Description

Description: These modules introduce students to the theory and applications of enterprise resource planning and operational systems and processes. A range of business decision analytics is covered in the course that has as their goal, optimizing economical use of resources and maximizing productivity and efficiency in the firm. Drawing on the recognizable tools, information technology and methods of operations management students will develop an understanding of enterprise planning, analytic models, deterministic methods of analysis, and scrutiny of results.

This course features dynamic and engaging video with audio narration, infographics and short quizzes to test your knowledge

Background: Performance measurement is a fundamental principle of management. The measurement of performance is important because it identifies current performance gaps between current and desired performance and provides indication of progress towards closing the gaps. Carefully selected key performance indicators identify precisely where to take action to improve performance.

What is an indicator?

An Indicator is a quantitative measure designed to monitor performance on an ongoing basis. An indicator acts as a 'flag' to alert staff to occurrences or events that warrant further review.

Input indicators are quantified and time-bound statements of resources to be provided. Information on these indicators comes largely from accounting and management records.

Process indicators measure what happens during implementation. Often, they are tabulated as a set of goals and metrics to be achieved.

Output indicators show the immediate physical and financial outputs of the project: physical quantities, organizational strengthening, and initial flows of services. They include performance measures based on cost or operational ratios.

Impact refers to medium or long-term developmental change. Measures of change often involve complex statistics about economic or social welfare and depend on data that are gathered from beneficiaries. Early indications of impact may be obtained by surveying beneficiaries' perceptions about project services. This type of leading indicator has the twin benefits of consultation with stakeholders and advance warning of problems that might arise.

Definition of Key Performance Indicators (KPIs)

KPIs are tools that may be used by an organization to define, measure, monitor, and track its performance over time toward the attainment of its stated organizational goals. Key Performance Indicators can be defined as "a set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals" (Klipfolio.com).

Regardless of which definition your organization adopts, the following factors should always be taken into account: The KPIs must …

• Reflect, and relate directly to, the organization's goals.
• Be quantitative and quantifiable.
• Be linked directly to the measurement of the organization's success.
It is essential when integrating the system and implementing ERP clear and defined KPIs are identified.