Professional Documents
Culture Documents
Key Performan Indicators SoftwareIndustry1.2
Key Performan Indicators SoftwareIndustry1.2
Key words: ISA-95, ISO 22400, MES/MOM, MOM4, KPI, Software Industry
Copyright 2015 by Technical University - Sofia, Plovdiv branch, Bulgaria ISSN 1310 - 8271
1. Introduction
The software industry is one of the fastest
growing industries worldwide. Characteristic of the 2. ISO 22400
software industry is that it goes through the stages
of development through which passed the The standard ISO 22400 Automation
traditional manufacturing industry, but within a few systems and integration - Key performance
decades, the emergence of software companies from indicators (KPIs) for manufacturing operations
only a few people to large international companies management, comes as a natural extension of the
with multiple centers around the world and standard ANSI/ISA-95 (IEC 62264) [5, 6]. Since
hundreds of thousands of employees and customers. the standard ANSI/ISA-95 can be applied for the
Each company aims to compete with global purpose of the software industry [8], the
companies to ensure same or rapidly increasing information collected from an ANSI/ISA-95 based
quality at lower prices (Outsourcing), with an MES/MOM system should be analyzed and
increasing level of standard of living. [1,2] presented in a meaningful manner with the help of
This requires the introduction of new methods of specific KPIs for the software industry.
management of the software industry, ensuring the To realize the intended benefits for the software
achievement of high efficiency and reducing losses industry, the information about the process,
as their main source of raising the price of the final employees, used documentation and equipment,
product. [7] collected by the system must be efficiently used in
Since the software development has become a fast- order to improve productivity of the company’s
developing industry in which every company has its resources.
own Business Process Model, a conclusion can be Following ANSI/ISA-95, Figure 1 illustrates the
made that for the modeling of the software kinds of data that are presented in the Key
development process an industrial standard such as Performance Indicators generated at Level 3.
ANSI/ISA-95 can be used.
ISA-95 is the international standard for integration
of enterprise and control systems. ISA-95 consists
of models and terminology for covering all the
activities of for production, maintenance, inventory
and quality. These can be used to determine which
information has to be exchanged between systems
for sales, finance, and logistics and systems for
production, maintenance, and quality. This
information is structured in UML models that cover
all objects in the industry such as Personnel,
Equipment, Material and Process Segment used for
scheduling, execution and analysis tasks.[3]
Key Performance Indicators may also be considered
as economic indicators used to assess the progress
or degree of compliance with regard to important Fig. 1. KPIs in MES/MOM systems
objectives or critical success factors within an
organization. An economic indicator serves as a The Key Performance Indicators can be grouped
basis for decisions (problem identification, in the following categories:
presentation, information extraction), for control
Temporal Key Performance Indicators
(target / actual comparison), for documentation
and/or for coordination (behavior management) of Key Performance Indicators by Order
important facts and relationships within the Key Performance Indicators by
company. Production Unit
KPIs alone are not sufficient factors to perform the
necessary management and execution operations for
an enterprise. For many of the indicators, the actual
threshold may have to be defined as company-
specific. If the value of the indicator exceeds or falls
below the limit, actions are intended to be initiated
to improve efficiency. It is necessary to define
warning and action limits. Warning limits help to
detect the trends in process and equipment changes
before enterprise-defined thresholds are violated.[4]
Fig.2. Time lines for order processing
Shows the Production Orders delivered on time (if It is calculated as a sum of the durations of all
possitive). Downtimes
C) Key Performance Indicators by Order
PO Standard Busy Time (pBT) = SUM (WO
Standard Busy Time) Efficiency = SUM (Standard Time/Split Consumed
Time)
It is calculated as a sum of Standard Busy Times of
the Work Orders included in the Production Orders. Efficiency is calculated as a sum of ratios between
Standard Time for “consuming” a lot and the Actual
PO Busy Time (eBT) = SUM (WO Busy Time)
Time for it.
It is calculated as a sum of Actual Busy Times of
Reworks = SUM (Reworks)
the Work Orders included in the Production Orders.
It is an important indicator, showing the sum of the
Process Time (PCT, BAZ) = BT – DeT SUM (WO
durations of reworked lots (i.e. bug found and sent
TimeInProcess)
back for development or unclear specification, etc.).
It is calculated as a difference between Busy
Time and the Delays of all Work Orders. PO Allocation Degree = BT (Busy
Time)/TPT(Execution (Lead) Time)[%]
Delay Time (DeT, SU) = SUM (WO Preparation
Time) It is calculated as a ratio between the actual Busy
Time for a Production Order and the Lead Time (the
time between receiving the order up to its The allocation efficiency is the ratio between the
finishing). The Allocation Degree is an important real allocation time of a workplace and planned
indicator, showing the “density” of the process and time for allocating the workplace.
the load of every workplace.
Efficiency = PDT / BT [%]
PO Throughput = PQ (Produced Quantity) / TPT
The efficiency is the portion of the main usage time
(Execution Time) [units/hour]
of the entire allocation time, thus it is a measure for
The Throughput is a major indicator that shows the the productivity of the workplace. Since only the
ratio between produced units (documents, operating time is value-adding and is remunerated
programs, etc.) and the Execution Time. The by the market, for a company it must be the goal to
tracking of this indicator may lead to correction of increase this portion drastically.
the standard times for execution of a product It is calculated as a ratio between Main Usage Time
(version, release, etc.) and Busy Time.
Operational Time (OT) = SUM (Shift Time) Shift Availability = PDT/PBT [%]
Duration
It is calculated as a ratio between Main Usage Time
This indicator represents the operational time in and Effectiveness = Total Standard Time / Time In
which the employees can be used. process and Planned Allocation Time
Planned Allocation Time (PBT) = OT – planned Effectiveness = Total Standard Time / Time In
stops (Total Expected Stoppages) process
It is calculated as a difference of the Operational It represents the ratio between Total Standard Time
Time and the sum of all planned stoppages (i.e. for execution of some activity and the actual Time
lunch breaks, office administration work, etc.). This in Process of the Work Order for that activity.
is the time that can be used for execution of tasks.
Quality Rate = GQ (Good Quantity Prime MLs) /
Busy Time (BT) = PBT – SUM (downtimes with PQ (Produced Quantity) [%]
mainType = SetUp and subtype != Installation II
It is calculated as a ratio of the produced lots with
Configuration (preparation times))
no quality issues and the whole produced lots.
It is calculated as a difference between Planned
OEE index = Availability*Effectiveness*Quality
Allocation Time and the sum of all Downtimes with
Rate [%]
Main Type – Setup and Sub Types that are not
Installation or Configuration (strictly for Software
Industry). In the conventional manufacturing industry Overall
Equipment Effectiveness (OEE) is a measure for
Processing Time= BT – SUM (DownTimes with
the efficiency of machines and/or plants,
Main Type != SetUp)
manufacturing cells with several machines or an
It is calculated as the difference between the Busy entire assembly line. The OEE Index forms the
Time and the sum of Downtimes which Main Type basis for improvements by better production
is not Setup. information, identification of production losses,
Main Usage Time (PDT) = TimeInProcess (PCT) and improvement of the product quality by
= PCT – SUM (Setup Times) optimized processes.
The OEE Index represents the used availability, the
It is calculated as a difference between the Time in effectiveness of the production unit, and their
Process and the sum of all Setup Times quality rate summarized in a characteristic number.
SetUpTimes (DeT) = SUM (Downtimes with For the purpose of Software development the OEE
MainType = SetUp and SubType = Installation && Index will be calculated for each workplace.
Configuration) Reworking Ratio = Rework Quantity / Produced
It represents the sum of all Downtimes with Main Quantity
Type Setup and Sub Type – Installation and An important indicator that shows the relevant
Configuration reworked quantity of lots is:
D) Key Performance Indicators by Time Utilization = Time In Process / Shift Duration
Production Unit (Workplace)
Actually this is the ratio between the “InProcess”
Allocation Efficiency = BT (Busy Time)/ PBT time spans of all WO and the shift duration.
(Planned Allocation Time) [%]
Standard Time Utilization = Total Standard Time / each request is estimated by Story Points or other
Shift Duration tangible indexes in terms of size and complexity
and usually measured in man-hours (mhrs). The
Represents the aim of the performance indicator and
request is decomposed to tasks (Work Orders) that
it is calculated as a ratio between the standard time
have to be time-estimated by some Standard Time.
and the shift duration. [6,10]
This Standard Time may be approximately set by
4. Conclusions executing a spectral analysis on a Task backlog (for
requests with similar characteristics). The Lead
All these Key Performance Indicators aim Time then can be calculated by using Standard Time
to better visualize the process of software and OEE index (if OEE index is given in %) as:
development by accentuating on temporal and
Lead Time = Standard Time / OEE index / 100
workplace metrics. Based on these calculations and
measurements, the company management is Fig. 5 illustrates some of the described KPIs by
responsible to find the opportunities for workplace. The first two charts visualize the OEE
improvement and to take the necessary actions to index as Normal Distribution and its trend by shift
gain advantages and to update the set goals. For this for a given period of time. The rest two charts
purpose, additional embedded Statistical Process represent performance and quality indicators for the
Control (SPC) tools can be used to determine given period.
averages, standard deviations, normal distributions,
correlations, norms, etc. for tasks grouped by
similar characteristics and their calculated KPIs.