.
Effective Supply Chain Planning reduces the inventory conversion period by manufacturing, processing and selling
goods more quickly. This in turn reduces the Cash-to-Cash cycle.
Campaign/Event Cost Revenue Ratio Revenues generated by events and campaigns divided by campaign event costs. Revenues generated by events
and campaigns / Campaign event costs * 100
Churn Loss of customers per year as a percentage of total customers
Contact Efficiency Shows how efficient a contact is (how much revenue was generated out of a contact). (Total Profit, each / Total
Contacts, each) / (Total Profit, all / Total Contacts, all)
Coverage The number of units that can be sold in a certain area. Number of visited units of potential target group/ Total
Customer Satisfaction Index potential ofSatisfaction
Customer target groupIndex is an abstract measure how well the company serves the customers. It can't be
predefined, because the company has to find out, what the customers want and then look how well they fulfill the
needs of the customers. Usually it is an index.
Lead times: product development Time from concept to product launch. Time difference between 'Concept' - 'Product launch'
Market Share A company revenue divided by all the revenue of competitors within the same market: Companies Revenue / Total
Category Revenue * 100
Market Share Index The regional market share expressed as a percentage of the national market share. Companies Revenue / Total
Category Revenue * 100
Market Share Index The regional market share expressed as a percentage of the national market share. Regional market share /
National market share *100
Market Success Factor Profitability as Net Income divided by Revenue. Profitability * Market share Index
Market Survey Costs All expenses for a market survey in a period.
Percent of New Customers per Year Number of new customers per year divided by total customers. Total customers are the number of customers at the
end of the period.
Percent Revenue Growth – Existing The revenues growth generated by existing customer in the period compared with the previous period expressed
Customers as a percentage. (Revenues generated by existing customer in the period - Revenues generated by existing
customer in previous period) / Revenues generated by existing customer in previous period * 100
Percentage of Customer Complaints Number of customer complaints expressed as a percentage of total customers in a period. The average number of
customer is the number at the end of the period plus the number at the beginning divided by two.
Percentage of Customers getting served via The percentage of customers that get served via internet Protocol (email,...) in comparison to all the customers
Internet Protocol services (requests) done by a company. Customers that get served via Internet Protocol / Total customers get
served * 100
Percentage of Sales New Products The percentage of new products of the total sales volume. Sales from New Products / Sales * 100
Percentage of Service Requests The number of service requests from customers expressed as a percentage of total customers in a period. The
average number of customer is the number at the end of the period plus the number at the beginning divided by
two.
Percentage of Warranty Requests The number of warranty requests expressed as a percentage of total customers in a period. The average number
of customer is the number at the end of the period plus the number at the beginning divided by two.
Potential Exploitation How the potential business is realized. The calculation is in case of monetary potential (expected/estimated
revenue). If only the numeric potential is available, the 'Covered potential units' are used instead of Revenue.
Potential Exploitation Index Index of whether or not the Potential (expected/estimated revenue) in the market was realized. Regional potential
exploitation / National potential exploitation *100
Sales vs Year Ago Compare Sales vs. Sales a year ago expressed as a percentage. Sales this year / Sales previous year * 100

Service Costs Revenue Ratio Revenue created from service work vs. Costs. (Service Costs / Service Revenue) * 100%
Time to Market The time between the start of a project, development or new product to the time it appears in the market. Number
of weeks between initial idea and delivery of 1st series
Win/lost Ratio The percentage of contracts done in comparison to all inquiries. It is similar to all customers divided by all prospects
in a certain period. Win / total amount of inquiries

[Link] page 21 of 33
Key Performance Indicator Repository
Business Process Methodology
Sales

This list is the outcome of a solution map created out of all sales-relevant processes of all solution maps.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer

Performance Indicator Definition

% of EDI Transactions Percentage of orders received via electronic data interchange, EDI. Orders received via EDI / Total number of
received orders * 100
Annual Sales To Inventory Ratio By comparing Inventory to Sales, this ratio indicates whether there is too little or too much inventory to support the
given level of sales. The objective is to have the smallest level of inventory while still meeting sales requirements
efficiently. Note: Cost of Goods Sold is generally used for this estimate (see: Inventory Turnover), but Sales may
substitute for it. The Sales-To-Inventory-Ratio has to be annualized, because Sales accumulate over the year and
Inventory balances remain more or less constant from quarter to quarter. Sales/Average Inventory

Average Collection Period The Average Collection Period is the average number of days between the day the invoice is sent out and the day
the customer pays the bill. Note: Average Daily Credit Sales equals Sales/365. This computation indicates the
company's efficiency in enforcing its credit policy. Average Receivables/Sales * 365
Avg. Sales Rep Expenses The average expenses incurred by sales reps in a period. Total Expenses / Number of Sales Reps
Backlog Order, which has not been delivered yet. Order, which has not been delivered yet (net value)
Campaign/Event Cost Revenue Ratio Revenues generated by events and campaigns divided by campaign event costs. Revenues generated by events
and campaigns / Campaign event costs * 100
Cash to Cash Cycle Time The Cash To Cash Cycle Time represents the time from which your company spends a dollar on purchased
material to when it realizes a dollar received in revenue and has a direct impact on your company’s cash flow.
Effective Supply Chain Planning reduces the inventory conversion period by manufacturing, processing and selling
goods more quickly. This in turn reduces the Cash-to-Cash cycle. Inventory days of supply + Days sales
outstanding - Average payment period for materials
Channel Inventory Finished Goods inventory which is allocated to a particular distribution channel, i.e. OEM goods, retail. Finished
Goods inventory allocated to a particular distribution channel / Finished Goods inventory * 100
Channel Obsolescence Costs Aging allowances paid to channel partners, provisions for buy-back agreements. All costs related to channel
obsolescence
Churn Loss of customers per year as a percentage of total customers. Number of lost customers / Total customers * 100

Complete Manufacture to Order Ready for Average time difference from 'complete manufacture' to 'order ready for shipment'. Includes pick/pack and prepare
Shipment Time for shipment time, in calendar days. (Sum of time difference from 'End Production' - 'Ready to ship') / Total number
orders
Contact Efficiency Shows how efficient a contact is (how much revenue was generated out of a contact). (Total Profit, each / Total
Contacts, each) / (Total Profit, all / Total Contacts, all)
Contract Negotiation Time Days (as persondays) required to negotiate contract with clients within a period. Total number of days/Number of
contracts
Contribution Margin Rate Contribution Margin as a percentage of Sales. (Sales – Cost of Goods Sold) / Sales
Cost Of Direct Labor To Sales Ratio Any of the individual cost elements may be used to check the feasibility of Sales projections and to estimate costs
for upcoming periods. Direct Labor Costs/Sales * 100
Cost of Goods Sold To Sale Ratio The ratio of Cost of Goods Sold divided by Sales is useful in two ways: First, if the organization has established an
average ratio of Cost of Goods Sold to Sales, it confirms whether an actual Cost of Goods Sold figure is above or
below the historical average. Then, the Total Cost of Goods Sold can be estimated based on projected Sales, if the
ratio proves to be stable over time. Cost of Goods Sold/Sales * 100
Cost Of Material And ODC To Sales Ratio The Cost Of Material And ODC Ratio is equal to the Cost Of Material and Other Direct Costs(ODC) divided by
Sales. This ratio can be used to check the feasibility of sales projections and to estimate costs for upcoming
periods. (Cost Of Material + other Direct Costs)/Sales * 100
Cost Per Quote Total cost to generate a quote
Coverage The number of units that can be sold in a certain area. Number of visited units of potential target group/ Total
potential of target group
Create Customer Order Costs Includes costs for creating and pricing configurations to order and preparing order documents. Creating and pricing
configurations to order costs + preparing order documents costs
Create Customer Order Costs as a % of Order Includes costs for creating and pricing configurations to order and preparing order documents. Expressed as a %
Management Costs of Order Management Costs. ( Creating and pricing configurations to order costs + preparing order documents
costs ) / Order Management Costs * 100
Credit memo value rate The credit memo which was giving to the customer expressed as a percentage of net value of sold products. Credit
memo net value / Sales * 100
Customer Invoicing, Accounting Costs as a Includes costs for invoicing, processing customer payments, and verifying customer satisfaction. Expressed as a %
% of Order Mngt. Costs of Order Management Costs. ( Invoicing costs + processing customer payments costs + verifying customer
satisfaction costs ) / Order Management Costs * 100
Customer Satisfaction Index Customer Satisfaction Index is an abstract measure how well the company serves the customers. It can't be
predefined, because the company has to find out, what the customers want and then look how well they fulfill the
needs of the customers. Usually it is an index
Customer Signature, Authorization to Order Time, in calendar days, from when the customer authorizes an order to the time that the order is received. (Sum of
Receipt Time time difference between 'Customer authorizes an order' - 'Order is received') / Total number of orders
Cycle Time: Inquiry to Contract How long it takes in average to get an inquiry to a contract. (Sum of time difference between 'Inquiry' - 'Contract') /
Total contracts
Days Of Sales In Backlog Backlog: Order, which has not been delivered yet. The historical analysis of the Days-Of-Sales-In-Backlog factor
helps to evaluate an organization's ability to handle its backlog. Note: Use 90 days for a quarter, 360 for a year.
[Backlog / Sales]*Days In Period
Delivery Date Accuracy Difference between planned delivery date and actual delivery date. (Sum of ('Planned delivery date' - 'Actual
delivery date')) / Number of projects
Delivery Performance to Scheduled Commit The percentage of orders that are fulfilled on or before the original scheduled or committed date. The number of
Date orders that are fulfilled on or before the original scheduled or committed date / Total number of orders * 100

Distribution Costs Includes costs for warehouse space and management, finished goods receiving and stocking, processing
shipments, picking and consolidating, selecting carrier, and staging products/systems. Warehouse space and
management costs + finished goods receiving and stocking costs + processing shipments costs + picking and
consolidating costs + selecting carrier costs + staging products, systems costs

[Link] page 22 of 33
Key Performance Indicator Repository
Business Process Methodology
Sales

This list is the outcome of a solution map created out of all sales-relevant processes of all solution maps.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer

Performance Indicator Definition

Distribution Costs as a % of Order Includes costs for warehouse space and management, finished goods receiving and stocking, processing
Management Costs shipments, picking and consolidating, selecting carrier, and staging products/systems. Expressed as a % of Order
Management Costs. ( Warehouse space and management costs + finished goods receiving and stocking costs +
processing shipments costs + picking and consolidating costs + selecting carrier costs + staging products, systems
costs ) / Order Management Costs * 100
Forecast Accuracy Forecast accuracy is calculated at the shippable end-product level for each distribution channel, and for both units
and dollars. Forecast Accuracy = Forecast Sum - Sum of Variance / Forecast Sum. Forecast Sum = The sum of
the units or dollars forecasted to be shipped in each month based upon the forecast generated three months prior.
Sum of Variances = The sum of the absolute values, at the forecasted line item level, of the differences between
each month's forecast as defined above and actual demand for the same month. (Forecast Sum - Sum of
Variance) / Forecast Sum

Forecast Cycle The time between forecast regeneration that reflect true changes in marketplace demand for shippable end-
products. Only true "bottom-up" forecasts are counted: for example, if weekly or monthly updates to the forecast
only recalendarize or shift dates for the forecast to avoid changing the annual dollar-based forecast, they should
not be considered true forecast regeneration. The time between forecast regeneration
Invoice Accuracy Rate The percentage of faultless invoices. Faultless Invoices / Total Invoices * 100
Market Share A company revenue divided by all the revenue of competitors within the same market. Companies Revenue / Total
Category Revenue * 100
Market Share Index The regional market share expressed as a percentage of the national market share. Regional market share /
National market share *100
Market Success Factor Profitability as Net Income divided by Revenue. Profitability * Market share Index
Number of Callbacks as % of total inquiries The number of callbacks expressed as a % of total inquiries. It indicates how many times an employee has to call
back to the customer (or other persons) to clarify things. Number of call backs / total inquiries * 100
Ontime Pricing to Customers The customer requests a pricing at a specific date. Ontime means before or on the specific date. OnTime Pricing /
Total Pricing Request * 100
Order Fulfillment Lead Times The average actual lead times consistently achieved, from Order Receipt to Order Entry Complete, Order Entry
Complete to Start-Build, Start Build to Order Ready for Shipment, Order Ready for Shipment to Customer Receipt
of Order. (Sum of time difference between 'Order Entry' - 'Customer Receipt of Orders') / Total number of orders

Overhead To Sales Ratio The Overhead-To-Sales-Ratio is equal to the Overhead divided by Sales. This ratio can be used to check the
feasibility of sales projections and to estimate costs for upcoming periods. Overhead/Sales * 100
Percent of New Customers per Year Number of new customers per year divided by total customers. Total customers are the number of customers at
the end of the period. Number of new customers per year/ Total customers * 100
Percent Revenue Growth – Existing The revenues growth generated by existing customer in the period compared with the previous period expressed
Customers as a percentage. (Revenues generated by existing customer in the period - Revenues generated by existing
customer in previous period) / Revenues generated by existing customer in previous period * 100
Percentage of Customer Complaints Number of customer complaints expressed as a percentage of total customers in a period. The average number of
customer is the number at the end of the period plus the number at the beginning divided by two. Number of
customer complaints / Average number of customers * 100
Percentage of Customers getting served via The percentage of customers that get served via internet Protocol (email,...) in comparison to all the customers
Internet Protocol services (requests) done by a company. Customers that get served via Internet Protocol / Total customers get
served * 100
Percentage of Escalations The number of escalations expressed as a percentage of total installations. Escalations / Total Installations * 100

Percentage of Inquiries taken over the Percentage of inquiries taken over the Internet. # of inquiries taken over the Internet / total # of inquiries * 100
Internet
Percentage of orders received via Internet The number of orders received over the Internet as a % of the total number of orders received. Number of orders
received via Internet / Total number of orders * 100
Percentage of Sales New Products The percentage of new products of the total sales volume. Sales from New Products / Sales * 100
Percentage of sales received via Internet The value of sales which come from orders received over the Internet as a % of total sales. Value of sales which
come from orders received over the Internet / Sales * 100
Perfect Order Fulfillment A “perfect order” is defined as an order that meets all of the following standards: Delivered complete; all items on
order are delivered in the quantities requested; Delivered on time to customer’s request date, using your
customer’s definition of on-time delivery; Documentation supporting the order including packing slips, bills of
lading, invoices, etc., is complete and accurate; Perfect condition: Faultlessly installed (as applicable), correct
configuration, customer-ready, no damage. Perfect fulfilled orders / Total orders * 100
Potential Exploitation How the potential business is realized. The calculation is in case of monetary potential (expected/estimated
revenue). If only the numeric potential is available, the 'Covered potential units' are used instead of Revenue.
Revenue / Potential *100
Potential Exploitation Index Index of whether or not the Potential (expected/estimated revenue) in the market was realized. Regional potential
exploitation / National potential exploitation *100
Quotation Quote Number of quotations necessary to get an order. Quotation / Orders
Returns % Sales Value of returns as a percentage of sales volume value (net values). Returns / Sales * 100
Sales Sales is Total Sales less allowances for return and bad debt. Total Sales - [Returns + Bad Debt]
Sales Cycle Time (Orders) The average time from initial inquiry to final billing. (Sum of time difference between 'Inquiry' - 'Final Billing') /
Number of total contracts
Sales vs Year Ago Compare Sales vs. Sales a year ago expressed as a percentage. Sales this year / Sales previous year * 100

Selling Expenses Cost incurred to sell (e.g. advertising, salesperson commission) or distribute merchandise
Selling Expenses To Sales Ratio The analysis of the ratio enables management to assess trends in the relationship between Selling Expenses and
Sales. The ratio also establishes expense limitations and controls and is a guideline for planning a realistic selling
expense budget. Selling Expenses/Sales * 100
Selling G&A Per Direct Labor Hour Rate The sum of Selling, General And Administrative Expenses divided by the total number of Direct Labor Hours
performed within the period. If a combined G&A and selling expense "rate" can be historically validated, it can
express what these expenses "should" be as a dollar rate per direct labor hour. (Selling Expenses, G&A
Expenses)/Direct Labor Hours

[Link] page 23 of 33
Key Performance Indicator Repository
Business Process Methodology
Sales

This list is the outcome of a solution map created out of all sales-relevant processes of all solution maps.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer

Performance Indicator Definition

Selling G&A To Direct Labor Costs Ratio The sum of Selling, General And Administrative Expenses divided by the total Direct Labor Costs spent within a
period. If the ratio can be accepted as a guideline, it enables the sales manager to insert an estimated dollar figure
in expense projections. (Selling Expenses, G&A Expenses)/Direct Labor Costs * 100
Selling G&A To Gross Profit Ratio The sum of Selling, General, and Administrative Costs (G&A) is divided by the company's Gross Profit for the
period. If the ratio proves valid over time, it can be applied to the profit for preliminary values until current or better
data is available. (Selling Expenses + G&A Expenses)/Gross Profit * 100
Selling G&A To Net Income Ratio The sum of Selling, General, and Administrative Costs (G&A) is divided by the company's Net Income for the
period. (Selling Expenses + G&A Expenses)/Net Income * 100
Selling G&A To Sales Ratio The sum of Selling, General, and Administrative Costs (G&A) is divided by the company's Sales for the period.
(Selling Expenses + G&A Expenses)/Sales * 100
Selling Price Calculation Time Time required to provide the customer with the price information. Time between inquiry intake and availability of
price information
Times Preferred Dividend Ratio The ratio compares Net Income with its Preferred Dividend. Dividends may have a great effect on Earnings Per
Share. For preferred shareholders, the Times-Preferred-Dividend-Ratio is a direct indication of how adequately the
paying corporation can meet this obligation. Net Income/Preferred Dividend * 100
Win/lost Ratio The percentage of contracts done in comparison to all inquiries. It is similar to all customers divided by all
prospects in a certain period. Win / total amount of inquiries

[Link] page 24 of 33
Key Performance Indicator Repository
Business Process Methodology
Service & Maintenance

This list is the outcome of a solution map created out of all service- and maintannce-relevant processes of all solution maps.
Service & maintance includes call center service activites, returns management, spare parts delivery as well as overhaul and large repair projects.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer
If for the considered service processes supply chain and sales aspects predominate, please refer to the metrics on the SCOR and sales sheet.

Performance Indicator Definition

Capacity Utilization A measure of how intensively a resource is being used to produce a good or service. Some factors that should be
considered are internal manufacturing capacity, constraining processes, direct labor availability and key
components/materials availability. Capacity load / Resource Capacity * 100
Cash to Cash Cycle Time The Cash To Cash Cycle Time represents the time from which your company spends a dollar on purchased
material to when it realizes a dollar received in revenue and has a direct impact on your company’s cash flow.
Effective Supply Chain Planning reduces the inventory conversion period by manufacturing, processing and selling
goods more quickly. This in turn reduces the Cash-to-Cash cycle. Inventory days of supply + Days sales
outstanding - Average payment period for materials
Churn Loss of customers per year as a percentage of total customers. Number of lost customers / Total customers * 100

Cost Estimate Accuracy % Difference in original cost estimate vs. final actuals (taking into account that the same scope is evaluated).
Percentage difference of cost estimate to final cost. (Actual Cost - Initial Cost Estimate) / Actual Cost * 100

Customer Satisfaction Index Customer Satisfaction Index is an abstract measure how well the company serves the customers. It can't be
Cycle Time: Inquiry to Contract predefined, because
How long it takes the company
in average to gethas to find to
an inquiry out, what the customers
a contract. want
(Sum of time and then
difference look how
between well they
'Inquiry' fulfill the /
- 'Contract')
needscontracts
Total of the customers. Usually it is an index
Delivery Date Accuracy Difference between planned delivery date and actual delivery date. (Sum of ('Planned delivery date' - 'Actual
delivery date')) / Number of projects
Invoice Accuracy Rate The percentage of faultless invoices. Faultless Invoices / Total Invoices * 100
Market Share A company revenue divided by all the revenue of competitors within the same market. Companies Revenue / Total
Category Revenue * 100
Market Share Index The regional market share expressed as a percentage of the national market share. Regional market share /
National market share *100
Number of Service Locations Number of service locations
Percent Revenue Growth – Existing The revenues growth generated by existing customer in the period compared with the previous period expressed
Customers as a percentage. Revenues generated by existing customer in the period - Revenues generated by existing
customer in previous period) / Revenues generated by existing customer in previous period * 100
Percentage of Breakdowns The number of breakdowns (e.g. computer companies) expressed as a percentage of total installations.
Breakdowns / Total Installations * 100
Percentage of Customer Complaints Number of customer complaints expressed as a percentage of total customers in a period. The average number of
customer is the number at the end of the period plus the number at the beginning divided by two. Number of
customer complaints / Average number of customers * 100
Percentage of Customers getting served via The percentage of customers that get served via internet Protocol (email,...) in comparison to all the customers
Internet Protocol services (requests) done by a company. Customers that get served via Internet Protocol / Total customers get
served * 100
Percentage of Escalations The number of escalations expressed as a percentage of total installations. Escalations / Total Installations * 100

Percentage of Inquiries taken over the Percentage of inquiries taken over the Internet. # of inquiries taken over the Internet / total # of inquiries * 100
Internet
Percentage of Planned Maintenance Work The planned maintenance work expressed as a percentage of total maintenance work. (Hours of planned
maintenance work / Total hours of maintenance) * 100
Percentage of Service Requests The number of service requests from customers expressed as a percentage of total customers in a period. The
average number of customer is the number at the end of the period plus the number at the beginning divided by
two. Number of Service Requests / Average number of customers * 100
Percentage of Warranty Requests The number of warranty requests expressed as a percentage of total customers in a period. The average number
of customer is the number at the end of the period plus the number at the beginning divided by two. Number of
warranty requests / Average number of customers * 100
Quarantine time Setting aside of items from availability for use or sale until all required quality tests have been performed and
conformance certified. Time for all required quality tests and conformance certified
Response Time: Field Service The time a customer has to wait after he has sent a service request. Wait Time / Total Service Requests
Returns Returns and their value in proportion to all orders. Net value of returns / Net value of incoming orders * 100
Sales vs Year Ago Compare Sales vs. Sales a year ago expressed as a percentage. Sales this year / Sales previous year * 100

Schedule achievement The percentage of time that a plant achieves its production schedule. This calculation is based on the number of
scheduled end items or total volume for a specific period. Note: overships do not make up for undership. Number of
achievements / Number of plans * 100
Selling Price Calculation Time Time required to provide the customer with the price information. Time between inquiry intake and availability of
price information
Service Costs Revenue Ratio Revenue created from service work vs. Costs. (Service Costs / Service Revenue) * 100%
Total Source Lead Time Total source lead time is the cumulative lead time required to source 95% of the dollar value of materials from
internal and external suppliers
Warranty costs Warranty costs include materials, labor and problem diagnosis for product defects. Costs for materials, labor and
problem diagnosis for product defects
Warranty costs as a % of CoGS Warranty costs include materials, labor and problem diagnosis for product defects. Expressed as a % of Cost of
Goods Sold (CoGS). ( Costs for Materials, labor and problem diagnosis for product defects ) / CoGS * 100

Win/lost Ratio The percentage of contracts done in comparison to all inquiries. It is similar to all customers divided by all prospects
in a certain period. Win / total amount of inquiries

[Link] page 25 of 33
Key Performance Indicator Repository
Business Process Methodology
Research & Development

This list is the outcome of a solution map created out of all R&D-relevant processes of all solution maps.
For Engineer-to-order processes have also been set in scope, some performance indicators related to order management are also contained.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer

Performance Indicator Definition

Approved Change Orders per total ECO Change orders approved by client as percentage of total requested engineer change orders (ECOs). Approved
change orders/total requested change orders * 100
Average Development Cost per New Product Average development cost divided by the number of new products. Average development cost / Number of new
products
Average Project Revenue Total revenue of projects per total projects contracted. Total Project Revenue / Number of Projects
Concept Approval Cycle Time Time required to approve the concepts of a new product and start the development process. Time to approve the
concepts and start development process
Contract Negotiation Time Days (as persondays) required to negotiate contract with clients within a period. Total number of days/Number of
contracts
Contract, Program & Channel Mngt. Costs as Includes all costs for activities related to contract negotiation, monitoring progress and reporting against the
a % of Order Mngt. Costs customer's contract, including administration of performance or warranty related issues. Expressed as a % of Order
Management Costs. ( Activities related to contract negotiation costs + monitoring progress costs + reporting against
the customer's contract costs ) / Order Management Costs * 100
Cost Estimate Accuracy % Difference in original cost estimate vs. final actuals (taking into account that the same scope is evaluated).
Percentage difference of cost estimate to final cost. (Actual Cost - Initial Cost Estimate) / Actual Cost * 100

Delivery Date Accuracy Difference between planned delivery date and actual delivery date. (Sum of ('Planned delivery date' - 'Actual
delivery date')) / Number of projects
Detailed Schedule Creation Time Number of hours required to create a detailed project schedule. Number of hours required to create detailed project
schedule
Engineer Change Order (ECO) costs Costs incurred through revisions to a blueprint or design released by engineering to modify or correct a part. The
request for the change can be from a customer or from production quality control or another department. Engineer
Change Order (ECO) Costs
Engineer Change Order (ECO) Costs as a % Engineer Change Order (ECO) are costs incurred from revisions to a blueprint or design released by engineering to
of R&D Costs modify or correct a part. The request for the change can be from a customer or from production quality control or
another department. Expressed as a % of Research&Development (R&D) Costs. Engineer Change Order (ECO)
Costs / R&D Costs * 100
Engineering Change Order Time Number of days between receipt of engineering change order (ECO) and delivery of final redesigned design
drawings. Time needed to design an engineering change
Lead times: product development Time from concept to product launch. Time difference between 'Concept' - 'Product launch'
Number of ECOs Total number of revisions to a blueprint or design released by engineering to modify or correct a part, engineering
change orders (ECO). The request for the change can be from a customer or from production quality control or
another department. Total number of engineering change orders per year
Number of Prototypes Built Number of prototypes built before approval
Percentage of External Project Initiations The percentage of new projects initiated by a customer vs. Internally. # of inquiries taken over the Internet / total #
of inquiries * 100
Percentage of New Components New components' (never used before and not present in any company database) vs. 'all components' used in a
design. New components / Total number of components * 100
Percentage of Planned Maintenance Work The planned maintenance work expressed as a percentage of total maintenance work. (Hours of planned
maintenance work / Total hours of maintenance) * 100
Project Profit Margin Contribution Margin of projects. [Project Revenue - Project Costs] / Project Revenue * 100
Project Setup Time Average time spent on doing the project setup, creating the project plan and budget. Time between: Quotation
approval - Project kickoff
Project Setup Time Average time spent on doing the project setup, creating the project plan and budget. Time between: Quotation
approval - Project kickoff
R&D costs as a % of Revenue The R&D costs expressed as a percentage of revenue. R&D Costs / Revenue * 100
R&D costs as a % of Total Costs The R&D costs expressed as a percentage of Total Costs. R&D Costs / Total Costs * 100
Research & Development Costs All costs involved in the R&D process
Time to Market The time between the start of a project, development or new product to the time it appears in the market. Number
of weeks between initial idea and delivery of 1st series
Validation Time for Product Configuration Time spent validating configuration of products per order. Time spent validating configuration of products per order

[Link] page 26 of 33
Key Performance Indicator Repository
Business Process Methodology
Business Support Processes

This list is the outcome of a solution map created out of all business support processes of all solution maps, completed by the performance indicator overview files (.ppt) also provided
by the Solution Map Composer.
These business support processes include human ressource management, fixed asset managment and treasury. Although IT-Support processes are not considered by the Solution
Map Composer, performance indicators regarding IT-Support habe been added. For completion, please consider IT-related issues also in the "technology"-view of all main processes.
Regarding the treasury processes, "standard" treasury processes have been considered as well as Core Banking Processes of the SAP Banking Solution Map and Cash Management
processes of the SAP Public Sector Solution Map.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer
If for a considered support process aspects of other main processes predominate, please refer to the adequate metrics on the other sheets.

Support process Performance Indicator Definition

Asset Cost Performance Index Budgeted cost of work performed divided by actual cost of work scheduled. Budget cost of work performed / Actual
Management (CPI) cost of work scheduled * 100
Asset Percentage of The number of breakdowns (e.g. computer companies) expressed as a percentage of total installations.
Management Breakdowns Breakdowns / Total Installations * 100
Asset Percentage of Customer Number of customer complaints expressed as a percentage of total customers in a period. The average number of
Management Complaints customer is the number at the end of the period plus the number at the beginning divided by two. Number of
customer complaints / Average number of customers * 100
Asset Percentage of Planned The planned maintenance work expressed as a percentage of total maintenance work. (Hours of planned
Management Maintenance Work maintenance work / Total hours of maintenance) * 100
Asset Percentage of Service The number of service requests from customers expressed as a percentage of total customers in a period. The
Management Requests average number of customer is the number at the end of the period plus the number at the beginning divided by
two. Number of Service Requests / Average number of customers * 100
Asset Scheduled performance Budget cost of work performed divided by Budget cost of work scheduled. Budget cost of work performed / Budget
Management index (SPI) cost of work scheduled * 100

HR Management Administration Costs Administration costs reductions by automating transactions (reduction in redundant data entry)
Reductions
HR Management Applicant Hiring Rate This ratio states what percent of the external applicants are accepted
HR Management Applicants‘ Average Age This figure specifies the average age of the applicants. Please note: This measure might be illegal or not politically
correct in some countries. Applicants' Age in years/Number of applicants
HR Management Average Bonus per This ratio shows the average bonus payment per employee. Bonus includes all payment additional (not in the
Employee contract) to the usual salary. Bonus usually is depentend to the performance of the company or employee. Total
Bonus paid / Headcount
HR Management Average Headcount The headcount in full-time equivalents leveraged over the four quarters of a year. (Sum Of The Headcount For The
Four Quarters Of The Previous Year) /4
HR Management Average Headcount FTE The headcount in full-time equivalents leveraged over the four quarters of a year. (Sum Of Headcount FTE For The
Four Quarters Of The Previous Year) / 4
HR Management Average Length of The average of the length of service for total employees. Please note: This measure might be illegal or not
Service politically correct in some countries. (Sum ('Actual Date' - 'Entry Date of each Employee')) / Headcount
HR Management Average Time Lost Rate This ratio compares the total number of workdays (irrespective of the number of hours that would normally have
been worked each day) that were lost during the year as a result of deaths, injuries and diseases to the number of
new lost time deaths, injuries and diseases, recorded as occurring during the year. This ratio provides measures of
the frequency and severity of occurrences experienced in workplaces over time. It is important to refer to the
definitions of the injury/diseases occurrences in a country's work safetyE79 guidelines. Days Lost/Occurrences

HR Management Career Path Ratio The Career Path Ratio relates the number of promotions to the number of transfers within the organization. This will
be an increasingly important measure as organizations endeavor to provide satisfying careers for staff in
increasingly "flat" organizational structures. In a traditional hierarchical organizational structure, one would expect
the number of promotions to be greater than the number of transfers (i.e. a high Career Path Ratio). In an
organization with a flatter structure, one would expect a lower Career Path Ratio. It has been suggested that the
ideal Career Path Ratio is a ratio of 1:1 or less, e.g. 1:0.5. The ratio may be applied to female or male. Please note:
This measure (female/male) might be illegal or not politically correct in some countries. Promotions/Transfers

HR Management Cash Flow per FTE The Cash Flow per FTE is equal to Cash Flow divided by Headcount Fulltime Equivalent Employees. It provides
the dollar income per employee and is a macro measure of employee productivity. Cash Flow per FTE is used as a
basic financial indicator and is useful to determine and set company growth targets. Cash Flow / Headcount FTE

HR Management Compensation And This ratio is total compensation and rehabilitative Occupational Health And Safety (OH&S) costs divided by the
Rehabilitative number of FTE employees. It shows the liability costs resulting from work-related incidents and disease. The
Occupational Health And compensation and rehabilitative costs are defined as workers' compensation premiums, the actual cost for self-
Safety Factor insurers, cost of rehabilitation programs, and the time spent by employees on these programs. Most organizations
aim to keep their compensation and rehabilitative costs as low as possible, i.e. the 25th percentile or below.
Compensation and Rehabilitative OH&S Costs/Headcount FTE

HR Management Cross training The providing of training or experience in several different areas, e.g., training an employee on several machines
rather than one. Cross-traning provides backup workers in case the primary operator is unavailable. Employee with
skills in several ares / Headcount * 100
HR Management Disabled People This measure compares the number of disabled employees to the total number of employees. Please note: This
Percentage measure might be illegal or not politically correct in some countries. (Disabled Employees/Headcount)*100

HR Management Employee Satisfaction This ratio calculates the satisfaction of the employees. This figure has to be defined individually and compared over
Index time
HR Management Employee´s Average Age This ratio is equal to the average age of all employees. Please note: This measure might be illegal or not politically
correct in some countries. Total Employee Age In Years / Headcount
HR Management Employees Coming Back This ratio compares the number of employees coming back from abroad earlier than initially intended to the total
From Abroad Earlier number of employees sent abroad. (Employees Coming Back From Abroad Earlier Than Intended/Total Number Of
Than Intended Rate Employees Sent Abroad)*100

HR Management Employment Rate Of This ratio states how many trainees are employed after graduation. It is a measure of the expenditures to educate
Trainees trainees within the company. (Number Of Employed Trainees/Number Of Graduated Trainees)*100
HR Management Entry Rate The number of entries in relation to the average headcount for the previous year (i.e. last complete year). (Number
Of Entries /Average Headcount)* 100

[Link] page 27 of 33
Key Performance Indicator Repository
Business Process Methodology
Business Support Processes

This list is the outcome of a solution map created out of all business support processes of all solution maps, completed by the performance indicator overview files (.ppt) also provided
by the Solution Map Composer.
These business support processes include human ressource management, fixed asset managment and treasury. Although IT-Support processes are not considered by the Solution
Map Composer, performance indicators regarding IT-Support habe been added. For completion, please consider IT-related issues also in the "technology"-view of all main processes.
Regarding the treasury processes, "standard" treasury processes have been considered as well as Core Banking Processes of the SAP Banking Solution Map and Cash Management
processes of the SAP Public Sector Solution Map.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer
If for a considered support process aspects of other main processes predominate, please refer to the adequate metrics on the other sheets.

Support process Performance Indicator Definition

HR Management Expense Per Full-Time The Expense Factor is equal to Total Operating Expense (all operating expenses!) divided by total FTEs. It
Equivalent Employee represents the total organizational expense per employee. All organizations aim to reduce operating costs so that
breakeven points are reduced. Expense factor is as industry-E63driven as Revenue Factor and therefore
comparisons should focus primarily within industry sectors. (Expenses/Headcount FTE)*100
HR Management External Recruitment This ratio is computed by dividing the number of recruits hired externally by the average employee headcount. It
Rate indicates the percentage of the organization's workforce that has been recruited during the reporting period. A high
External Rate may indicate organizational growth, but it can also highlight weaknesses in retention management,
successor planning and employee development. This is especially true for Managerial & Professional employees.
The ratio may be applied to managerial, professional, operative, and clerical employees or female and male.
Please note: This measure (female/male) might be illegal or not politically correct in some countries. (External
Recruits/Average Headcount)*100

HR Management Frequency Rate (Per 1 This ratio compares the number of new lost time deaths, injuries and diseases to every million hours worked during
Million Working hours) the year. This ratio provides measures of the frequency and severity of occurrences experienced in workplaces
over time. It is important to refer to the definitions of the injury/diseases occurrences in a country's work safety
guidelines. (Occurrences/Hours Worked)*1000000
HR Management Fringe Benefits To Basic This ratio compares the Fringe Benefits to the Basic Salary of the Employees. The Fringe Benefits include the legal
Salary Ratio benefits, the agreed benefits with the unions, and the voluntary benefits for the employees. (Fringe Benefits/Basic
Salary)*100
HR Management Graduated Headcount This ratio is computed by dividing the graduated headcount by total headcount. It measures the percentage of
skilled workers in the enterprise. Graduated has to be defined by the enterprise. It can be Bachelor's, Masters,
MBA, PhD or any other country specific educational standards. The ratio may be applied to managerial,
professional, operative, and clerical employees or may be applied to female or male. Please note: This measure
might be illegal or not politically correct in some countries. (Graduated Headcount / Headcount) * 100

HR Management Headcount The number of people employed directly by the organization during the time period. Part-time employees are
counted individually, regardless of hours worked. Casual employees, contract staff or temporary staff whose
services are paid directly to an agency are not included. Also employees on unpaid leave should not be included.
Number of people employed
HR Management Headcount Full Time/Part The ratio compares the number of full-time employees to the number of part-time employees. (Number Of Full Time
Time Staff Ratio Employees/Number Of Part-Time Employees)*100

HR Management Headcount Full Time/Part The ratio compares the number of full-time employees to the number of part-time employees. (Number Of Full Time
Time Staff Ratio Employees/Number Of Part-Time Employees)*100

HR Management Headcount Full-Time The headcount as a full-time equivalent. This is the number of effective full-time equivalent employees for a time
Equivalent period. This is similar to headcount, except that part-time and casual employees are converted to full-time
equivalents. To calculate the full-time equivalent it is necessary to know the standard number of workhours per
employee (not the actual work hour!). The standard number of workhours comes out of the enterprise agreements
or the award coverage. Contract staff or temporary staff whose services are paid directly to an agency are not
included. Also employees on unpaid leave for this period should not be included. The Headcount As A Full Time
Equivalent

HR Management Hired To Needed This ratio compares the number of hired employees to the number of needed employees. It is used to measure the
Personnel Ratio success of the recruitment activities. Ideally, the ratio is 100%, i.e. all open positions could be filled. This ratio may
be applied to managerial, professional, operational, and clerical employees. (Hired Employees/Needed Employees
(FTEs))*100
HR Management HR Expense As A This ratio is Total HR Department Operating Expense divided by Total Operating Expense of the organization. It
Percent Of Total measures HR costs as a percentage of Total Organizational Expense. On a case by case basis, HR needs to
Operating Expenses continually show management how it adds value to the organization. This HR Expense Factor needs to be coupled
with results showing the contribution HR has made to the organization's effectiveness and achievement of overall
strategies. (HR Expense/Total Expense)*100
HR Management HR Expense Per This ratio is Total HR Expense divided by the number of FTEs in the organization. This complements the HR
Employee FTE staffing ratio and can give a more accurate comparative picture as HR Expense Per Employee includes
outsourcing/contractors' expenses that are usually not captured in the HR staffing ratio results. HR Expense/Total
Headcount FTE
HR Management HR service cost per The cost for HR service per employee per year. Average cost per HR transaction * Average number of transactions
employee
HR Management Illness Rate This ratio is equal to Illness-related absence in hours multiplied by the planned working hours. It may be applied to
managerial, professional, operative, and clerical employees. (Illness Hours/Planned Hours)*100
HR Management Incidence Rate (Per 100 This ratio compares the number of new lost time due to deaths, injuries and diseases for every 100 employees.
FTEs) This ratio provides measures of the frequency and severity of occurrences experienced in workplaces over time. It
is important to refer to the definitions of the injury/diseases occurrences in a country's work safety guidelines.
(Occurrences/Headcount FTE)*100
HR Management Indirect to direct labor Ratio of total number of employees required to support production in general without being related to a specific
headcount ratio product, indirect labor, to the total number of employees that is specifically applied to the product being
manufactured or used in the performance of the service, direct labor. Indirect labor / direct labor * 100
HR Management Industrial Incident Costs This ratio shows the costs per industrial incident. It includes the working time of the injured person, their co-workers
and superior, the transportation to the doctor, medications, and the subsequent costs for a person missing from the
work process. This ratio may be calculated for managerial, professional, operative, and clerical employees.

[Link] page 28 of 33
Key Performance Indicator Repository
Business Process Methodology
Business Support Processes

This list is the outcome of a solution map created out of all business support processes of all solution maps, completed by the performance indicator overview files (.ppt) also provided
by the Solution Map Composer.
These business support processes include human ressource management, fixed asset managment and treasury. Although IT-Support processes are not considered by the Solution
Map Composer, performance indicators regarding IT-Support habe been added. For completion, please consider IT-related issues also in the "technology"-view of all main processes.
Regarding the treasury processes, "standard" treasury processes have been considered as well as Core Banking Processes of the SAP Banking Solution Map and Cash Management
processes of the SAP Public Sector Solution Map.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer
If for a considered support process aspects of other main processes predominate, please refer to the adequate metrics on the other sheets.

Support process Performance Indicator Definition

HR Management Internal Recruitment Rate This ratio is computed by dividing the number of internal appointments taken up by the average employee
headcount. It indicates the percentage of the organization's workforce that has been recruited during the reporting
period. The Internal Recruitment Rate provides a measure of movement within the organization's workforce. It may
be applied to managerial, professional, operative, and clerical employees or female and male. Please note: This
measure (female/male) might be illegal or not politically correct in some countries. (Internal Recruits/Average
Headcount)*100

HR Management Leave days per planned This ratio compares the number of leave days to the number of planned working days. (Leave Days/Planned
days Working Days)*100
HR Management Lost Time Incident Ratio This measures compares the working hours lost due to incidents to the total working hours. (Working Hours Lost To
Incidents/Total Working Hours)*100
HR Management Managerial & Managerial & Professional in full-time equivalents not doing operational work, but are responsible for planning,
Professional Headcount controlling, budgeting, administration
FTE
HR Management Net Entry Rate This ratio of External Recruits divided by Total Leavings in the period shows the number of terminating employees
who were replaced by external recruits, and allows an organization to assess the level of expansion or contraction
of its workforce, and determine the success of labor growth or downsizing strategies. The ratio may be applied to
managerial, professional, operative, and clerical employees. (External Recruits/Total Leavings)*100

HR Management Net Personnel This ratio ist the number of required personnel minus the available personnel plus the number of employees leaving
Requirements the company minus the number of New Hires. It is a measure of the human resource over- or undercapacity. This
ratio may be applied to managerial, professional, operational, and clerical employees. Number Of Required
Personnel - Available Personnel + Employees Leaving The Company - New Hires
HR Management Net Value Added Ratio This ratio is Revenue minus Expense, divided by Total Salary. It measures profit generated per employee, after
taking Salary into account. It is also known as Salary Profit Factor. (Net Profit/Salary)*100
HR Management Operative Headcount FTE Operative Headcount in full-time equivalents are: trade persons, sales, service, clerks, plant & machine operators,
labours and related worker. Operative Headcount FTE
HR Management Overtime As A Percent Of This ratio is calculated by Overtime Cost divided by Total Salary. It measures overtime costs as a percent of total
Total Salary Salary. This figure should be considered in light of the organization's strategies during the reporting period. It can
reflect an unexpected increase in demand or alternatives reveal the hidden cost of a restructure. Human Resource
practitioners need to consider this in their strategic and workforce planning to ensure effectiveness of the
organization's resources. (Overtime Cost/Salary)*100
HR Management Overtime Rate This ratio compares an employee's overtime in comparison to the planned working time. (Overtime hours/Planned
hours)*100
HR Management Positions FTE The Positions FTE shows how many percentage of a planned positions in full time equivalent are occupied, vacant
or unoccupied positions FTE. Positions FTE (occupied, vacant, unoccupied)
HR Management Preventative This ratio is equal to the cost of preventative occupational health and safety, divided by the number of full-time
Occupational Health And equivalent (FTE) employees. It measures the cost of the organization's proactive health and safety strategy. These
Safety Investment Factor preventive occupational health and safety costs relate to expenses incurred with the provision of facilities and
services for the prevention of work related death, injury or trauma. Such facilities and services can include on-site
fitness programs, counseling facilities and ergonomic surveys. Expenditure on preventative occupational health and
safety can be justified if your organization is below the industry median for Compensation and Rehabilitation OH&S
Cost Factor, and frequency and severity measures. Preventative Occupational Health And Safety
Investment/Headcount FTE

HR Management Probation Leaving Rate This measure compares the number of cancelled employment contracts during probation time to the number of
hires in the period. It indicates the efficiency in the recruitment and training activities. This ratio may be applied to
managerial, professional, operational, and clerical employees. (# Of Cancelled Employment Contracts During
Probation Time/Number Of Hires)*100
HR Management Productivity Rate The actual (productive) working times of an employee in ratio to the planned working times. (Productive
Hours/Planned Hours)*100
HR Management Profit Per Full-Time This is Revenue minus Expense, divided by total FTEs. The Profit Factor represents an average pre-tax profit per
Equivalent Employee employee which is another way of viewing employee productivity. It indicates how much profit an organization
makes from an average employee. This measure is largely industry driven and thus comparisons should be within a
specific industry. Net Profit/Headcount FTE
HR Management Qualifications per The number of qualifications per employee. A qualification is definied by the company. It can be speaking foreign
Employee lanuages, computer knowledge. Number of qualifications per Employee
HR Management Ratio of Employees FTE This ratio is the Number of FTE employees in the organization, divided by HR managerial and professional FTEs. It
HR Management Per HR
Ratio of Employees FTE identifies
This ratio the level
is the of professional
Number capability in
of FTE employees and
thespecialist skills divided
organization, within your
by HRHROperative
department. It provides
FTEs. a
It measures the
Managerial/Professional
Per HR Operative Staff breakdown
ratio of totalof HR Staffing
employees to Factor, enabling
HR operative organizations
employees. to determine
It provides not only
a breakdown ofstaffing ratiosFactor,
HR Staffing but skill level
enabling
Staff Member
Member distribution in the
organizations Human Resources
to determine function.
not only staffing Total
ratios Headcount
but FTE/ HR Managerial
skill level distribution in the Human& Professional
Resources Headcount
function. Most
FTE)*100
organizations should generally aim to have a low number of HR operative employees and thus keep this result
high. The reason for this is that a high number of HR operative employees (low ratio) are often an indication of a
processing-E20based function that is not effectively automated and/or streamlined. This does not necessarily add
value to the organization's strategic objectives. (Total Headcount FTE/HR Operative Headcount FTE)*100

HR Management Ratio of Employees FTE This ratio is the Number Of Full-Time-Equivalent (FTE) Employees in the organization, divided by the number of
Per HR Staff Member FTEs in the HR function. The HR Staffing Factor may be assessed both within the industry and across industries.
After identifying the percentile position within the same industry, it will be useful to also compare the results across
industriesE18E22 in assessing the value added of the HR function. (Total Headcount FTE/HR Headcount
FTE)*100

[Link] page 29 of 33
Key Performance Indicator Repository
Business Process Methodology
Business Support Processes

This list is the outcome of a solution map created out of all business support processes of all solution maps, completed by the performance indicator overview files (.ppt) also provided
by the Solution Map Composer.
These business support processes include human ressource management, fixed asset managment and treasury. Although IT-Support processes are not considered by the Solution
Map Composer, performance indicators regarding IT-Support habe been added. For completion, please consider IT-related issues also in the "technology"-view of all main processes.
Regarding the treasury processes, "standard" treasury processes have been considered as well as Core Banking Processes of the SAP Banking Solution Map and Cash Management
processes of the SAP Public Sector Solution Map.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer
If for a considered support process aspects of other main processes predominate, please refer to the adequate metrics on the other sheets.

Support process Performance Indicator Definition

HR Management Ratio of HR Operative To The factor is computed by dividing Total HR Operative FTEs by HR Managerial And Professional FTEs. It provides
HR Managerial & the ratio of HR operative to HR managerial & professional staff. It is also referred to as the HR professionalism
Professional Employees ratio. Studies have indicated that HR departments with a larger proportion of managerial & professional employees
FTE have a direct relationship to positive trends in other HR performance indicators. Human Resource managers need
to consider this within their HR department's structure. (HR Operative Headcount FTE/HR Managerial &
Professional Headcount FTE)*100

HR Management Ratio of Male To Female This is ratio of male to female employees (FTE). This comparative measure allows you to check the gender
Employees FTE balance of your workforce against other organizations and/or industries. It may be applied to managerial,
professional, operative, and clerical employees. Please note: This measure (female/male) might be illegal or not
politically correct in some countries. (Male Headcount FTE/Female Headcount FTE)*100
HR Management Ratio of Operative & This ratio is equal to Total Operative & Professional Employees divided by Total Managerial Employees.
Professional To Organizations who have a low result have a danger of having a management structure which is too heavy. This
Managerial Employees danger is twofold: a higher cost structure; and a loss of responsiveness in making decisions. (Operative Headcount
FTE FTE/Managerial & Professional Headcount FTE)*100
HR Management Ratio of Operative To This ratio is computed by dividing Total Operative FTEs by Total Managerial And Professional FTEs. It provides a
Managerial & ratio of operative to managerial & professional employees and gives a broad picture of your organization's structure
Professional Employees and profile. It is best compared within your industry, or like industries, as each sector will vary depending on their
FTE business and the nature of that industry. (Operative Headcount FTE/Managerial & Professional Headcount
FTE)*100
HR Management Recruitment Cost Factor The ratio of total recruitment costs divided by the total number of employees recruited during the year measures the
cost of recruitment and selection per recruited employee. If your organization's Recruitment Cost Factor is higher
than appropriate norms, you should consider the return on the higher investment in terms of factors such as quality
of the candidates, and efficiency of placement. If such results are not evident, you may wish to consider ways to
reduce the costs. On the other hand, if your costs are lower than appropriate norms, you may need to examine
your recruitment and selection strategies. This could be particularly relevant if a major external recruitment program
is planned. Total Recruitment Costs/Total Employees Recruited

HR Management Recruitment Source This ratio compares the number of internal recruits to the number of external recruits to indicate the balance of
Ratio internal to external recruits. The desired result for an organization is dependent on its strategies. Organizations can
also use this measure to determine the strategies of other organizations within their industry. The ratio may be
applied to managerial, professional, operative, and clerical employees. (Total Internal Recruits/Total External
Recruits)*100
HR Management Salary As A Percent Of This ratio is cost of Total Salary divided by Total Operating Expense. It is a measure which needs to be interpreted
Expense with great care since any changes to the operating expenses will naturally change the results. It is therefore
important to interpret this factor in relation to trends over time within an industry. (Salary/Expense)*100

HR Management Salary Per Employee FTE This ratio is computed by dividing the Total Employee Salary by the Total Employees (FTE). It is a measure to plan
and control the salary. The ratio may be applied to managerial, professional, operative, and clerical employees.
Total Employee Salary/Total Headcount FTE
HR Management Salary Per Hour This ratio is computed by dividing the Total Employee Salary by the Total Working Hours. It is used to analyze and
control the salary. The ratio may be applied to managerial, professional, operative, and clerical employees.
Salary/Total Working Hours
HR Management Savings from use of Savings from use of a Employee Self Service (ESS) system (lower transaction volume through HR). All costs
Employee Self Service reduction according to the use of an ESS system
HR Management Sending Abroad Rate This ratio compares the number of employees sent abroad to the total employees. It is a measure to plan and
(Expatriate Rate) control international placements. (Number Of Employees Sent Abroad/Total Employees)*100
HR Management Span Of Control The Span Of Control indicates the number of co-workers per superior employee. A high span of control can be an
indicator of overwork of the superior, whereas a low span of control can be a sign of too much overhead. This ratio
may be applied to all organizational units. Number Of CoWorkers Per Superior
HR Management Take Up Rate For Job This ratio is computed by dividing the total number of external recruits by the total number of offers extended to
Offers Rate external candidates. It indicates the ratio of job offers actually accepted by external candidates. A lower than
industry median External Acceptance Rate can reveal a number of weaknesses, both in management of the HR
department, and at the organizational level. The rate may be applied to managerial, professional, operative, and
clerical employees. (External Recruits/External Offers)*100
HR Management Time To Fill This ratio is total calendar days taken to fill all approved requisitions divided by total recruits. It indicates the mean
number of calendar days taken to fill each position from time of notification of vacancy to the time the successful
applicant accepts the position. The measure plays an important role in the perceived efficiency of the HR
department. A higher than average Time to Fill, together with a higher than average Recruitment Cost Factor, may
point to some serious weaknesses and inefficiencies in the recruiting process. The rate may be applied to
managerial, professional, operative, and clerical employees. Total Days To Fill/Total Recruits

HR Management Time To Start This ratio is computed by dividing total calendar days take for new employees to start by total number of
requisitions filled. It indicates the mean number of calendar days taken to fill each position from time of notification
of vacancy to the successful candidate's entry on duty. Time to Start is important from a line manager's
perspective, as it indicates when the person can actually begin contributing to his or her department's productivity.
The measure enables line managers to more efficiently plan work organization, in the light of length of time that a
position will be vacant. Therefore many line managers view Time to Start as a key recruitment performance
indicator. It may be applied to managerial, professional, operative, and clerical employees. Total Time To
Start/Total Recruits

HR Management Time To Start External This ratio is equal to the total calendar days taken for externally recruited employees to start a new position, divided
by the number of external recruits. It may be applied to managerial, professional, operative, and clerical employees.
Time To Start (External)/External Recruits

[Link] page 30 of 33
Key Performance Indicator Repository
Business Process Methodology
Business Support Processes

This list is the outcome of a solution map created out of all business support processes of all solution maps, completed by the performance indicator overview files (.ppt) also provided
by the Solution Map Composer.
These business support processes include human ressource management, fixed asset managment and treasury. Although IT-Support processes are not considered by the Solution
Map Composer, performance indicators regarding IT-Support habe been added. For completion, please consider IT-related issues also in the "technology"-view of all main processes.
Regarding the treasury processes, "standard" treasury processes have been considered as well as Core Banking Processes of the SAP Banking Solution Map and Cash Management
processes of the SAP Public Sector Solution Map.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer
If for a considered support process aspects of other main processes predominate, please refer to the adequate metrics on the other sheets.

Support process Performance Indicator Definition

HR Management Time To Start Internal This ratio is equal to the total calendar days taken for internally-recruited employees to start a new position, divided
by the number of internal recruits. It may be applied to managerial, professional, operative, and clerical employees.
Time To Start (Internal)/Internal Recruits
HR Management Total Days Absence This ratio is computed by dividing the total number of workdays employees have been absent with unscheduled
Industrial Disputes leave due to industrial disputes by total FTEs, times total number of workdays in the period. It indicates the amount
of time lost for employees due to industrial disputes in an organization. It is a good direct measure of the industrial
climate within the organization compared to the industry. By comparing across industries, organizations can assess
the potential to improve industrial relations practice by applying best practice principles. The ratio may be applied to
managerial, professional, operative, and clerical employees. (Total Days Absent Industrial Disputes)/Total
Workdays)*100

HR Management Total Leavings The number of people who have left the enterprise
HR Management Total Recruitment Rate This ratio reflects the internal plus the external recruitment rate. A high ratio may indicate organizational [Link]
ratio may be applied to managerial, professional, operative, and clerical employees or female and male. Please
note: This measure (female/male) might be illegal or not politically correct in some countries. External Recruitment
Rate + Internal Recruitment Rate
HR Management Trainee Rate This ratio compares the number of trainees to the number of total employees. In order to be a useful measure in
human resource planning, the following factors also have to be taken into account: the specific job, age, turnover,
personnel requirements, and the number of trainees in the following years. (Number Of Trainees/Headcount)*100

HR Management Training Hours Per This ratio is computed by dividing total hours of training undertaken within a year by total number of full-time
Employee FTE equivalent (FTE) employees. It is a simple indication of the amount of training being provided to all employees. It
should be used in combination with Training Investment per Employee and Training Salary Factor benchmarks.
The ratio may be applied to managerial, professional, operative, and clerical employees. (Total Training
Hours/Total Headcount FTE)*100
HR Management Training Investment Per This ratio compares the total training investment to the number of full-time equivalent (FTE) employees. It
Employee FTE represents the per-employee cost of training within the organization. It is a macro-level indicator of an
organization's commitment to, or investment in training. The ratio may be applied to managerial, professional,
operative, and clerical employees. Total Training Investment/Headcount FTE
HR Management Training Salary Factor This ratio is computed by dividing total training investment by total Salary costs for all employees. It measures a
component of investment in employees. It is important to measure this level if investment and assess its
contribution to organizational effectiveness. The ratio may be applied to managerial, professional, operative, and
clerical employees. (Total Training Investment/Total Salary)*100
HR Management Transferral Requests This ratio is equal to the number of transferral requests after a short period of service within the company. It is an
(After A Short Period Of indicator of employee satisfaction and of quality of the recruitment process. It may be applied over time to
Service) managerial, professional, operational, and clerical employees. Number Of Transferral Requests After A Short
Period Of Service
HR Management Turnover Costs The Turnover Costs are a sum of the release costs (including non productive time by the leaving employee and
administration costs for the leave) and recruitment and training costs. Release Costs + Recruitment And Training
Costs
HR Management Turnover Involuntary This ratio is computed by dividing the number of total employees who left the organization at the organization's
Rate direction by the average total employee headcount. It provides the percent of employees terminated at the
organization's direction. This measure often reflects the degree of organizational restructure and downsizing. The
ratio may be applied to managerial, professional, operative, and clerical employees. (Total Involuntary
Leavings/Average Headcount)*100
HR Management Turnover Rate This ratio is calculated as the number of employees who left the organization for any reason divided by the average
employee headcount. It measures the percentage of employees who were separated from the organization, either
voluntarily or involuntarily during the period. It represents the total employee turnover within the organization. The
ratio may be applied to managerial, professional, operative, and clerical employees (female and male). Please
note: This measure (female/male) might be illegal or not politically correct in some countries. (Total Leavings /
Average Headcount) * 100

HR Management Turnover Voluntary Rate This ratio is computed by dividing the number of total employees who left the organization of their own accord by
the average total employee headcount. It measures the percentage of employees who left the organization by
choice, therefore outside the employer's control. This is an important measure to monitor as it indicates skill loss to
the organization. The ratio may be applied to managerial, professional, operative, and clerical employees. It can
also be divided up by length of service or female and male. Please note: This measure (female/male) might be
illegal or not politically correct in some countries. (Total Voluntary Leaving Rate/Average Headcount)*100

HR Management Unscheduled Absence This ratio is equal to total number of days employees were absent, divided by FTEs. It indicates the average
Per Employee FTE Sick amount of lost time (in days) the organization is incurring due to employees being absent. This includes lost time for
Leave sick leave, workers' compensation, industrial disputes and other miscellaneous reasons. If the result is 10, this can
be interpreted as reporting that, on average, each employee took 10 days in the period due to unscheduled
absence. The ratio may be applied to managerial, professional, operative, and clerical employees. Total Days
Absent/Headcount FTE

HR Management Unscheduled Absence This ratio is calculated as the total number of workdays employees were absent with unscheduled leave due to
Workers' Compensation workers' compensation leave, divided by total FTEs times total number of workdays in the period (=Total
Workdays). It indicates how much time the organization is losing to employee's absenteeism due to workers'
compensation. The measure is designed to provide organizations with a comparative assessment of their
occupational health and safety compared to other organizations within their industry and then across industries. It
may be applied to managerial, professional, operative, and clerical employees. (Total Days Absent due to Workers'
Compensation / Total Workdays) * 100

[Link] page 31 of 33
Key Performance Indicator Repository
Business Process Methodology
Business Support Processes

This list is the outcome of a solution map created out of all business support processes of all solution maps, completed by the performance indicator overview files (.ppt) also provided
by the Solution Map Composer.
These business support processes include human ressource management, fixed asset managment and treasury. Although IT-Support processes are not considered by the Solution
Map Composer, performance indicators regarding IT-Support habe been added. For completion, please consider IT-related issues also in the "technology"-view of all main processes.
Regarding the treasury processes, "standard" treasury processes have been considered as well as Core Banking Processes of the SAP Banking Solution Map and Cash Management
processes of the SAP Public Sector Solution Map.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer
If for a considered support process aspects of other main processes predominate, please refer to the adequate metrics on the other sheets.

Support process Performance Indicator Definition

HR Management Unsolicited Applications This ratio compares the number of cold applications to the number of applications responding to an advertisement.
Rate (Number of unsolicited applications/Number of applications)*100
HR Management Value of Sick Leave Per To calculate this ratio, first the number of workdays employees are absent through sick leave are divided by total
Employee FTE workdays. Then this is multiplied by total Salary. Third, the product is divided by the number of total FTEs. The
measure converts the absence of employees due to sick leave into an average dollar amount. It represents the
average cost per employee of the unplanned sick leave during the period. As the dollar value is based on average
Salary it can be said to reflect a mixture of the following: direct replacement costs; Salary value of lost productivity;
and costs of overstaffing due to consistently high absence levels. The ratio may be applied to managerial,
professional, operative, and clerical employees. (((Total Days Absent Sick Leave)/Total Workdays) * Total
Salary)/Total Headcount FTE

IT-support Percentage of The number of breakdowns (e.g. computer companies) expressed as a percentage of total installations.
Breakdowns Breakdowns / Total Installations * 100
IT-support Total IT Costs Total information technology costs including labor, hardware, software, network and communications, services,
supplies, user training and other direct costs
IT-support Total IT Costs as a % of Total IT costs expressed as a percentage of revenue. Total IT Costs / Revenue * 100
Revenue
Treasury Accounts Payable This ratio indicates the number of times the Accounts Payable "turned over" - that is, were paid - in a period. Period
Turnover Ratio Purchases/Accounts Payable, Ending Balance. Period Purchases/Accounts Payable, Ending Balance

Treasury Acid Test Ratio This ratio compares the company's Current Liabilities with its Quick Assets - Cash, Marketable Securities, and
Accounts Receivable. These assets are considered "quick" because they either are cash or can be converted to
cash quickly. The Acid Test determines how well a corporation can meet its current obligations immediately - within
days. [Quick Assets/Current Liabilities] * 100
Treasury Average Collection The Average Collection Period is the average number of days between the day the invoice is sent out and the day
Period the customer pays the bill. Note: Average Daily Credit Sales equals Sales/365. This computation indicates the
company's efficiency in enforcing its credit policy. Average Receivables/Sales * 365
Treasury Average Receivables The Average Receivables is the sum of the beginning and the closing balance for a period divided by two.
[Beginning Receivables + End Of Period Receivables]/2
Treasury Cash Flow Return on Cash Flow Return On Investment compares the cash flow of a firm to its owners with the total assets employed to
Investment generate those flows. CFROI is calculated in two steps. First, it measures the inflation-adjusted cash flows
available to all capital owners in the firm and compares them with the inflation-adjusted gross investment made by
the capital owners. Then the ratio of gross cash flow to gross investment is translated into an internal rate of return
by recognizing the finite economic life of depreciating assets and the residual value of nondepreciating assets such
as land and working capital. Gross Cash Flow/Gross Investment

Treasury Cash Ratio The ratio compares the company's Cash and Marketable Securities with its Current Liabilities. The cash ratio
includes even fewer assets that the acid test; it leaves out Accounts Receivable. The Cash Ratio determines how
well a corporation can meet its current obligations immediately. [Cash + Marketable Securities]/Current Liabilities *
100
Treasury Cash Receipts To Ending To compute this ratio, the Cash Receipt Total is divided by the given period's ending Accounts Receivable balance.
Receivables Ratio Cash Receipts/Ending Receivables * 100

Treasury Cash to Cash Cycle Time The Cash To Cash Cycle Time represents the time from which your company spends a dollar on purchased
material to when it realizes a dollar received in revenue and has a direct impact on your company’s cash flow.
Effective Supply Chain Planning reduces the inventory conversion period by manufacturing, processing and selling
goods more quickly. This in turn reduces the Cash-to-Cash cycle. Inventory days of supply + Days sales
outstanding - Average payment period for materials
Treasury Cash Turnover The cash turnover ratio relates Sales to a company's cash balance. The ratio shows the effectiveness of an
organization's use of its cash position to generate revenue. Sales/Cash
Treasury Cost Performance Index Budgeted cost of work performed divided by actual cost of work scheduled. Budget cost of work performed / Actual
(CPI) cost of work scheduled * 100
Treasury Current Liabilities to Assessing the ratios of Current Liabilities divided by Working Capital is critical to understanding the source of an
Working Capital Ratio organization's Working Capital. Average figures should be used for Working Capital and Current Liabilities. Average
Current Liabilities/Average Working Capital
Treasury Current Ratio The Current Ratio compares Current Assets to Current Liabilities. It indicates the number of times Current Assets
will pay off Current Liabilities. Current Assets/Current Liabilities
Treasury Free Cash Flow The Free Cash Flow is equal to the remaining Net Operating Profit After Taxes (NOPAT) after necessary
investments have been deducted. It represents the cash earnings a company would generate if its capitalization
were unleveraged. NOPAT - Necessary Investments
Treasury General and All expenses incurred in connection with performing general and administrative activities. Examples are executives'
Administrative Expenses salaries and legal expenses. General and Administrative Expenses

Treasury Indirect Costs Expenses that can't be directly identified with the costing object (or identified with difficulty) such as a product and
department. Example: Advertising for the company. It is also known as Common Costs
Treasury Indirect Expenses Usually, Indirect Expenses consist of General And Administrative (G&A) Costs, Selling Expenses, and Other
Indirect Costs (OIC), which cannot be attributed to the making of a specific product. G&A Expenses + Selling
Expenses + other Indirect Costs
Treasury Invoice Accuracy Rate The percentage of faultless invoices. Faultless Invoices / Total Invoices * 100
Treasury Nonoperating Income Income, which is not operational income, e.g. interest (if the company is not a bank).

[Link] page 32 of 33
Key Performance Indicator Repository
Business Process Methodology
Business Support Processes

This list is the outcome of a solution map created out of all business support processes of all solution maps, completed by the performance indicator overview files (.ppt) also provided
by the Solution Map Composer.
These business support processes include human ressource management, fixed asset managment and treasury. Although IT-Support processes are not considered by the Solution
Map Composer, performance indicators regarding IT-Support habe been added. For completion, please consider IT-related issues also in the "technology"-view of all main processes.
Regarding the treasury processes, "standard" treasury processes have been considered as well as Core Banking Processes of the SAP Banking Solution Map and Cash Management
processes of the SAP Public Sector Solution Map.
Cost measures have been added for completion, stemming from the performance indicator overview files (.ppt) also provided by the Solution Map Composer
If for a considered support process aspects of other main processes predominate, please refer to the adequate metrics on the other sheets.

Support process Performance Indicator Definition

Treasury Operating Cash Flow The expected or certain value of a future cash flow discounted to the present at an appropriate interest (discount)
rate. It is equal to the earnings before depreciation minus taxes. This ratio measures the cash generated from
operations, not counting capital spending or working capital requirements. Sum = Sum over all i periods, Cash
Flow(i) = Cash Flow in the ith period, n(i) interest rate from now to the ith period, 1/n(i) = discount factor for the ith
period. Sum[ [Cash Flow[i]] * [1/n[i]]]
Treasury Operating Cash Flow The Operating Cash Flow Demand equals earnings before depreciation minus taxes. It measures the cash
Demand generated from operations, not counting capital spending or working capital requirements. Earnings Before
Depreciation - Taxes
Treasury Operating Expenses The day-to-day expenses incurred in running a business, such as sales and administration, as opposed to
production. Operating Expenses
Treasury Present Value The current value of a future cash flow or series of cash flows discounted at an appropriate interest rate or rates.
Discounted Future Cash Flows
Treasury Total Debt The sum of Long Term Debt and Short Term Debt. Long Term Debt + Short Term Debt
Treasury Working Capital Working Capital, sometimes known as Net Working Capital or Net Current Assets, is equal to the difference
between Current Assets and Current Liabilities. The more Working Capital a company has, the greater is its
liquidity. Current Assets - Current Liabilities
Treasury Working Capital Turnover Working Capital Turnover is a ratio of Sales to average Working Capital. It indicates how well management is using
Working Capital to generate revenues - how many "times" it is turning capital over into sales revenues.
Sales/Working Capital * 100

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