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)
Do'stlaringiz bilan baham: |