3. MEASURING PERFORMANCE
3.1. Key Performance IndicatorsKey Performance Indicators (KPI's) are critical measures that provide for the ability to accurately measure the effectiveness of operational business processes such as Supply-Chain processes. A key element of a KPI is a Scorecard. By determining specific metrics that make up a KPI, one can measure the current operational efficacy of a business process. Defining many Key Performance Indicators and organizing them into a Scorecard can help an enterprise measure its overall effectiveness against specific, strategic business goals. Following the implementation of a new technology (such as RFID) and/or a re-engineering of a process enables the enterprise to observe the change in any given KPI to determine the operational impact (positive or negative) of change in the organization. 3.2. KPI Scorecard Development for EPC PilotsIt is critical to have a Scorecard developed before you begin a pilot. There are two distinct parts to the scorecard. The first focuses on ensuring the technology is capable of delivering reliable data and information. This then becomes the foundation for the second element which focuses on business results (KPI's). The critical enabler to demonstrating business value with EPC technology is to understand the current/actual work processes of the system being impacted and then to use the technology/data to develop specific EPC enabled work process changes that deliver improved business benefits. A key element for both parts of the Scorecard is the focus on baseline data and then comparing that to actual data after EPC is implemented. The Scorecard will continue to evolve and become more granular as it is being used for a specific application. KPI Scorecard Development for EPC Pilots 3.3. Questions to consider in Developing a EPC Business CaseBefore engaging in EPC it is critical to ask the organization key questions on where the benefit and value of using the technology will come from. It’s a simple quick list of questions to answer that will guide you on business case development. Questions to consider in Developing a EPC Business Case 3.4. Baseline Measures with EPCAs the business case for EPC is developed it is important to develop baseline data to compare results before and after EPC implementation. This tool provides a method to ensure that prior to implementation the data is collected and then later available to compare results (specific example shown relative to inventory). 3.5. Validation of EPC ResultsTo distinguish the unique value of EPC it is important to be able to determine what results are directly linked to EPC. This tool helps develop a process to clarify the process changes/results which are enabled due to EPC. |
