Defining KPI structures
Define KPI structures to create parent/child relationships between KPIs. The scores for child KPIs roll up to all of the children’s parents. For example, you create a parent KPI to measure the overall efficiency of a production department during a month. You associate the parent KPI with child KPIs whose scores will roll up to the score for the parent KPI. One child KPI measures the number of units that the production line produces during a month. A second child KPI measures the maintenance costs for a production line during a month.
Each of the child KPIs must be assigned a weight based on their importance, and the sum of all child KPIs assigned for a parent KPI must be equal to 100. The system uses the value assigned for the weight of a child KPI to translate the normal score for a child KPI when rolling the score up to a parent KPI. For example, when calculating the score for the parent KPI, you consider the number of units produced to be more important than the number of maintenance dollars spent. Therefore, you assign a weight of 70 for the number of units produced and a weight of 30 to the maintenance dollars spent.
To define KPI structures: