Examples of configuring and calculating KPI

This page provides examples of configuring and calculating KPIs with different scales.

In the examples, the following variables are used:

p0 = performance at the zero point / 100;
pp = performance at the plan point / 100;
pm = performance at the maximum point / 100;
minValue = value at the zero point;
maxValue = value at the maximum point;
fact = actual value;
plan = planned value.

Example of configuring and calculating KPIs using the Stabilization scale

Let's take a look at a Number of produced parts KPI.

Creating and configuring the KPI

1. In ELMA Designer, create a KPI Number of produced parts. On the Common tab, define the settings as shown in fig. 1.

Fig. 1. Creating a KPI. Common tab

2. On the Values tab, select the Stabilization scale and set it up as shown in fig. 2. Note, that the values of the Color scale are defined as the Deviation from the plan in measurement units.

Fig. 2. KPI settings. Values tab. Stabilization scale

3. Save and publish the KPI model.

4. Add the created KPI Number of produced parts to the employee's performance matrix template with the Standard scale and weight 100%.

KPI efficiency calculation

To calculate KPI efficiency, plan and fact KPI values must be entered in Web Application. There are two cases:

1. Fact value <= plan value. Assume the plan value = 100 pcs., and the fact value = 80 pcs.

2. Fact value > plan value. Assume the plan value = 100 pcs., and the fact value = 140 pcs.

KPI efficiency calculation formula for the Stabilization scale:

If:

fact value <= plan value:

(pp - p0) * (fact - minValue) / (plan - minValue) + p0
fact value > plan value:

pp - ((pp - pm) * (fact - plan) / (maxValue - plan))

Before calculating, the following conditions are checked plan = minValue and plan = maxValue, and if at least one of them is true, the KPI efficiency is 0.

Calculations for both cases:

1. Fact value <= plan value:

p0 = 0/100=0;

pp = 100/100=1;

pm = 0/100=0;

minValue = 0;

maxValue = 0;

fact = 80;

plan = 100.

(1-0)*(80-0)/(100-0)+0=0,8.

Thus, the KPI efficiency is 80% (fig. 3).

Fig. 3. Employee performance matrix with the "Number of produced parts" KPI

2. Fact value > plan value:

p0 = 0;

pp = 1;

pm = 0;

minValue = 0;

maxValue = 0;

fact = 140;

plan = 100.

1-((1-0)*(140-100)/(200-100))=0,6.

Thus the KPI efficiency is 60% (fig. 4).

Fig. 4. Employee performance matrix with the "Number of produced parts" KPI

Example of configuring and calculating KPI using the Increase scale

Let's take a look at a Revenue KPI.

Creating and configuring the KPI

1. In ELMA Designer, create a Revenue KPI. On the General tab, define the settings as shown in fig. 5.

Fig. 5. Creating a Revenue KPI. Common tab

2. On the Values tab select the Increase scale and configure it as shown in fig. 6. Note, that the Color scale values are defined as Deviation from plan in percent.

Fig. 6. Creating a Revenue KPI. Value tab

3. Save and publish the KPI model.

4. Add the created Revenue KPI to the employee's performance matrix template with the Standard scale and weight 100%.

KPI efficiency calculation

To calculate the KPI efficiency, the plan and fact KPI values must be entered in Web Application.

Assume the plan value = 100000 dollars, and the fact value = 95000 dollars.

Note that the formula and the KPI efficiency calculation method are the same for all the possible plan and fact values.

Formula for calculating the KPI efficiency for the Increase scale:

(pp – p0) * (fact – minValue) / (plan – minValue) + p0

Before calculating, the following conditions are checked plan = 0 and plan = minValue, and if at least one of them is true, the KPI efficiency is 0.

Calculations:

p0 = 0/100=0;

pp = 100/100=1;

minValue = 0;

fact = 95000;

plan = 100000.

(1-0)*(95000-0)/(100000-0)+0=0,95.

Thus, the KPI efficiency is 95% (fig. 7).

Fig. 7. Employee performance matrix with the "Revenue" KPI

KPI efficiency calculations for other scale types are similar to the examples above. The difference is the used formulae.

KPI efficiency calculation formula for the Decrease scale

If:

fact value <= plan value

(plan – fact) / (plan – minValue) * (p0 – pp) + pp

fact value > plan value

(maxValue - fact) / (maxValue – plan) * (pp – pm)

Before calculating, the following conditions are checked plan = 0, fact > plan and maxValue = plan, fact <= plan and MinValue = plan, and if at least one of them is true, the KPI efficiency is 0.

KPI efficiency calculation formula for the As planned and higher scale

The KPI efficiency calculation for this scale is the same as for the Increase scale.

KPI efficiency calculation formula for the As planned and lower scale

If:

fact value <= plan value

(pp – p0) * (fact – minValue) / (plan – minValue) + p0

fact value > plan value

the KPI efficiency is 0.

Before calculating, the following conditions are checked plan = 0, plan = minValue and fact= plan, if at least one of them is true, the KPI efficiency is 0. If at least one of the conditions plan = minValue or fact = plan is true, the KPI efficiency is 100%.

See also: