KPI and Prioritization
- 1. Key Performance Indicator & Prioritizing Hassan Fayyaz 15091598-105 Usama Fayyaz 15091598-107 Zeeshan Yousuf 15091598-113
- 2. What is KPI KPI means “Key Performance Indicators”. A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs vary between companies and industries, depending on their priorities or performance criteria. Also referred to as "key success indicators (KSI)".
- 3. History of KPI: In 3rd century Chinese Wei Dynasty (Emperors) use first time that concept for rating how the member of Royal family were performing their work. But shifted to industry in 19th century by Scottish Miller.
- 4. Why Use KPI’s • Performance effectiveness. • For the accuracy • actual reflection of the process • It is reasonable to use the KPI as a tool to improve ongoing process performance
- 5. Advantages of KPI • Improve operations. • Efficient management • Visibility on performance and strategic goal • It helps to measure both the financial and operational goals of a company. • KPIs focus employees' attention on the tasks and processes.
- 6. Types of KPI: • Process KPIs - measure the efficiency or productivity of a business process. Examples - Days to deliver an order.. • Input KPIs - measure assets and resources invested in or used to generate business results. Examples – Investment in business, Funding for employee training.
- 7. Types of KPI: • Output KPIs - measure the financial and nonfinancial results of business activities. Examples - Revenues, Number of new customers acquired. • Leading KPI measure activities that have a significant effect on future performance. • Lagging KPI is a type of indicator that reflect the success or failure after an event has been consumed. Such as most financial KPIs, measure the output of past activity.
- 8. Types of KPI: • Outcome KPI - Reflects overall results or impact of the business activity in terms of generated benefits, as a quantification of performance. • Examples are customer stratification, brand awareness. • Qualitative KPI - A descriptive characteristic, an opinion • Examples are employee satisfaction through surveys which gives a qualitative report
- 9. Types of KPI: • Quantitative KPI - A measurable characteristic, resulted by counting, adding, or averaging numbers. Quantitative data is most common in measurement and therefore forms the backbone of most KPIs. • Examples are Units per man-hour.
- 10. Characteristics of a good KPI • KPI is always connected with the business goals. • A KPI are decided by the management. • Easy to understand. A KPI need to be SMART: • Specific • Measurable • Achievable • Result-oriented • Time-bound
- 11. Prioritizing in SIMUL8 Priority in SIMUL8 has many different connotations. One simulation object may have priority over another for a number of different reasons. Priority could be used for determining the order in which Work Center receive a shared Resource, the order in which Work Items are processed, or even which Work Center has control over the routing of Work Items.
- 12. Work Center / Resource Priority • If a Resource is attached to several Work Center and one Work Center is more critical to the overall throughput than others (i.e. the system bottleneck), then it is important that this Work Center receives the Resource before any others do.
- 13. Work Center / Resource Priority (cont’d) • 1. Fixed value - The Work Center with the highest priority value will receive the Resource first. For example, Work Center 1 has a priority value of 60 and Work Center 2 has a priority value of 50. If Work Centers 1 and 2 both require the same Resource, then Work Center 1 will obtain the Resource first, because it has the higher priority value. Note that all Work Centers will start with a default value of 50, giving no preference. The minimum value is zero, and maximum value is one hundred.
- 14. Work Center / Resource Priority (cont’d) • 2. Label value –Resource priority can also be determined by a label. With this option, the Work Center that is waiting to process an item with the highest label value will receive the Resource first. For example, if the Queue for Work Center 1 has a Work Item with a lbl_Importance value of 5, but the Work Item in the Queue for Work Center 2 has a lbl_Importance value of 3, then Work Center 1 will receive the Resource first.
- 15. Prioritizing Work Centre Routing Out • Use the routing-out dialog to tell SIMUL8 where Work Items should go next after leaving an object. • If the object is connected to the next with one simple connection (routing arrow) then the routing dialog has no options. • If there is a choice of two or more locations to go to then the routing dialog box can be used to change the routing rules. The priority sequence can be changed by using the up and down hand arrows to change the object order.
- 16. Routing In priority Click the Routing In button the the Activity dialog box. This lets you control where an Activity gets the Work Items that it performs tasks on.
- 17. Prioritize • Label / Work Item Priority in Queues SIMUL8 will allow work to be prioritized within a queue based on a label. In earlier versions of SIMUL8, this would have to be a label called Priority, however now any label can be used. By clicking on a Storage Bin / Queue’s Properties and checking the box marked Prioritize, a list of potential labels will appear. To prioritize according to a label, select the appropriate label. SIMUL8 will now sort all Work Items in the queue according to the label value, from highest first to lowest. Alternatively, the user can choose to sort according to a reverse priority, where labels are sorted from highest to lowest.
- 18. Resources of Priority • Resource Priority allows the user to specify the preference as to which Resource should be drawn to the Work Center. The list sequence defines that SIMUL8 will always attempt to use the Resource listed first; it will only use the second listed Resource if the first is not available. By switching to Circulate, SIMUL8 will assume that there is no preference as to which Resource is selected and will circulate evenly between the options.