TABLE OF CONTENTS

1.Introduction ..................................................................................................2

2.Features of KPI ... ......................................................................................... 3

3.Terms of KPI ... .............................................................................................4

4.Kinds of Key Performance Indicators .. ...................................................... 4

5.KPIs relevant to maintenance strategy........................................................ .5

6.Challenges to measure the maintenance strategy KPIs ............................. 6

7.Challenges to measure Business Focus KPI................................................ .9

8.Challenges in measuring Purchasing KPI . ................................................ 13

9.Popularity and benefits from benchmarking . ............................................ 13

10.References ... ................................................................................................. 14

 1. Introduction

The KPIs vary as per the nature of the business and the business’s strategy. These assist to assess
the development of a firm towards its long-term goals and vision, particularly toward in case of
quantify knowledge-based objectives.

KPIs shall not be baffled with the phenomena of “Critical Success Factor”. For example, a
critical success factor is something that requires being in position to attain the objective.

Identifying Indicators of maintenance strategy

Performance indicators vary from aims and business drivers. A school may consider failure ratio
of the students as a measure of Key indicators of Performance which can help the institute to
understand its place in world of educational society, where a business may regard as the fraction
of profits from return consumers as a possible KPI.

However it is essential for a firm to at slightest identify its Key Performance Indicators. The
main situation for recognizing Key Performance Indicators are:

-Having already a pre-existing business process.

-Needs for business courses.

-Having a qualitative or quantitative dimension of the comparison and results with set goals.

-Exploring the variances and alteration procedures or resources to attain short-term and long
term goals.

A KPI may go after the SMART criterion which means the gauge has a precise reason for the
commerce, it is quantifiable to actually get a worth of KPI, the distinct standards have to be
attainable, the KPIs have to be pertinent to calculate and it have to be occasion phased. It means
worth or result is shown for a pre-existing and pertinent period.
The advantages of gauging KPIs can permit management to watch the corporation or section
performance in keeping them in one place.

A squad can job jointly to a regular set of quantifiable goals.

It may be a rapid way of monitoring the real presentation of a strategic objective

Decisions may be taken faster when they are visible and accurate measures to rear them up.

This may be a faster way of monitoring the real performance of the goal. (Mann, 2008)

2. Features of KPI

a. Key Performance Indicator is always associated with various corporate goals.

b. A Key Performance Indicator is determined by the top or middle management.

c. This feels right to person who is answerable for outcome of its work.

d. A Key Performance Indicator leads to act.

e. Few in figure.

f. They are important indicators of the performance wanted by the business.

g. Simple to know.

h. It shall be fair.

i. Users may determine their growth overtime.

j. Key Performance Indicator’s mislays its value after a while so they have to be periodically
refreshed and reviewed.
3. Terms of KPI

a. Specific.

b. Measurable.

c. Achievable.

d. Result-oriented.

e. Time-bound

Classification of indicators -

KPIs define a group of standards which are used to quantify against. All these unprocessed sets
of standards fed to structure to sum up information alongside are known as indicators. All
Indicators should be specific as possible. Candidates for Key Performance Indicators can be
abridged into the given sub-categories-

Quantitative KPIs which could be obtainable as a number.

Sensible KPIs that border with alive company processes.

Directional KPIs indicating whether a firm is attaining improved or not.

Actionable KPIs should be adequately in firm's control to result change.

Financial KPIs which are used in the process of performance measurement along with a look at
an functioning index. (Sano, 2010)

4. Kinds of Key Performance Indicators in maintenance strategy

1. Business Focus Key Performance Indicator –These should include KPIs examples about the
management of Business Focus like labor relation, employee loyalty, compensation and
development, recruitment training etc.
2. Work Identification Performance Indicator -It includes all KPIs samples of representative of
Business Focus, contact of Business Focus by telephone, supermarkets and shops management,
customer care, customer loyalty etc.

3. Planning Key Performance Indicator –It include KPIs from Work Identification, public
relations, Scheduling, Planning etc.

4. Scheduling Key Performance Indicator -It includes KPIs from order management, material
management, quality, productivity, maintenance.

5. Execution Key Performance Indicator -It include KPIs from delivery on time , suppliers rating
, transaction cost unit of purchasing, purchasing cost, quantity bought over required, delivery is
not sufficient quantity / quality, cost of purchasing units. (Knowware.fast.com, 2010)

5. Details of KPIs relevant to maintenance strategy

The KPIs which are relevant to maintenance strategy for in an industry are explained
below -

A. Business Focus KPI

The Business KPI with reference to maintenance strategy can be classified as -

1. Acquiring of New customers

2. Demographic analysis for potential customers, approval levels , rejections etc
3. Status of present existing customers
4. Attrition rate of customers
5. Revenue i.e. Turnover generated by different segments
6. Amount of Outstanding balances from different customers
7. Customer relationships and collection of debt
8. Customer segmentation by profitability.
The CRM software (customer relationship management) is used to develop and manage most of
these KPIs.

The data availability at a fast rate is the competitive issue in the case of most of the
organizations. Businesses which possess a higher credit/operational risk (example wealth
management or credit cards ) may desire weekly or may be even daily KPIs availability and their
analysis, which is supported by appropriate IT tools and systems.( Wright, 2009)

6. Challenges to measure the Business Focus KPI

1. Public relations KPI

This includes KPIs which are related with the evaluation indicators of Public relations.
Maintenance Strategy maintains a separate PR department which is responsible for maintaining
its image across the globe and represents the company at all fronts.

- Evaluation of Effective press releases, PR items:

The challenge over here is to devise a proper and exhaustive method of evaluation of press
release which will give us a clear cost benefit analysis for our product and company. Also
another challenge which a Maintenance Strategy faces is the objective implementation of the
system which is developed without it being affected by a personal bias of any employee.

• To check if the messages posted by the media agencies are effective

• With each PR article, you list out the most significant ideas which you desire the media should
communicate and give weight to that idea. 10 being the total weight.
• Then you tend to review the valuation report which has been posted by the newspaper and then
add the points for those ideas which are published and add all the corresponding points.
• After that evaluation of presentation and content of the items will follow. 10 points.
• Report’s Average score performance = (convinced points + content points) / 2.
• Assess the importance or weights for all newspapers in which you have participated, 10 being
the total weight.
• (Weight * Report’s Average score performance) / 100.

- Conducting survey
The aim of survey is to explore the thought process of guests and agents’ understanding.

The challenge faced with the surveys is that the company doesn’t receive appropriate and
accurate responses from many of its customers and value chain partners resulting into
inconsistency in data and hence the results obtained after analysis.

- Awareness of customers and the public image of the product and business

This activity is done for the measurement of the results after and before the implementation of
PR. (Sano, 2010)

2. Work Identification KPI

The Work Identification KPIs are related to assessment pointers of Work Identification activities
and events in marketing like the change in amount of Business Focus within the Work
Identification period.

- The rate of Business Focus in Work Identification period and before the Work
Identification.

The major challenge faced here is that many times Maintenance Strategy is not able to judge the
effectiveness or actually change in Business Focus as the competitor might pick up your products
in the Work Identification or launch period just to bring inconsistency in your data and make you
believe that your product is doing very good even though that may not be the actual situation.

Percentage of Business Focus in Work Identification and after Work Identification.

After the Work Identification period, the company revenues usually decrease, this is due to the
reason that customers do not use all products. Thus, there should not be much worry if turnover
rate is lower after the Work Identification as compared to during the Work Identification.

- The number of Work Identification costs

Keeping a check on the costs and appropriate usage of resources is another challenge which
needs to be taken up by evaluating all perspectives of Work Identification campaigns.

• Advertising Work Identifications.

• Awards.
• Management Work Identifications

3. Planning KPI

The Planning KPI is related to appraisal indicators of Planning activities in marketing such as the
cost of advertising on the 1000 target audiences, the level of awareness of the product etc.

- The cost of advertising on the 1000 target audiences:

• First the costs for each channel is calculated for the determination of their effectiveness and
then the average is calculated along with the comparison of each channel with its competitors in
order to have a overall view of performance.

The challenge here lies in the breakdown of costs and an accurate estimation of costs which are
borne by the competitors since that data is not easily available.( Taylor, 1990)
 - The level of awareness of the product:

• The Rate of recognition of product is equal to the no. of people who recognize the product
divided by the total people who gathered.

- Rating by customers of advertising messages

• The impressed customers are asked to rate the messages but the problem is that many times
customers gives different preferences in front of different customers. He might be rating your
product higher when you are getting the form filled and subsequently your competitor will be
rated higher when his representative is getting it done for them.

4. Scheduling KPI

The Scheduling includes the rate of new visitors visiting our webpage or community or the total
number of views on page but the major challenge is to quantify this Scheduling hits and verify if
the Business Focus have increased due to these efforts or some other reason. Like Maintenance
Strategy also markets itself through social media marketing websites, online communities and
blogs, but it faces a problem of identifying the advantages of these sources and cannot
differentiate the Business Focus due to these initiatives. (Reh, 2008)

7. Challenges to measure Business Focus KPI

The Business Focus KPI include targets or performance measurements of Business Focus rep,
shops and supermarkets, judging customer loyalty and customer care.
1. Customer care KPI

The customer care KPI is very important for any product based company and especially a
company like Maintenance Strategy which is one of the largest FMCG companies has a
challenge of customer servicing at retail outlets or to handle customer buying objections.

2. Market share KPI

The challenge ahead of the major FMCG companies is to ensure that they have a steady or
growing market share since the volume Business Focus is what brings profits to the FMCG
industry. Thus, Maintenance Strategy strives to maintain its market share by additional Work
Identifications, offers and newer products.

3. Customer loyalty KPI

These KPIs are used to measure the customer loyalty towards any company and it is very
important for Maintenance Strategy to strengthen the relationship with its customer and ensure
loyalty so that it can be converted into repeat Business Focus. The only problem which is
foreseen is the damage of customer loyalty due to spurious and duplicate products being sold in
the market by unauthorized vendors and distributors..

- Total customer lost

• The total number of customers do not buy your goods again.

• Number of customers includes: the number of first customers and customer loyalty removed.

- The life cycles of a customer

• Formula: a total relationship with customers / total client relationship.

7. Shops and supermarkets KPI

The challenge here is to maintain a good display of products over the shelf and provide better
schemes than others. But sometimes the supermarkets or shops owners tend to take up the
schemes and yet do not do a proper display of the goods which results in incomplete flow of
information about the particular product. (Mann, 2008)

8. Challenges in measuring Purchasing KPI

The purchase KPI leads to a distinction of marketing strategy from the other. A company due to
its sheer network of distribution and product availability can beat its competition by making its
product reach out to all the points of sale.

1. Timely delivery

• It can be calculated as the total no. of deliveries in time divided by the total delivery.
• Maintenance Strategy applies this formula for every provider and also the entire company each
month. The challenge here is to estimate the increasing costs of transportation and any minor
problems which might be encountered and accordingly estimate your required Business Focus
figures or price to be charged.

2. Delivery along with quantity and quality is a major concern which needs to be catered at
every stage of the product lifecycle.

3. Suppliers rating.

• The no. of suppliers for different goods each year and then no. who are removed per year
should be balanced with the no. of new suppliers added per year in order to ensure a timely
delivery and product availability. (Miller, 2008)
 9. Popularity and benefits from benchmarking

The Global Benchmarking Network, which is an association or network representing 22

countries and its benchmarking centers. The results of a survey by 450 organizations from over
40 countries show that:

1. 77% of organizations use Vision and Mission Statements along with Customer (Client)
Surveys , which is followed by our well known SWOT analysis(72%), 68% by Informal
Benchmarking, 49% make use of Performance Benchmarking and 39% fall in the
category of Best Practice Benchmarking.
2. Informal Benchmarking, Performance Benchmarking, Best Practice Benchmarking and
SWOT are the most likely tools which will form a major portion of the usage and more
than 60% of the organizations which are presently not using either of these tools have
shown interest to use them in the next 3 years. (Brunswick, 2009)
10.References

1. Knowware.fast.com (2010). Sample SLA measurable (KPIs). Accessed on 13th August

2010 from: http://knowwarefast.com/English/Content/KPIexample.HTM
2. Wright, C. (2009). Nestlé achieves Global Excellence with SAP Net Weaver BI and
IBM. Accessed on 15th August 2010 from: http://www-5.
05.ibm.com/ch/references/download/Maintenance Strategy_tivoli_db2.pdf
3. Sano, A. (2010). Home Ministry achieved KPI quantity. Accessed on 14th August 2010
from: http://sanooaung.wordpress.com/2010/03/31/home-ministry-achieved-kpi-quantity-
100-but-quality-is/
4. Taylor, T. (1990).  “Performance indicators”, BERA Dialogues(2), Accessed on 13th
August 2010 from:  http://books.google.co.uk/books ?id=uxK0MUHeiI4C 
5. Reh, J. (2008). How an organization defines and measures progress toward its goals.
Accessed on 15th August 2010 from:
http://management.about.com/cs/generalmanagement/a/keyperfindic.htm
6. Mann, T. (2008). Driving Your Company Value. Accessed on 14th August 2010 from :
http://www.articlesnatch.com/Article/Driving-Your-Company-Value/1325333
7. Ipace, B. (2010). Key Performance Indicators In Call Center. Accessed on 14th August
2010 from : http://www.articlesnatch.com/Article/Key-Performance-Indicators-In-Call-
Center/1137782
8. Miller, S. 2008). KPI Strategies and Implementation. Accessed on 12th August 2010
from: http://ezinearticles.com/?KPI-Strategies-and-Implementation&id=2189471
9. Brunswick, J. (2009). McKinsey's Technology Enabled Business Trends - New KPI
Strategy? Accessed on 15th August 2010 from :
http://aiimcommunities.org/e20/blog/mckinseys-technology-enabled-business-trends-new-kpi-
strategy