4. Diseño del controlador
4.3. Diseño del lazo de corriente
Description
Focus
Targets
Analysis and Resources
Calculation
Data Profile
KPI 16
Overall notes
When sales data is not available for calculation, marketers can use the square footage of the stores, as an approximation of their sales levels.
Additional resources
Î http://jan.ucc.nau.edu/~rml/adv311/process/research/
lesson/sld009.htm References
1. Kevin, J. C., Krieg, P. C. and McGarry Wolf, M. (2006), Market new products successfully: Using simulated test market technology. Maryland: Lexington Books, available Functional Areas Sales and Customer Service
Sub-categories Sales KPI Record sK2313
Definition Measures the brand or product availability, as a result of numeric distribution, weighted by its share of all commodity sales.
Variations % ACV distribution Related KPIs % Adjusted trial rate
% Product category performance ratio
Purpose To indicate the customer traffic in stores that sell the brand.
BSC perspective Customer
Objective measured Improve inland distribution of products
Threshold examples
Red: <40% Yellow: 40-60% Green: >60%
Target setting notes
Threshold example is for reference only. However, the higher the results, the more exposed has to be the product to the customers visiting the stores.
Subordinate metrics A = $ Sales of stores that stock the brand
B = $ Sales of all stores Calculation formula (A/B)*100
Trend is good when Increasing
Data capture period Month Standard reporting
frequency Monthly
Data collection
method Sales reports
Limitations Accurate reporting requires access to sales data of all stores.
Industries Any Sub-categories Any
Tags offer
at: http://www.amazon.com/Market-New-Products-Successfully-Technology/dp/0739111795
2. Farris, P. W., Bendle, N. T., Pfeifer, P. E. and Reibstein, D. J. (2010), Marketing metrics: The definitive guide to measuring marketing performance, Second Edition, available at: http://www.amazon.com/Marketing-Metrics-Definitive-Measuring-Performance/dp/0137058292 3. Baye, M. R. (2001), Proposed merger between Heinz and Beech-Nut Scrutinized, available at: http://faculty.
lebow.drexel.edu/HammoudehS/Managerial/Heinz_case.
In Practice Recommendations Scorecard Outlook
Dashboard Outlook
An intricate key performance indicator in itself, the % All commodity volume (ACV) distribution is gaining popularity, especially, with distribution channels worldwide. The important fact with this indicator is, that it measures the number of stores selling one product, while also weighing the stores based on their size, in the KPI calculation formula. An informed distribution in the volume of one product, based on the size of the stores that make it available to the end consumer, is especially important for the accurate distribution of products based on the stocking and display requirements of individual retail units.
The most important benefit of % All commodity volume distribution is that it provides valuable insight into consumer traffic and demand for a certain brand, as per the retail store that sells it. This allows for an analysis of the sales levels generated by different stores, while also taking into account the size and capacity of the stores considered. A downside of the % All commodity volume
Perspective Customer
Strategic Objective Improve inland distribution of products
KPI Results
% All commodity volume (ACV) distribution % All commodity volume (ACV) distribution
distribution is that it does not appraise the merchandising and marketing efforts that each store puts forward in order to sell products that pertain to a particular brand.
Some recommendations on increasing brand visibility include:
Research analysis of consumer traffic and consumer segmentation data
Integrating all commodity volume distribution data into market analysis models and key branding techniques
Focusing on the retailers that produce the best results and developing strategies to maintain profitable collaborations
Benchmarking on best practices for leveling out all commodity volume distribution
Regular communication session with retailers on best merchandising and marketing strategies.
M1
results Trend Target %Target
complete Results
% All commodity volume
(ACV) distribution sK2313 M 45% 40%
70% 57%
# Earned man-hours
Description
Focus
Targets
Analysis and Resources
Calculation
Data Profile
KPI 17
Overall notes
Involvement of organizations, especially the construction companies, in measuring earned man hours reflects the maturity of project management. Dividing the earned man-hours by the actual man-hours provides a productivity index that is frequently used in construction projects.
Functional Areas Portfolio and Project Management Sub-categories Project Management
KPI Record sK347
Definition Measures the total man-hours
corresponding to the completed work in place.
Variations # Man-hours with completed work in place
Related KPIs % Time sheets incorrectly filled
# Man-hours per occurrence spent locating problems
% Time predictability at construction due to project manager change orders
Purpose To assess job productivity and projects progress.
BSC perspective Internal Processes
Objective measured Increase productivity levels
Threshold examples
Red: <80 Yellow: 80-100 Green: >100
Target setting notes
A low level of earned man hours indicates that the project has experienced lower than expected productivity, as actual man-hours were greater than the progress earned man-hours.
Subordinate metrics A = # Planned man-hours B = % Progress of work completed
Calculation formula A*B Trend is good when Increasing
Data capture period Spot Standard reporting
frequency Monthly
Data collection
method Time sheets of employees Limitations Accurate reporting for this KPI is
dependent on a well maintained Enterprise Project Management system, capable to record progress at any point.
Industries Any Sub-categories Any
Tags man-hours, constructions
Additional resources
Î http://www.iasdm.org/journals/index.php/ijaec/
article/view/49/56
In Practice Recommendations Scorecard Outlook
Dashboard Outlook
Man-hours stand at the basis of labor productivity.
Whether it is # Labor hours, # Hours per unit, # Effective working time or # Earned man-hours, labor productivity KPIs provide quantifiable insight into the actual effort an employee puts in, respective of the monthly income this same employee earns within the company. Measuring labor productivity is common practice in the construction and manufacturing industries, while also being a popular topic with portfolio and project management assignments.
# Earned man-hours provides indication of productivity Perspective Internal Processes
Strategic Objective Increase productivity levels
KPI Results
# Earned man-hours # Earned man-hours
against progress, and some advice into optimizing this productivity parameter can be formulated as follows:
Determine work order size and organize scheduling activities;
Measure and monitor progress against deadlines;
Set milestones that help with meeting deadlines;
Take into account considerations of budget;
Nurture collaborative environments that boost productivity levels.
M1 M2 M3 M4 M5
M6 M1 M2 M3 M4 M5 M6
85 90 90
95 100
110
100 110 90 95
85 90 KeyPerformance
Indicator
SmartKPIs.com reference number
Standard reporting frequency
Previous period results
Current
results Trend Target %Target
complete Results
# Earned man-hours sK347 M 100 110
110 100%
References
1. Serag, E. (2006), Change orders and productivity loss quantification using verifiable site data, available at: http://etd.
fcla.edu/CF/CFE0001221/Serag_Engy_200608_PhD.pdf
2. Rajendran, H. K. (2008), Process quality and capacity planning, available at: http://soar.wichita.edu/xmlui/bitstream/
handle/10057/2040/t08033.pdf
3. City of Bethel (2012), Liquefied and compressed natural gas (LCNG) as a bridge to reducing energy costs in rural Alaska, available at: http://www.akenergyauthority.org/Content/Programs/EETF/Documents/Round_1/004.pdf
% Cannibalization rate of new product offering
Description
Focus
Targets
Analysis and Resources
Calculation
Data Profile
KPI 18
Overall notes
A side effect of product line extensions is that in addition to stealing share from competitors, new offerings also take away market shares from the company’s current offering.
Functional Areas Sales and Customer Service Sub-categories Sales
KPI Record sK156
Definition Measures the decrease in sales of existing products due to launches of new products.
Variations % Ratio of the cannibalized sales volume Related KPIs % Current-year percentage sales due to
new products released in the past six years
$ Profits from new products or business operations
Purpose To indicate the break-even rate of cannibalization (the maximum sales volume of the new offering that could come from the company’s existing offering without incurring a loss).
BSC perspective Customer
Objective measured Expand customer reach
Threshold examples
Red: >50% Yellow: 20-50% Green: <20%
Target setting notes
Cannibalization is a consequence of product line extensions, which typically aim to increase the company’s revenues, or to steal market share from competition.
Subordinate metrics A = $ Sales of the new product that cannibalized existing products
B = $ Sales of the new product Calculation formula (A/B)*100
Trend is good when Decreasing
Data capture period Quarter Standard reporting
frequency Quarterly
Data collection
method Sales reports
Limitations Accurate reporting of the KPI is affected by the difficulty to measure the sales of the new product that cannibalized the existing products. It is necessary to know for sure that the decrease in sales of the existing products is due to the new product and not due to competition.
Industries Any Sub-categories Any
Tags sales, new products
Additional resources
Î http://mme.wharton.upenn.edu/help/marketing_math_
help.pdf
In Practice Recommendations Scorecard Outlook
Dashboard Outlook
New product launches ultimately impact the sales of existing products, by pushing forward the sales for the newly released products. The % Product cannibalization rate reflects on the magnitude of new released products on the existing product portfolio. Product cannibalization occurs when newly launched products target the same market segments as the existing ones. Some recommendations on effectively managing product cannibalization rates include:
Perspective Internal Processes Strategic Objective Expand customer reach
KPI Results
% Cannibalization rate of new product offering % Cannibalization rate of new product offering
Addressing new market segments for market base expansion;
Targeting related but different markets with new product offerings;
Using product cannibalization strategies on competitors rather than one self;
Forecasting the effects of a newly launched products on the existing product portfolio;
Marketing strategies that alleviate the effects new product launches have on existing company products.
Q1 Q2 Q3 Q4
26%
28%
31%
29%
31% 29%
26% 28%
KeyPerformance Indicator
SmartKPIs.com reference number
Standard reporting frequency
Previous period results
Current
results Trend Target %Target
complete Results
% Cannibalization rate of
new product offering sK156 Q 31% 29%
10% 29%
References
1. Srinivasan, S. (2014), Quantification of attribute driven product cannibalization induced by new product introduction, available at: http://www.worldcat.org/title/quantification-of-attribute-driven-product-cannibalization-induced-by-new-product-introduction/oclc/62090537
2. Desai, P. S. (2001), Quality segmentation in spatial markets: When does cannibalization affect product line design?, available at: http://pubsonline.informs.org/doi/abs/10.1287/mksc.20.3.265.9767
3. Pancras, J., Srisam, S. and Kumar, V. (2012), Empirical investigation of retail expansion and cannibalization in a dynamic environment, available at: http://dl.acm.org/citation.cfm?id=2398305
Q1 Q2 Q3 Q4
% Employee utilization rate
Description
Focus
Targets
Analysis and Resources
Calculation
Data Profile
KPI 19
Overall notes
Data from time sheets and ERP applications can be used to report utilization at any level of the organization - individual, project, group and company. There are approaches that consider utilization rate equal to the chargeable ratio. But the difference between them, is Functional Areas N/A
Sub-categories N/A KPI Record sK320
Definition Measures the time employees are actually used in project-related work, relative to their availability.
Variations % Rate of utilization Related KPIs # Labor multiplier
Purpose To indicate the efficiency in planning employees’ activities and involvement in different projects.
BSC perspective Internal Processes
Objective measured Increase labour productivity
Threshold examples
Red: <80% Yellow: 80-90% Green: >90%
Target setting notes
Thresholds given have just an exemplification purpose.
Targets should be set in relation to the utilization potential, which should be calculated by extracting training hours and other personal time from the total employment hours.
Subordinate metrics A = # Time working on projects (in days / hours)
B = # Time available for work-ing on projects (Note: this is not equal to total labor time, as employees can have some time allocated for research, training or other similar activities)
Calculation formula (A/B)*100 Trend is good when Increasing
Data capture period Month Standard reporting
frequency Monthly
Data collection
method Employee weekly activity reports Limitations Accurate reporting requires good
integration of employee time sheets and correlation to projects and other activities.
Industries Professional Services
Sub-categories Engineering, Recruitment / Employment Activities, Legal Practice, Business Consulting, Accounting Services Tags productivity , employees
that the latter refers to total labor time, whereas the first one extracts from the employment time, the hours needed for research, training or other similar activities that are inherent in a professional services firm.
In Practice Recommendations Scorecard Outlook
Dashboard Outlook
By taking the average number of hours employees actually work in month, and dividing this figure by the standard number of hours employees have to work in a month, companies ultimately get a result that reflects on their
# Employee utilization rate. Employee utilization rates impact human resources decisions one way or the other.
Over-utilization of staff, can lead to a conscious decision to hire more people, while under-utilization of staff may result in the reevaluation of the working potential one company has and makes use of. The # Employee utilization Perspective Internal Processes
Strategic Objective Increase labor productivity
KPI Results
# Employee utilization rate # Employee utilization rate
profitable within the company, by comparing the cost of each employee to the actual billable hours worked within the reporting period mentioned. Some recommendations on optimizing # Employee utilization rates include:
Planning for performance and adequate workload distribution;
Monitoring productivity levels and evaluating individual performance;
Enabling individual performance management software;
Create a working environment that boosts productivity.
M1
results Trend Target %Target
complete Results
# Employee utilization
rate sK320 M 80% 85%
100% 89%
Additional resources
Î http://www.performancemagazine.org/the-challenges-in-building-an-employee-performance-centered-ecosystem/
References
1. Beekman Associates (2005), Agency utilization rate what is it and how does it impact agency compensation?, available at:
http://beekmanassociates.com/pdfs/AgencyUtilizationRates.pdf
2. Lambert, A. D. (2006), Individual differences: Factors affecting employee utilization of flexible work arrangements, available at: http://www.sciencedirect.com/science/article/pii/S000187910800016X
3. Carver, D. A. (2005), What’s wrong with management. Lincoln: iUniverse, available at: http://www.amazon.com/Whats-Wrong-Management-Daniel-Carver/dp/0595363806
$ Telecom subscriber acquisition cost
This indicator is widely used in telecommunication industry sectors, especially in the mobile phone networks. Mobile telecommunication companies frequently pay incentives (commissions) to retailers that bring in customers for their networks. In the case of Personal Communication Systems, the subscriber acquisition cost includes the acquisition costs for the handsets offered to subscribers and the commissions Functional Areas N/A
Sub-categories N/A KPI Record sK270
Definition Measures the average cost of gaining a new subscriber to the service. The costs to acquire new subscribers refer to the marketing and advertising expenses, as well as to other specific costs, such as the subsidized provision of equipment (e.g.
mobile phones), payment of commissions and the employment of sales staff.
Variations $ Subscriber acquisition cost
$ Average cost per subscriber Related KPIs # Mobile phone web users
Purpose To assess the process of new customer acquisition, from a cost and profitability perspective.
BSC perspective Customer
Objective measured Expand customer reach
Threshold examples
Red: >150 Yellow: 100-150 Green: <100
Target setting notes
Targets should be set taking into consideration the industry specifics and the available budget.
Subordinate metrics A = $ Spend for gaining new subscribers
B = # Gross subscriber additions Calculation formula A/B
Trend is good when Decreasing
Data capture period Month Standard reporting
frequency Monthly
Data collection
method Customer data base, sales records, financial statements Limitations Accurate reporting for this KPI is
dependent on a well maintained system for tracking new customer acquisition and expenditure directed towards increasing the base of subscribers. Due to the various sources of data, automation in the integrated performance reporting system is not recommended.
Industries Telecommunications / Call Center Sub-categories Telecommunications
Tags cost, telecommunications
paid to retailers, from which are deducted the revenues received from the sale of handsets, for each new customer.
In Practice Recommendations Scorecard Outlook
Dashboard Outlook
Included in the $ Telecom subscriber acquisition cost are the direct and indirect costs associated with acquiring new telecom subscribers: marketing costs, advertising costs, discounts, the costs associated with using various distribution channels to gain new customers. Having that competition is rather intense in the telecommunications industry worldwide, subscriber acquisition costs have to be carefully managed so that new subscribers choose one provider over the other, without turning into unprofitable
Perspective Customer
Strategic Objective Expand customer reach
KPI Results
$ Telecom subscriber acquisition cost $ Telecom subscriber acquisition cost
customers. Some recommendations on optimizing $ Telecom subscriber acquisition costs include:
Devising multiple subscriber packages that target different customer groups within the market;
Personalizing product offering for increased customer loyalty;
Facilitating unique customer experiences;
Build a solid technological infrastructure to support industry advancement.
M1 M2 M3 M4 M5
M6 M1 M2 M3 M4 M5 M6
120 145
167
208 170
139
139 170
208 145 167
120 KeyPerformance
Indicator
SmartKPIs.com reference number
Standard reporting frequency
Previous period results
Current
results Trend Target %Target
complete Results
$ Telecom subscriber
acquisition cost sK270 M 170 139
50 35%
References
1. Kumar, V. (2008), Customer lifetime value: The path to profitability, available at: http://www.amazon.com/gp/search?index=b ooks&linkCode=qs&keywords=9781601981561
2. Mozer, M. C., Wolniewicz, R., Grimes, D. B., Johnson, E. and Kaushansky, H. (2000), Predicting subscriber dissatisfaction and improving retention in the wireless telecommunications industry, available at: http://dl.acm.org/citation.cfm?id=2326585 3. Urgent Issues Group (2010), Subscriber acquisition costs in the telecommunications industry, available at: http://www.aasb.
gov.au/admin/file/content105/c9/INT1042_12-04.pdf