1. Calculating Key Performance Indicators ENGINUITY TUTORIAL Copyright Virtual Management Simulations

2. Calculating Key Performance Indicators The Company is now in period 9, but how were the performance indicator weightings calculated at the end of period 8 ?

3. Calculating Key Performance Indicators Navigate to "Main menu/Assessing performance/Financial analysis/Financial performance" Turnover Using the Performance (all periods) tab, the turnover :-  During the History (periods 1-4) was 11,944,107  To date (periods 1-8) has been 59,330,018 To compare fairly the turnover to date with the Historical benchmark, which is based upon one year, we need to work out the average per year, which is 29,820,203 (59,330,018 / 2). The yearly average by the end of period 8 was 2.484 times (29,665,009 / 11,944,107) the value at the end of the History. This improvement is reflected in an increase in the turnover performance indicator from 40, the initial weighting, to 99 (40 x 2.484).

4. Calculating Key Performance Indicators Navigate to "Main menu/Assessing performance/Financial analysis/Financial performance" Gross Profit to Turnover Using the Performance (all periods) tab, the gross profit/turnover :-  During the History (periods 1-4) was 0.0531 (634,518 / 11,944,107)  To date (periods 1-8) has been 0.0462 (2,742,250 / 59,330,018) The ratio at the end of period 8 was 0.87 (0.0462 / 0.0531) times the value at the end of the History. This deterioration is reflected in a decrease in the gross profit to turnover performance indicator from 130, the initial weighting, to 113 (130 x 0.87.

5. Calculating Key Performance Indicators Navigate to "Main menu/Assessing performance/Financial analysis/Financial performance" Operating Profit to Turnover Using the Performance (all periods) tab, the operating profit/turnover :-  During the History (periods 1-4) was 0.0175 (209,511 / 11,944,107)  To date (periods 1-8) has been 0.013 (772,612 / 59,330,018) The ratio at the end of period 8 was 0.743 (0.013 / 0.0175) times the value at the end of the History. This deterioration is reflected in a decrease in the operating profit to turnover performance indicator from 130, the initial weighting, to 97 (130 x 0.743).

6. Calculating Key Performance Indicators Navigate to "Main menu/Assessing performance/Financial analysis/Financial performance" Company Value Using the Performance (all periods) tab, the company value :-  at the end of the History was 4,718,846  at the end of period 8 was 4,967,423 The value at the end of period 8 was 1.052 times the value at the end of the History. The improvement was reflected in an increase in the company value performance indicator from 170, the initial weighting, to 179 (170 x 1.052).

7. Calculating Key Performance Indicators Navigate to "Main menu/Assessing performance/Financial analysis/Financial performance" Capital Employed After bids have been processed, the forward workload of the company expressed as a % of the upper limit of workload that can be undertaken, based upon the company’s capital base, is the capital employed. Using the Performance (all periods) tab, the average capital employed :-  For the History (periods 1-4) was 31.5% (126 / 4)  To date (periods 1-8) has been 60.13% (481 / 8) The value at the end of period 8 was 1.91 times the value at the end of the History (60.13 / 31.5). This improvement is reflected in an increase in the capital employed performance indicator from 120, the initial weighting, to 229 (120 x 1.91).

8. Calculating Key Performance Indicators Navigate to "Main menu/Assessing performance/Job analysis/All jobs identified" Contract Completion Using the All jobs identified option the number and size of jobs completed since the History is established. Each completed job is given a score depending upon the completion status (early, on time or late) and job size. Scores are negative where jobs complete late, but positive for jobs that complete early and on time. The total calculated is added to the initial indicator weighting at the end of the History to give the current indicator value. In this example the completed jobs created a score of 50, which when added to the starting point of 100, gives an indicator value of 150 at the end of period 8.

9. Calculating Key Performance Indicators Navigate to "Main menu/Assessing performance/Financial analysis/Financial performance" Forward Workload Using the Performance (all periods) tab, the forward workload :-  At the end of the History was 15,857,350  At the end of period 8 was 28,184,010 The value at the end of period 8 was 1.777 times the value at the end of the History. The improvement was reflected in an increase in the forward workload performance indicator from 70, the initial weighting, to 124 (70 x 1.777).

10. Calculating Key Performance Indicators Navigate to "Main menu/Assessing performance/Financial analysis/Financial performance" Forward Margin Using the Performance (all periods) tab, the forward margin :-  At the end of the History was 597,489  At the end of period 8 was 936,830 The value at the end of period 8 was 1.568 times the value at the end of the History. The improvement was reflected in an increase in the forward workload performance indicator from 100, the initial weighting, to 157 (100 x 1.568).

11. Calculating Key Performance Indicators Navigate to "Main menu/Assessing performance/Financial analysis/Financial performance" Share Price Using the Performance (all periods) tab, the share price :-  At the end of the History was 1.16  At the end of period 8 was 1.38 The value at the end of period 8 was 1.19 times the value at the end of the History. The improvement was reflected in an increase in the share price performance indicator from 70, the initial weighting, to 83 (70 x 1.19).

12. Calculating Key Performance Indicators Client Satisfaction To gain a feel for the relationship with each client, a textual description is given. The description is based upon a numerical value (hidden) determined by a number of factors, including prequalification, procurement and job progression. The sum of the numerical values across all clients is calculated for the relationship changes since the History, and then added to the performance indicator weighting at the end of the History. In this example the numerical value during periods 5-8 came to 96. This was added to the initial rating of 70 to give an indicator of 166 at the end of period 8. The weightings used in calculating the client satisfaction values are hidden, but the relative affects of different factors that affect the client relationship are shown.