Operations Management KPIs Examples

KPIs Examples Operations Management

Operations management KPIs examples

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The operational KPIs are mostly used to quantify the value of business performance in a certain timeline.

It is mainly used to improve efficiency, track organizational processes and help to evaluate reflect on the outcomes in the business. These specific metrics and KPIs are used to measure, calculate and evaluate different business dimensions.

So, it is important to choose the right portion for the right business to ensure expected outcomes. Some of the most important KPIs are mentioned below for better understanding:

Costs Per Click

The urge to establish operational metrics and to track their efficiency can create valuable results in any marketing campaign both above the line and below the line. The Cost per Click is an operational metric that creates a standard model of pricing for online advertising.

These metrics help us to focus the ad with the lowest price with a deep impact. It is a precious method which can be used as an important operational metric.

Cost Per Acquisition

The Cost per Acquisition is a performance-based metric to determine the concentration of the price for customers but not the clicks. This indicator reflects the outcomes of a campaign. It also establishes future processes more valuable and significant.

Overtime Hours (Human Resources)

One of the most important operational KPI that can measure the impact of absence rate. This also showcases the management skills applied under pressure. This performance indicator can be interpreted differently, so it should be observed in detail.

Absence Rate (Human Resources)

This metric is considered upon the engagement of the total employees. This extremely important HR KPI concentrates on the main workforce actions to establish a better HR strategy. The total sum of employees who are sick, missing work can determine the impact on the organization will face in the long run.

Lead Conversion Ratio (Sales)

In the sales portion, the most important sales KPI is the Lead Conversion Ratio. It counts the actual paying customers. By applying this method, you can understand how many leads you require to maintain a healthy outcome from sales.

Lead Opportunity Ratio (Sales)

The Lead-to-Opportunity ratio gives you the insights into the number of leads on sales needed to ensure a healthy revenue. For being the first part of the sales funnel, it is easy to calculate the ratio of successful leads turned into potential customers.

Transportation Cost & Delivery Time (Logistics)

This standard logistics KPI is measured from the beginning of the order is placed to the moment it is delivered. If you can measure the delivery hours, it is better for the customers to know when they have to pick the package. This process helps to increase order picking accuracy rate.

On the other hand, the average transportation costs are calculated based on all expenses involved in the processing of an order.

It breaks down the costs related to logistics KPI according to certain categories, such as the administrative, the order processing, inventory carrying, the warehousing, and the actual transportation costs. This calculation helps you to evaluate if this project is within the budget.

Functional use of all the operational metrics and KPIs, can establish sustainable development and can be more effective to track the performance and growth of a company.

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