What are process key figures?
Definition of Process Key Performance Indicators
Process KPIs, also known as Key Performance Indicators (KPIs), are quantitative metrics used to measure and evaluate the success and performance of business processes. They serve as objective benchmarks to quantify the effectiveness, efficiency, and quality of processes and to identify potential areas for improvement.
Importance of Process Key Performance Indicators
Process KPIs provide companies with important insights into the performance of their processes. Through the systematic application of process KPIs, they can identify bottlenecks, weaknesses, and inefficient areas. These insights enable them to derive targeted measures for process optimization and increase their performance. In addition, process KPIs help companies strengthen their competitiveness by enabling a comparison with other companies or industry standards. By continuously monitoring and evaluating their process KPIs, companies can continuously work on their performance and identify best practices.
Types of Process Key Performance Indicators
1. Time-based KPIs
Time-based KPIs measure the time it takes for a process to be completed. They include, among others:
- Lead time: Lead time measures the time it takes for a process to be completed from start to finish. A short lead time is an indicator of efficient and smooth processes.
- Processing time: Processing time is the time required to perform a specific activity or task within a process. A low processing time indicates efficient task completion and contributes to the reduction of waiting times.
2. Quality-based KPIs
Quality-based KPIs measure the quality of a process or product. They include, among others:
- Error rate: The error rate is a KPI that measures the number of errors or defects that occur during a process. A low error rate indicates high process quality and contributes to customer satisfaction.
- Customer satisfaction: Customer satisfaction is a process KPI that measures customer satisfaction with the process or service provided. High customer satisfaction is a sign of successful processes and contributes to customer loyalty.
3. Cost-based KPIs
Cost-based KPIs measure the costs associated with performing a specific process. They include, among others:
- Cost per process: The cost per process is an important KPI that measures the costs associated with performing a specific process. By analyzing and optimizing the cost per process, companies can control their expenses and identify efficient processes.
4. Productivity-based KPIs
Productivity-based KPIs measure the efficiency and productivity of a process. They include, among others:
Utilization: Utilization measures the ratio of actual performance to the maximum possible performance of a process. High utilization indicates efficient use of resources.
Employee productivity: Employee productivity measures the performance and efficiency of employees in performing a process.
Examples and application areas
Lead time
Lead time is one of the most important process KPIs. It measures the time it takes for a process to be completed from start to finish. A short lead time is an indicator of efficient and smooth processes. It enables companies to identify bottlenecks that delay the process flow and take appropriate measures to accelerate the process.
Processing time
Processing time is the time required to perform a specific activity or task within a process. A low processing time indicates efficient task completion and contributes to the reduction of waiting times and lead times. By measuring and monitoring the processing time, companies can identify bottlenecks and take appropriate measures to shorten processing times and improve the efficiency of the processes.
Error Rate
The error rate is a metric that measures the number of errors or defects that occur during a process. A low error rate indicates high process quality and contributes to customer satisfaction. By monitoring and analyzing the error rate, companies can identify weaknesses in processes, take corrective action, and improve the quality of their products or services.
Customer Satisfaction
Customer satisfaction is a process metric that measures customer satisfaction with the process or service provided. It can be determined through surveys, feedback, or other evaluation methods. High customer satisfaction is a sign of successful processes and contributes to customer loyalty and the company's reputation. Companies can measure and specifically improve customer satisfaction using process metrics by collecting customer feedback, analyzing weaknesses, and implementing appropriate measures to optimize processes.
Cost per Process
The cost per process is an important process metric that measures the costs associated with performing a specific process. It includes direct costs such as labor and material costs, as well as indirect costs such as energy consumption, maintenance costs, and other expenses. Analyzing and optimizing the cost per process enables companies to control their expenses and identify efficient processes. By monitoring the cost per process, companies can identify potential savings, make efficiency improvements, and improve their financial performance.
Further Process Metrics
In addition to the examples mentioned above, there are a variety of other process metrics that may vary depending on the industry and individual requirements. These include utilization, reject rate, waiting time, employee satisfaction, and many more. The selection of relevant process metrics depends on the specific goals, the nature of the processes, and the requirements of the company. It is important to select those metrics that offer the greatest added value and best support the company's goals.
Conclusion
Process metrics are indispensable for measuring the success and optimization of business processes. They provide companies with valuable insights into the performance of their processes and serve as a basis for targeted improvement measures. Through regular monitoring and analysis of process metrics, companies can increase their efficiency, reduce costs, improve quality and thus gain a competitive advantage. Take the time to define, measure and continuously monitor your process metrics. Use this data to identify weaknesses, make improvements and continuously optimize your processes. By selecting and applying the right process metrics in a targeted manner, you can increase the performance of your company and ensure long-term success.