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How do Key Performance Indicators (KPIs) become part of the Business?

There are no standard KPIs for a business, unless you prescribe to the Oli Wight definition of a Class “A” MRPII user.  Oli had standards for what is the de facto definition of “Great” system.  (He defined the best users as Class “A”.  Those users had Inventory accuracy above 95%, Bill-of-Material Accuracy above 98%, Routing accuracy above 95%, on-time delivery performance above 95%, etc.)  You could adopt those definitions.  Regardless, defining what is important to your organization is the correct answer.  As a given though, for the ERP System to work effectively, Oli’s original list is the beginning point.  Users should expect that the department managers want the output of each group measured.  George Plossl (one of the fathers of MRP), trained me to understand that you do not control what you do not measure.  What are the operational events in which you want the organization to shine?  Those reports should be included in the KPIs for your organization.


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