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IJAOM-Keyperformansindicators

Management Strategic Level (Return on Invested Capital – ROIC, Economic Value Add 
– EVA, Net Operating Profit, Inventory
Turnover, Revenue, Cash flow, Market Position), (b) BP Management Strategic Level  
(Financial Turnover, Budget/Cost and Expenses, Cost of quality, Productivity, Supply 
Chain Excellence, Regulatory and social compliance), (c) BP Management Operational 
Level (Safety, Quality, Environment, Cost/Manufacturing Efficiency, Delivery, Time to 
market, Education and development, Time to Hire (Nightingale, 2005).
2.2 Defining Metrics & KPI Indicators in Evaluation of Business Processes 
An important aspect in the business process lifecycle is the evaluation of business 
processes performance, since it helps organizations to define and measure progress 
towards their goals. Performance requirements on business processes can be specified by 
means of Process Performance Indicators (PPIs) with target values that must be reached 
in a certain period. A PPI is a measure that reflects the critical success factors of a business 
process defined within an organization, in which its target value reflects the objectives 
pursued by the organization with that business process. Note that we use PPI as a kind of 
Key Performance Indicator (KPI) that focuses exclusively on the indicators defined on the 
business processes (R´Io-Ortega, Resinas, Ruiz-Cortés, 2010).
Only a couple of processes modelling languages are found to be based on functional 
paradigm. Functional paradigm can support hierarchical process decomposition to control 
complexity (Xie, 2001).
2.3 The Power of BP Metrics and KPI Indicators 
W. W. Eckerson indicates three type of KPI indicators: (a) Leading indicators: “a KPI 
that measures activities that have a significant effect on future performance of industrial 
objectives” which are causal roots of the outcome (i.e. lagging indicator) they influence, 
and actionable for the future performance against one or more lagging indicators; (b

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