KPI is a word that comes from English and means key performance indicator.
What is a KPI?
A KPIit is a specific measure of an organization's performance in some area of its business. It is a general concept (essential for the management control), with different implementations depending on the type of business and the organization's objectives.
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Examples of key performance indicators can include things such as percentage of deliveries made on time, total inventory at a time given, distribution costs as a percentage of total sales, the accuracy of invoices sent to customers, or the delivery time of a product.
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Image: Krokodilkalle -> Wikipedia
The purpose of KPI It is to give a business measurable measurements of things that are proven to be important to its long-term success. Identifying the most important KPIs is the first step toward achieving greater profitability and efficiency for most companies. For KPIs to be useful, they must be consistently quantifiable, have an established correlation to the area of business in need of improvement, and not give false readings.
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