KPIs and Exception Management Overview
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ScribdTranslationsKPIs and Exception Management Overview
Translated by
ScribdTranslationsKey Performance Indicators (KPI) and Exception Management
CAD CAM CIM
PRESENTED BY:
JOSE MAJIN ERAZO
PRESENTED TO:
ENG. OSCAR ROJAS
FACULTY OF ELECTRONIC ENGINEERING AND TELECOMMUNICATIONS
PROGRAM IN INDUSTRIAL AUTOMATION ENGINEERING
POPAYAN
2014
Key Performance Indicators (KPI) and Exception Management
1. INTRODUCTION
1.1 DEFINITION
1.2 VENTAJAS
1.3 OBJETIVOS
1.4 SOME KEY PERFORMANCE INDICATORS KPIS
1.4.1 TIME INDICATORS
1.4.2 QUALITY INDICATORS
1.4.3 PRODUCTIVITY INDICATORS.
1.4.4 PRODUCTION AND INVENTORY INDICATORS.
1.4.5 TOTAL INDEX OF EXTERNAL AND INTERNAL FAILURES
REPORTED.
1.4.6 MONTHLY PERCENTAGE OF VARIATION IN COSTS
INTERNALS. (PERCENTAGE)
1.4.7 PERCENTAGE OF SCHEDULE COMPLIANCE
MONTHLY LABOR. (PERCENTAGE)
1.5 CLASSIFICATION OF KEY INDICATORS OF
PERFORMANCE KPIs
1.6 CHARACTERISTICS OF KEY INDICATORS
PERFORMANCE KPIs
1.7 CRITERIA FOR THE SPECIFICATION OF THE INDICATORS
KEY PERFORMANCE INDICATORS (KPIs)
2. EXCEPTIONS
2.1 EXAMPLES OF EXCEPTION HANDLING
3. BIBLIOGRAPHY
Key Performance Indicators (KPI) and Exception Management
1. INTRODUCTION
One of the many characteristics that a production company has in its
processes are the indicator elements that allow them to evaluate achievements or
point out shortcomings to apply the necessary corrections. The measurement in the
process improvement is directly related to the difficulties, with the
timely identification of the issues and allows understanding the low
yields. Now, these indicators are a fundamental tool
because they allow for the collection and analysis of relevant data and forecasting
results. The concept of process vision is related to the indicators that
they measure the performance of the different processes and key activities for a business
The organization and the quantitative vision reflect the achievements of the objectives.
1.1 DEFINITION:
An indicator reveals the behavior or dynamics of a process, which when
comparing oneself with some reference allows for correction and prevention. the indicators,
generally refers to quantitative data, which indicate under what condition
there is an aspect of the company that is interested to know; such as by
example, reception processes, storage, inventories, dispatches,
distribution, deliveries, billing, storage, and information flows between
business partners. In addition, they can be numbers, facts, opinions that
show the conditions or situations that are required. Thus, an indicator, before
everything is statistical, financial, administrative, and operational information that is taken to
the directives of the organization provide them with the foundations for making decisions
that are timely and appropriate, to adopt corrective measures.
In summary, key performance indicators focus on observing
results and provide focused information on a particular issue of
agreement with its evolution over time. The KPIs are 'communication links'
that allow high-level executives to communicate the mission and vision of the
empresa a los niveles jerárquicos más bajos, involucrando directamente a todos
the collaborators in achieving the strategic objectives of the company.
1.2ADVANTAGES
According to the book indicators of logistics management by engineer Luis Aníbal Mora García,
the indicators have some characteristics such as:
They measure changes over time.
They facilitate the observation of the results of the actions.
c) They are tools that allow evaluating a development process.
d) They see how improvements can be achieved in a project to be developed
e) Supports and facilitates decision-making processes.
f) It serves as a basis for the adoption of effective and useful standards and regulations.
for the organization.
Therefore, the different objectives of the indicators can be listed.
performance.
1.3 OBJECTIVES
allow identifying and making decisions on operational issues
measure the degree of competitiveness of the company against its competitors
national and international.
Satisfying customer expectations by reducing time
delivery and optimization of the service provided.
Improve the use of the assigned resources and assets, to increase the
productivity and effectiveness in different activities towards the final customer.
Reduce expenses and increase operational efficiency.
Compare yourself with companies in the sector at the local and global level.
Key performance indicators should be known and established from the
moment when the strategic development plan is established, in the stage of
evaluation, etc. These key performance indicators allow for decision making
decisions, but it is not enough to just accumulate data for the sake of accumulating it; rather, they must
allow to characterize, classify, establish relationships, study frequencies and
interpret data with the sole aim of improving the management process.
1.4 SOME KEY PERFORMANCE INDICATORS KPIs
An organization must have a certain number of indicators to establish
constant information, detailed in aspects such as: effectiveness, efficiency,
effectiveness, productivity, quality, etc.
Some of these indicators may be:
1.4.1 Time Indicators:
These aim to know and control the time it takes to develop
or to execute a certain process, for example the time it takes to download or
load a truck.
For example, the total cycle of an order is an indicator that highlights the time
time elapsed from the moment a customer places an order until the
product is delivered and invoiced.
1.4.2 Quality indicators:
Estos analizan la eficiencia y el nivel de los procesos relacionados con pedidos o
maintenance of goods, transport, etc. They are of vital importance since
they reflect cost efficiency and service levels, which determine the
competitiveness in highly changing markets.
1.4.3 Indicators and productivity
They point out the capacity of the resources available, such as labor,
capital represented in investments in inventories, information systems and
communication, storage spaces, etc.
1.4.4 Production and inventory indicators.
The supply chain presents the movements of materials and products, and
de estos dependen el reabastecimiento de productos en función de servicios y
costs associated with the company.
1.4.5 Total index of external and internal reported failures.
This indicator groups a general concept in the area of maintenance.
teams, is the result of the sum of the internal failures within the company that
have been reported by some media and also the external problems that
clients or other people or entities formally report to the company.
The index covers a lot of information and even suggests breaking it down.
this parameter in subindices that would have definition concepts such as
frequency of occurrence, place of occurrence or report of occurrence, among others.
1.4.6 Monthly percentage change in internal costs. (Percentage)
The index takes into account the total amount in internal expenses to the company and makes
the calculation associated with the percentage variation of these parameters with respect to the
costs incurred in the current month. The indicator is a starting point for the
analysis of different internal situations that may be affecting
economically for the company, it promotes the identification of potential problems
internals to quickly carry out the necessary correction.
1.4.7 Percentage of compliance with the monthly work schedule.
(Percentage)
For the calculation of this indicator, the number of activities is taken into account.
planned, the number of activities actually carried out, with this data we
calculate the percentage of compliance with the monthly schedule, next is
present the proposed formula:
( )
PCCL
The indicator is key in those companies where planning is encouraged.
As a basis for good job performance, this parameter indicates what percentage
the activities scheduled at the beginning of a workday were
successfully completed. Thus being able to create business strategies for the
total fulfillment of structured activities to achieve efficiency in
at all times in the company.
It is also suggested to have greater reach and precision in the indicator,
formulate percentage weights for the activities to create a more comprehensive summary
detailed breakdown of the percentage of compliance with the activities.
1.5 CLASSIFICATION OF KEY PERFORMANCE INDICATORS
KPIs
Indicators can be classified as temporary and permanent:
1.5.1 The temporals: they are those that have a certain finite period. These
they are due to the achievement or execution of a project; to the achievement or result of an objective;
etc. thus the indicators cease to exist, once they have fulfilled their cycle for those who
were created.
1.5.2 The permanents: refer to variables or factors that affect
continuously to the organization, especially to the processes. Therefore, they must
to be reviewed and compared with the characteristics of the environment of the
organization.
1.6 CHARACTERISTICS OF KEY INDICATORS
PERFORMANCE KPIs
Key performance indicators have quantifiable characteristics,
which means they must be expressed in number or percentage; consistent,
they are the result of using the same formula with the key information
so that, over time, they can be compared; addable, means that all
the indicators should generate actions and decisions that seek improvement in the
quality of the services provided and products marketed; comparable,
they must be designed using the same data with the intention of being compared with
similar indicators from similar industries.
1.7 CRITERIA FOR SPECIFYING KEY INDICATORS
PERFORMANCE KPIs
For the creation of key performance indicators, it is necessary to have
truthful information that allows for the identification of anomalous processes, creation
of strategies and execution of action plans, in addition to other factors such
as:
The name: the name allows to clearly define the objective and what it is going to be for.
used, as well as allowing to differentiate one indicator from another.
The formula for the calculation: in this section, it should be specified and expressed the
Mathematical formula clearly for calculating its value.
The units: the values of a certain indicator must be expressed
in units to be related to certain types of factors.
Other criteria to take into account are glossaries, brochures or manuals for
specify the relevant aspects of the indicators that are managed in the
organization; established goals, an indicator must be associated with an objective
to reach, so that it can be compared and followed in the
passage of time.
2. EXCEPTIONS
Within a batch production process, an exception may occur when
an event occurs outside of normal behavior, of course, the handling
of these is an essential function in these batch processes. The manipulation of
exceptions can occur at the model control levels of the
activities and can be part of the procedure control, altering its normal
behavior.
Thus, an exception can be defined as an event that can occur in
any part of a company and its effect is outside of the standards
plated or desired in a production process.
2.1 EXAMPLES OF EXCEPTION HANDLING
This section presents some examples where it can be indicated the
need for exception handling, some of these are:
The lack of availability of raw materials, public services, or equipment
of the plant: exceptions may arise in a poor assignment of
resources of material, equipment or personnel that hinders the normal
execution of the recipe.
Product or problems in the process.
Malfunctioning of the control equipment: in the basic control it could happen.
exceptions such as the malfunction of a piece of equipment or module
of control due to an internal or external cause.
Dangerous conditions, such as fires or chemical spills:
este tipo de situaciones alteran en gran medida el nivel de seguridad de
all the company's resources and must have exception handling
with a high level of importance that ensures its safety.
Now, the failure monitoring techniques are available.
concepts like total productive maintenance, which presents a
Japanese philosophy that focuses on eliminating losses associated with downtime,
quality and costs to industrial production processes. While in the
related to the concept of exception handling, there is a dynamic in
the desired control strategies, in which a non-event is detected
desired, is evaluated, is analyzed and a response is executed.
3. BIBLIOGRAPHY