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Key Process Indicator


A KPI is most valuable when it does not change often Step2: How to collect data? Think about: Which ... – PowerPoint PPT presentation

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Title: Key Process Indicator

Key Process Indicator
  • Sonja de Bruin (
  • 8 mei 2010
  • Quality Assurance

  • How to use this presentation
  • Definitions
  • Step1 Definition ltKPIgt
  • Step2 How to collect data?
  • Step3 Calculation of the KPI
  • Step4 Validate metrics
  • Step5 Define targets
  • Step6 Improvement plan
  • Step7 Planning

How to use this presentation?
  • This presentation is a guide and template in one,
    which can be used by a KPI (Key Process
    Indicator)-owner to
  • Defining a Key Performance indicator
  • Setting up measurements to monitor the KPI
  • Setting up an improvement program (high level)

  • SW Metric a definition of a measurement,
    including what to measure, algorithms for
    calculations, and the measuring units, range,
    criteria, and frequencies
  • SW Key Performance Indicator a special kind of
    measurement, in general derived from a number of
    software metrics, indicating to what extent a
    certain target value or criteria are met

Step1 Definition ltKPIgt
  • Definition KPI ltDescribe the definition of the
    measurement. Including what to measure and the
    measuring units, range, criteria and how often
    the metric will be measuredgt
  • KPI owner ltfill in the name of the KPI ownergt
  • Think about
  • What will be included in the metric and what not?
  • A KPI must be derived from the business goals of
    the organisation
  • Is more than one metric necessary e.g. a metric
    per department, per root cause, per release?
  • Is there a common understanding about the metric
  • A KPI is most valuable when it does not change

Step2 How to collect data?
  • ltDescribe the procedure how to collect the datagt
  • Think about
  • Which steps have to be executed?
  • Can existing data be reused? Where can it be
  • Who is or will be responsible for collecting
  • Which server, PC, database, excel sheet, etc. is
    used? Where can it be found?
  • Can collection of data be automated?
  • Is the procedure maintainable?

Step3 Calculation of the ltKPIgt
  • ltDescribe how to calculate the KPIgt
  • Think about
  • Is the formula in line with the metric
  • How will the metric figures be presented?

Step4 Validate metrics
  • ltDescribe how you will validate the metricgt
  • Think about
  • Is it possible to collect and calculate the
  • Is the outcome as expected?
  • Are there problems you experienced calculating
    the metric?
  • Readjust the collection and/or calculation, if

Step5 Define target values
  • ltDescribe the target values of the KPI for
  • Think about
  • Define a feasible target value
  • Base the targets on the values measured during
  • Are there targets-in-between to keep focus?
  • Is the target value in line with business point
    of view?

Step6 Improvement plan
  • ltDescribe here the actions to be taken to meet
    the target value and what the expected effect of
    the improvement will begt
  • Think about
  • Explanation of the relation between the
    improvement actions and the expected effect on
    the metric
  • Due date of the actions to be taken?
  • Who is the owner of the actions?
  • Are there any risks?
  • How will the status of the actions be monitored?
  • What do you need from the organization to meet
    the targets?

Step7 Planning
  • Action Due date
  • Step1 Definition KPI ltdategt
  • Step2 How to collect data? ltdategt
  • Step3 Calculation of the KPI ltdategt
  • Step4 Validate metric ltdategt
  • Step5 Define target values ltdategt
  • Step6 Improvement plan ltdategt