KPI Flashcards
Key Performance Indicators
Define KPI’s
KPIs are the specific criteria used to measure or evaluate the efficiency and effectiveness of the business’s performance. Businesses measure performance using key performance indicators.
Define percentage of market share
Percentage of market share measures the proportion of total sales that a business has in a specific industry, expressed as a percentage.
Define net profit figures
Net profit figures show what the business has earned after expenses are deducted from revenue over a period of time.
Define rate of productivity growth
Rate of productivity growth measures the change in productivity by how fewer resources are used to produce the same, if not a higher amount of outputs.
Define number of sales
Measures the quantity of products sold by the business over a given period of time.
Define rates of staff absenteeism
Measures the number of employees who fail to turn up for work when they are scheduled to do so, often expressed as a percentage.
Define level of staff turnover
is the percentage of employees that leave a business and need to be replaced in a given period.
Define level of wastage
Measures the amount of resources that are discarded by the business during the production process. Waste refers to surplus, excess, damaged or unused resources. Waste is expensive as the wasted materials cannot be used to generate income for the business.
Define number of customer complaints
The recorded number of customers who report dissatisfaction in relation to a defect, fault or issue with the product they have purchased in a given time period.
Define number of workplace accidents
The recorded number of employee related injuries that occur in a business over a period of time. Staff members who do not feel safe may not be motivated to work efficiently, which may increase staff absenteeism and levels of staff turnover.
