Key Performance Indicators (KPI) and Quality
W hat You Can Measure You Can Manage.
A Key Performance Indicator is a measure of performance, there are many performance mesaures, there are only a few (fewer than 20) key performance indicators.
I n order to know "what am I doing?", many companies use functional measures, but to measure the performance of the chain, it is necessary to use complex control parameters to measure the efficiency and the effectiveness.
The Critical Success Factors are "the few area in which it is possible to obtain positive risults determines the success in the business, at the individual level but also of the entire enterprise and of the whole chain".
The intgrated control system must use Key Performance Indicators (KPI).
Each indicator of level 3 can be disaggregated to find more specific measures, and arrive then at a fourth level of indicators. The first three levels are general and useful to represent any kind of company. The fourth level is domain-specific. The analysis can be supported by methodologies of Activity Based Costing and Activity Based Management that determine the best drivers to justify the way the company is going related to costs. For the income analysis, approaches which try to measure the impact of single competitive factors can be used.
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