Monday, July 6, 2009
Key performance indicator
Key Performance Indicators (KPI) are financial and non-financial measures or metrics used to help an organization define and evaluate how successful it is, typically in terms of making progress towards its long-term organizational goals[1]. KPIs can be specified by answering the question, "What is really important to different stakeholders?".
KPIs may be monitored using Business Intelligence techniques to assess the present state of the business and to assist in prescribing a course of action. The act of monitoring KPIs in real-time is known as business activity monitoring (BAM). KPIs are frequently used to "value" difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. KPIs are typically tied to an organization's strategy using concepts or techniques such as the Balanced Scorecard).
The KPIs differ depending on the nature of the organization and the organization's strategy. They help to evaluate the progress of an organization towards its vision and long-term goals, especially toward difficult to quantify knowledge-based goals.
A KPI is a key part of a measurable objective, which is made up of a direction, KPI, benchmark, target, and time frame. For example: "Increase Average Revenue per Customer from £10 to £15 by EOY 2008". In this case, 'Average Revenue Per Customer' is the KPI.
KPIs should not be confused with a Critical Success Factor. For the example above, a critical success factor would be something that needs to be in place to achieve that objective; for example, an attractive new product.
Identifying Indicators of Organization
Performance indicators differ from business drivers & aims (or goals). A school might consider the failure rate of its students as a Key Performance Indicator which might help the school understand its position in the educational community, whereas a business might consider the percentage of income from return customers as a potential KPI.
But it is necessary for an organization to at least identify its KPIs. The key environments for identifying KPIs are:
• Having a pre-defined business process (BP).
• requirements for the business processes.
• Having a quantitative/qualitative measurement of the results and comparison with set goals.
• Investigating variances and tweaking processes or resources to achieve short-term goals.
Marketing KPIs
Among the marketing KPIs top management analyses are:
1. Customer related numbers:
1. New customers acquired
2. Status of existing customers
3. Customer attrition
2. Turnover generated by segments of the customers - these could be demographic filters.
3. Outstanding balances held by segments of customers and terms of payment - these could be demographic filters.
4. Collection of bad debts within customer relationships.
5. Demographic analysis of individuals (potential customers) applying to become customers, and the levels of approval, rejections and pending numbers.
6. Delinquency analysis of customers behind on payments.
7. Profitability of customers by demographic segments and segmentation of customers by profitability.
Many of these aforementioned customer KPIs are developed and improved with customer relationship management (CRM).
This is more an inclusive list than an exclusive one. The above more or less describe what a bank would do, but could also refer to a telephone company or similar service sector company.
Faster availability of data is beginning to become a concern for more and more organizations. Delays of a month or two were commonplace. Of late, several banks have tried to move to availability of data at shorter intervals and less delays. For example, in businesses which have higher operational/credit risk loading (that involve credit cards, wealth management), Citibank has moved onto a weekly availability of KPI related data or sometimes a daily analysis of numbers. This means that data is usually available within 24 hours as a result of automation and the use of IT.
KPIs for Manufacturing
Overall equipment effectiveness, or OEE, is a set of broadly accepted non-financial metrics which reflect manufacturing success.
KPIs for Supply Chain Management
Businesses can utilize KPIs to establish and monitor progress toward a variety of goals, including lean manufacturing objectives, MBE (Minority Business Enterprise) and diversity spending, environmental "green" initiatives, cost avoidance (CA) programs and low-cost country sourcing (LCCS) targets.
Any business, regardless of size, can better manage supplier performance with the help of KPIs robust capabilities, which include:
• Automated entry and approval functions
• On-demand, real-time scorecard measures
• Single data repository to eliminate inefficiencies and maintain consistency
• Advanced workflow approval process to ensure consistent procedures
• Flexible data-input modes and real-time graphical performance displays
• Customized cost savings documentation (CSD)
• Simplified setup procedures to eliminate dependence upon IT resources.
Suppliers can implement KPIs to gain an advantage over the competition. Suppliers have instant access to a user-friendly portal for submitting standardized cost savings templates. Suppliers and their customers exchange vital supply chain performance data while gaining visibility to the exact status of cost improvement projects and cost savings documentation (CSD).
Categorization of indicators
Key Performance Indicators define a set of values used to measure against. These raw sets of values fed to systems to summarize information against are called indicators. Indicators identifiable as possible candidates for KPIs can be summarized into the following sub-categories:
• Quantitative indicators which can be presented as a number.
• Practical indicators that interface with existing company processes.
• Directional indicators specifying whether an organization is getting better or not.
• Actionable indicators are sufficiently in an organization's control to effect change.
• Financial indicators used in performance measurement and when looking at an operating index
Key Performance Indicators in practical terms and strategy development means are objectives to be targeted that will add the value to the business most (most = KEY INDICATORS OF SUCCESS).
source:wikipedia.org
Read More......
KPIs may be monitored using Business Intelligence techniques to assess the present state of the business and to assist in prescribing a course of action. The act of monitoring KPIs in real-time is known as business activity monitoring (BAM). KPIs are frequently used to "value" difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. KPIs are typically tied to an organization's strategy using concepts or techniques such as the Balanced Scorecard).
The KPIs differ depending on the nature of the organization and the organization's strategy. They help to evaluate the progress of an organization towards its vision and long-term goals, especially toward difficult to quantify knowledge-based goals.
A KPI is a key part of a measurable objective, which is made up of a direction, KPI, benchmark, target, and time frame. For example: "Increase Average Revenue per Customer from £10 to £15 by EOY 2008". In this case, 'Average Revenue Per Customer' is the KPI.
KPIs should not be confused with a Critical Success Factor. For the example above, a critical success factor would be something that needs to be in place to achieve that objective; for example, an attractive new product.
Identifying Indicators of Organization
Performance indicators differ from business drivers & aims (or goals). A school might consider the failure rate of its students as a Key Performance Indicator which might help the school understand its position in the educational community, whereas a business might consider the percentage of income from return customers as a potential KPI.
But it is necessary for an organization to at least identify its KPIs. The key environments for identifying KPIs are:
• Having a pre-defined business process (BP).
• requirements for the business processes.
• Having a quantitative/qualitative measurement of the results and comparison with set goals.
• Investigating variances and tweaking processes or resources to achieve short-term goals.
Marketing KPIs
Among the marketing KPIs top management analyses are:
1. Customer related numbers:
1. New customers acquired
2. Status of existing customers
3. Customer attrition
2. Turnover generated by segments of the customers - these could be demographic filters.
3. Outstanding balances held by segments of customers and terms of payment - these could be demographic filters.
4. Collection of bad debts within customer relationships.
5. Demographic analysis of individuals (potential customers) applying to become customers, and the levels of approval, rejections and pending numbers.
6. Delinquency analysis of customers behind on payments.
7. Profitability of customers by demographic segments and segmentation of customers by profitability.
Many of these aforementioned customer KPIs are developed and improved with customer relationship management (CRM).
This is more an inclusive list than an exclusive one. The above more or less describe what a bank would do, but could also refer to a telephone company or similar service sector company.
Faster availability of data is beginning to become a concern for more and more organizations. Delays of a month or two were commonplace. Of late, several banks have tried to move to availability of data at shorter intervals and less delays. For example, in businesses which have higher operational/credit risk loading (that involve credit cards, wealth management), Citibank has moved onto a weekly availability of KPI related data or sometimes a daily analysis of numbers. This means that data is usually available within 24 hours as a result of automation and the use of IT.
KPIs for Manufacturing
Overall equipment effectiveness, or OEE, is a set of broadly accepted non-financial metrics which reflect manufacturing success.
KPIs for Supply Chain Management
Businesses can utilize KPIs to establish and monitor progress toward a variety of goals, including lean manufacturing objectives, MBE (Minority Business Enterprise) and diversity spending, environmental "green" initiatives, cost avoidance (CA) programs and low-cost country sourcing (LCCS) targets.
Any business, regardless of size, can better manage supplier performance with the help of KPIs robust capabilities, which include:
• Automated entry and approval functions
• On-demand, real-time scorecard measures
• Single data repository to eliminate inefficiencies and maintain consistency
• Advanced workflow approval process to ensure consistent procedures
• Flexible data-input modes and real-time graphical performance displays
• Customized cost savings documentation (CSD)
• Simplified setup procedures to eliminate dependence upon IT resources.
Suppliers can implement KPIs to gain an advantage over the competition. Suppliers have instant access to a user-friendly portal for submitting standardized cost savings templates. Suppliers and their customers exchange vital supply chain performance data while gaining visibility to the exact status of cost improvement projects and cost savings documentation (CSD).
Categorization of indicators
Key Performance Indicators define a set of values used to measure against. These raw sets of values fed to systems to summarize information against are called indicators. Indicators identifiable as possible candidates for KPIs can be summarized into the following sub-categories:
• Quantitative indicators which can be presented as a number.
• Practical indicators that interface with existing company processes.
• Directional indicators specifying whether an organization is getting better or not.
• Actionable indicators are sufficiently in an organization's control to effect change.
• Financial indicators used in performance measurement and when looking at an operating index
Key Performance Indicators in practical terms and strategy development means are objectives to be targeted that will add the value to the business most (most = KEY INDICATORS OF SUCCESS).
source:wikipedia.org
Thursday, July 2, 2009
INCOTERM 2000
Incoterms or international commercial terms are a series of international sales terms widely used throughout the world. They are used to divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation practices.
They closely correspond to the U.N. Convention on Contracts for the International Sale of Goods.
• Group E - Departure:
o EXW. Ex Works (named place): the seller makes the goods available at his premises.
• Group F - Main Carriage Unpaid:
o FCA. Free Carrier (named place): the seller hands over the goods, cleared for export, into the custody of the first carrier (named by the buyer) at the named place. This term is suitable for all modes of transport, including carriage by air, rail, road, and containerised / multi-modal transport.
o FAS. Free Alongside Ship (named loading port): the seller must place the goods alongside the ship at the named port. The seller must clear the goods for export; this changed in the 2000 version of the Incoterms. Suitable for maritime transport only.
o FOB. Free On Board (named loading port): the classic maritime trade term, Free On Board: seller must load the goods on board the ship nominated by the buyer, cost and risk being divided at ship's rail. The seller must clear the goods for export. Maritime transport only.
• Group C - Main Carriage Paid:
o CFR. Cost and Freight (named destination port): seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods have crossed the ship's rail. Maritime transport only.
o CIF. Cost, Insurance and Freight (named destination port): exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. Maritime transport only.
o CPT. Carriage Paid To (named place of destination): the general/containerised/multimodal equivalent of CFR. The seller pays for carriage to the named point of destination, but risk passes when the goods are handed over to the first carrier.
o CIP. Carriage and Insurance Paid to (named place of destination): the containerised transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
• Group D - Arrival:
o DAF. Delivered At Frontier (named place): It can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.
o DES. Delivered Ex Ship (named port):Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller pays the same freight and insurance costs as he would under a CIF arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but also Risk and Title up to the arrival of the vessel at the named port. Costs for unloading the goods and any duties, taxes, etc… are for the Buyer. A commonly used term in shipping bulk commodities, such as coal, grain, dry chemicals - - - and where the seller either owns or has chartered, their own vessel.
o DEQ. Delivered Ex Quay (named port): It means the same as DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination.
o DDU. Delivered Duty Unpaid (named destination place): It means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. The goods are not cleared for import or unloaded from any form of transport at the place of destination. The buyer is responsible for the costs and risks for the unloading, duty and any subsequent delivery beyond the place of destination. However, if the buyer wishes the seller to bear cost and risks associated with the import clearance, duty, unloading and subsequent delivery beyond the place of destination, then this all needs to be explicitly agreed upon in the contract of sale.
o DDP. Delivered Duty Paid (named destination place): It means that the seller pays for all transportation costs and bears all risk until the goods have been delivered and pays the duty. Also used interchangeably with the term "Free Domicile"
Seller's payment responsibility
For a given term, "Yes" indicates that the seller has the responsibility to provide the service included in the price. "No" indicates it is the buyer's responsibility. If insurance is not included in the term (for example, CFR) then insurance for transport is the responsibility of the buyer.
Read More......
They closely correspond to the U.N. Convention on Contracts for the International Sale of Goods.
• Group E - Departure:
o EXW. Ex Works (named place): the seller makes the goods available at his premises.
• Group F - Main Carriage Unpaid:
o FCA. Free Carrier (named place): the seller hands over the goods, cleared for export, into the custody of the first carrier (named by the buyer) at the named place. This term is suitable for all modes of transport, including carriage by air, rail, road, and containerised / multi-modal transport.
o FAS. Free Alongside Ship (named loading port): the seller must place the goods alongside the ship at the named port. The seller must clear the goods for export; this changed in the 2000 version of the Incoterms. Suitable for maritime transport only.
o FOB. Free On Board (named loading port): the classic maritime trade term, Free On Board: seller must load the goods on board the ship nominated by the buyer, cost and risk being divided at ship's rail. The seller must clear the goods for export. Maritime transport only.
• Group C - Main Carriage Paid:
o CFR. Cost and Freight (named destination port): seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods have crossed the ship's rail. Maritime transport only.
o CIF. Cost, Insurance and Freight (named destination port): exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. Maritime transport only.
o CPT. Carriage Paid To (named place of destination): the general/containerised/multimodal equivalent of CFR. The seller pays for carriage to the named point of destination, but risk passes when the goods are handed over to the first carrier.
o CIP. Carriage and Insurance Paid to (named place of destination): the containerised transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
• Group D - Arrival:
o DAF. Delivered At Frontier (named place): It can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.
o DES. Delivered Ex Ship (named port):Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller pays the same freight and insurance costs as he would under a CIF arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but also Risk and Title up to the arrival of the vessel at the named port. Costs for unloading the goods and any duties, taxes, etc… are for the Buyer. A commonly used term in shipping bulk commodities, such as coal, grain, dry chemicals - - - and where the seller either owns or has chartered, their own vessel.
o DEQ. Delivered Ex Quay (named port): It means the same as DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination.
o DDU. Delivered Duty Unpaid (named destination place): It means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. The goods are not cleared for import or unloaded from any form of transport at the place of destination. The buyer is responsible for the costs and risks for the unloading, duty and any subsequent delivery beyond the place of destination. However, if the buyer wishes the seller to bear cost and risks associated with the import clearance, duty, unloading and subsequent delivery beyond the place of destination, then this all needs to be explicitly agreed upon in the contract of sale.
o DDP. Delivered Duty Paid (named destination place): It means that the seller pays for all transportation costs and bears all risk until the goods have been delivered and pays the duty. Also used interchangeably with the term "Free Domicile"
Seller's payment responsibility
For a given term, "Yes" indicates that the seller has the responsibility to provide the service included in the price. "No" indicates it is the buyer's responsibility. If insurance is not included in the term (for example, CFR) then insurance for transport is the responsibility of the buyer.
Wednesday, July 1, 2009
Sebuah pesan indah dari George Carlin:
Bukankah luar biasa bahwa GEORGE CARLIN komedian di tahun 70an dan 80an – dapat menulis sesuatu yang sangat menyentuh dan baik.
1. Paradoks dalam zaman di masa hidup kita adalah bahwa kita memiliki gedung-gedung yang lebih tinggi tetapi kesabaran yang pendek, jalan bebas hambatan yang lebih lebar tetapi sudut pandang yang lebih sempit.
2. Kita mengeluarkan uang lebih banyak, tetapi memiliki lebih sedikit; kita membeli lebih banyak, tetapi menikmati lebih sedikit.
3. Kita memiliki rumah yang lebih besar dan keluarga yang lebih kecil, lebih nyaman, tetapi waktu yang lebih sedikit.
4. Kita memiliki lebih banyak gelar, tetapi logika yang lebih sedikit; lebih banyak pengetahuan, tetapi penilaian yang lebih sedikit; lebih banyak ahli, tetapi lebih banyak masalah; lebih banyak obat-obatan, tetapi kesehatan yang lebih sedikit.
5. Kita minum dan merokok terlalu banyak, meluangkan waktu dengan terlalu ceroboh, tertawa terlalu sedikit, menyetir terlalu cepat, marah terlalu besar, tidur terlalu larut, bangun terlalu lelah, membaca terlalu sedikit, menonton TV terlalu banyak, dan berdoa terlalu jarang.
6. Kita telah melipatgandakan barang milik kita, tetapi mengurangi nilai kita.
7. Kita terlalu banyak berbicara, terlalu jarang mencintai, dan terlalu sering membenci. Kita telah belajar bagaimana mencari uang, tetapi bukan kehidupan.
9. Kita telah mencapai bulan, tetapi memiliki masalah dalam menyeberang jalan dan
menemui tetangga baru.
10. Kita telah mengalahkan luar angkasa, tetapi bukan dalam diri kita.
11. Kita telah melakukan hal-hal besar, tetapi bukan hal-hal yang lebih baik.
12. Kita telah membersihkan udara, tetapi mengotori sang jiwa.
13. Kita telah mengalahkan atom, tetapi bukan rasa diskriminasi.
14. Kita menulis lebih banyak, tetapi mempelajari lebih sedikit. Kita berencana lebih banyak, tetapi mencapai lebih sedikit.
15. Kita telah belajar untuk terburu-buru, tetapi bukan menunggu. Kita membuat lebih banyak
komputer untuk menampung lebih banyak informasi, menghasilkan fotocopy yang lebih
banyak, tetapi kita berkomunikasi semakin lebih sedikit.
16. Ini adalah zaman dimana makanan siap saji dan pencernaan yang lambat, orang besar dengan karakter yang kecil, keuntungan yang tinggi dan hubungan yang renggang.
17. Ini adalah zaman dimana ada dua penghasilan tetapi lebih banyak perceraian, rumah yang
lebih mewah tetapi keluarga yang berantakan.
18. Ini adalah zaman dimana perjalanan dibuat singkat, popok sekali pakai buang, moralitas
yang mudah dibuang, hubungan satu malam, berat badan berlebihan, dan pil-pil yang
melakukan segalanya dari menceriakan, menenangkan, sampai membunuh.
19. Ini adalah zaman dimana banyak barang di etalase showroom dan tak ada stok dalam ruang
persediaan. Zaman dimana teknologi dapat menyampaikan surat ini kepada Anda, dan
zaman dimana Anda dapat memilih apakah Anda akan berbagi renungan ini, atau hanya
tekan “hapus”…
20. Ingatlah, luangkan lebih banyak waktu dengan orang yang Anda kasihi, karena mereka tidak akan ada selamanya.
21. Ingatlah, ucapkan kata yang baik kepada orang yang memandang Anda dengan ketakutan,
karena si kecil tersebut akan segera tumbuh besar dan meninggalkan Anda.
22. Ingatlah, beri pelukan hangat kepada orang di sisi Anda, karena itulah satu-satunya harta yang dapat Anda berikan dengan hati dan tidak membutuhkan biaya.
23. Ingatlah, katakan “saya menyayangimu” kepada pasangan Anda dan orang yang Anda
kasihi, tetapi dengan penuh makna. Ciuman dan pelukan akan memperbaiki luka ketika
dilakukan dari lubuk hati yang paling dalam.
24. Ingatlah, bergandeng tangan dan nikmati saat itu karena suatu hari orang tersebut tidak akan ada lagi.
25. Berikan waktu untuk mencintai, berikan waktu untuk berbicara! Dan berikan waktu untuk
berbagi pikiran-pikiran yang berharga di benak Anda.
DAN INGATLAH SELALU:
Hidup tidak diukur oleh jumlah nafas kita,
tetapi oleh saat-saat yang menghabiskan nafas
kita.
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