A key performance indicator can be measured, and it usually tells how a business is adhering to its intended business model and strategies. The word “intended’ actually emphasizes how a business should choose relevant and effective measurements that directly or indirectly reflect the level of success in meeting its goals. A business must take into account three important questions while developing KPIs –
- What is the best way to measure performance?
- What absolutely must be done right?
- What data is most pertinent to decision support?
As part of IIOT Industry 4.0 application, Utthunga Technologies, by virtue of its domain knowledge, can implement KPI managers for customers across industries. Implementation by us will include the supply of KPI manager application hardware, software, design, engineering and implementation.
It should be noted that, the mere development of a relevant KPI does not make the business successful. Effective implementation is very necessary and measuring aspects alone are not enough to yield success. The data related to KPIs should act as an essential guide for strategic decision making and not just be considered as a hard benchmark for performance.
The best way forward is to filter out the unwanted information and to ensure that appropriate and relevant KPIs are available to their intended audience. There can be scope for a holistic approach with globally strategic KPIs as a result of the global strategic planning or even regional, local or a product specific KPIs.
For manufacturing industry, the KPIs are usually classified under the following sub headings:
- Business KPI
- Process KPI
- Production KPI
- Equipment KPI
- Inventory KPI
- Quality KPI
- Energy KPI
- Maintenance KPI
- HSE KPI