To work more effectively with KPI indicators, it is also important to take into account a number of mistakes that can be made.
Lack of coordination of tasks
If indicators are created for the sake of the process of creation itself, and not for the purpose of improving the efficiency of the enterprise, then this only promises to produce a disjointed information baggage.
Lack of coordination of tasks
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This usually happens when each department and division creates its own performance indicators. Such a system can provide statistics, but does not help in improving productivity.
In the area of software solutions, there jamaica phone data is a whole group of systems called BI (Business Intelligence). It allows you to control indicators through the work of analysts who select their own KPIs for each task from a standard set.
They then generate reports that give an overall picture of the situation. The mistake is that some data points to favorable conditions, while others point to the opposite. Due to the limited KPI picture, different departments may start to give opposite information.
As an example, consider the supply chain of an organization that was focused on reducing costs.
The main goal was to acquire the cheapest raw materials. To get a discount, the service employees purchased raw materials in large quantities. This overstocked the warehouse, froze financial resources in stocks and diverted funds from circulation.
Moreover, to achieve good discounts, they had to purchase raw materials with a higher percentage of defects. This in turn affected the workload of production.
The production department had its own KPI in the form of equipment utilisation coefficient (employees received a bonus if it exceeded 70%). To ensure the highest utilisation, employees of this department manufactured large volumes of individual types of goods.
Lack of coordination of tasks
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This allowed to reduce the time of reconfiguration of the machines, but it complicated the work of the sales department, for which another KPI was set - fulfillment of the sales volume. In order for customers to be satisfied, it is necessary to provide specific products in a certain period of time, and not sell one product one month and another the next.
In the end, each department accomplished its assigned tasks, but the activities of the entire enterprise fell into disarray.