What is a KPI?
A KPI (Key Performance Indicator) is a measurable value indicating how effectively an organisation, process or system is performing against predetermined objectives.
KPIs help to steer, evaluate and improve performance at operational, tactical and strategic levels.
🎯 Why use KPIs?
- Insight into the performance of teams, processes or installations
- Monitoring of progress towards goals
- An objective basis for adjustment and decision-making
- Transparency within and between departments
📊 Examples of KPIs
| Domain | Example KPI |
|---|---|
| Production | OEE (Overall Equipment Effectiveness), scrap rate |
| Quality | Number of deviations per batch, defect rate |
| Maintenance | MTTR, failure frequency, uptime |
| Logistics | Delivery reliability, inventory turnover |
| Security (IT/OT) | Number of incidents, patch compliance, RTO/RPO |
| Energy management | Consumption per product unit, CO₂ emissions |
🧮 Good KPIs are…
- Specific – they measure exactly what matters
- Measurable – objective and quantifiable
- Acceptable – understandable and supported by stakeholders
- Realistic – ambitious yet attainable
- Time-bound – linked to deadlines or periods
(= the SMART principle)
📈 KPI vs. PI vs. KRI
| Term | Description |
|---|---|
| KPI | Critical metric for success |
| PI (Performance Indicator) | General performance metric |
| KRI (Key Risk Indicator) | Metric that signals risk |
📌 In summary
KPIs are indispensable steering instruments that make performance measurable and drive targeted improvement. They provide focus, accountability and continuous improvement in any domain — from production to Cybersecurity.