1. Key Performance Indicators David Carleton Practice Director for Manufacturing and Distribution TARGIT Business Intelligence

2. About TARGIT Business Intelligence The OODA Loop KPI Definition KRIs vs. KPIs Manufacturing Example How does BI help? Q&A Agenda

3. About TARGIT  Danish BI company with offices in Denmark, Tampa, and Boston  Founded in 1986  Certified Microsoft Partner  Included in Gartner’s Magic Quadrant for Business Intelligence and Analytics  Specialized in BI and Analytics for Microsoft NAV and AX  Over 300,000 named users and 5,000 customers worldwide  Mentioned in BARC’s BI Survey as the world’s leading OLAP analysis vendor in the fields of Innovation, Visual Analysis & Data Discovery, and Cloud BI

4. What Is Business Intelligence?  The ability to harness all of your data to empower individuals and companies to make better decisions  A decision-making framework to enable fact based, single version of the truth decisions.  Continuity of analytics & reporting across a multitude of platforms to harness your decision making is The Power of Business Intelligence!

6. Observation Dashboards Reports Agents Orientation Analysis Simulation Decision Based on Facts Use all available information Action Changes Communication Reaction/Action All features developed with the action loop in mind

7. Typical Manufacturer/Distributor ERP CRM WMS WES WCS TMS YMS MRP MRPII Robotics PLC MES Shop Floor HR Marketing

8. Steps to becoming a data-driven organization  Know what you want to measure – list what you believe the data in your organization can answer  Gather your data sources – figure out where to find the answers.  Get everybody on the same page – there's room for for every department to improve efficiencies  Do it on your terms - data-driven organizations aren’t confined by reporting cycles and pre-configured KPIs  Go outside and play - realize that not all useful data belongs to your business

9. The OODA Loop Internal External

10. Key Performance Indicators A set of measures focusing on those aspects of organizational performance that are the most critical for the current and future success of the organization. David Parmenter, Key Performance Indicators

11. Key Result Indicators (KRIs): How you have done in perspective of a critical success factor. (Gartner’s Lagging Indicators) Result Indicators (RIs): Tell you what you have done Performance Indicators (PIs): Tell you what you do Key Performance Indicators (KPIs): Tell you what to do to increase performance dramatically. (Gartner's Leading Indicators) Four Types of Performance Measures

12. KRIs RIs PIs KPIs

13. KRIs vs. KPIs  80% of existing performance monitoring is behind KRIs. KRIs (Lagging Indicators) include: Customer Satisfaction Net Profit before tax Customer Profitability Employee Satisfaction Return on Capital Employed KPIs (Leading Indicators) include: Order Picking Accuracy Internal Order Cycle Time On-time Delivery Carrying Cost of Inventory Order Fill Rate  It all comes to what is critical to your business, and what key measures affect it.

14. Opportunity Gap vs. Performance Gap “If you're only addressing the performance gaps in your company and aren't also focusing on the opportunity gaps, you're dead in the water.” Morten Sandlykke TARGIT CEO

16. Manufacturing Example Overall Equipment Effectiveness –Availability –Performance –Quality

17. Overall Equipment Effectiveness AvailabilityPerformance Quality (FPY)

18. KPI Comparison Risk OEE FactorShift 1Shift 2 Availability90%95% Performance95% Quality99.5%96% OEE85.1%86.6% Companies typically wouldn’t prefer Shift 2 (even though it has a higher OEE than Shift 1). This because it’s hard to choose to gain 5 points behind availability, trading off 4 points in Quality

19. Opportunity Gap vs. Performance Gap “If you're only addressing the performance gaps in your company and aren't also focusing on the opportunity gaps, you're dead in the water.” Morten Sandlykke TARGIT CEO

20. How does BI Help?

21. Monitor your KPIs and KRIs for you, automatically Automatically forecast trends and future results Get automatic alerts when KPIs move out of a set threshold Act on your data with one click Mobility support to track your business on the fly Self-service analytics Data Discovery And much more... Out of the box Measures and KPI monitoring

22. Want to learn more? Check out www.targit.com  Visit our new blog with a KPI series done with David Parmenter: http://www.targit.com/en/blog/profiles/david-parmenterhttp://www.targit.com/en/blog/profiles/david-parmenter  Read our eBooks and whitepapers related to KPIs on our BI Library: http://www.targit.com/en/resources/ebooks/ebooks http://www.targit.com/en/resources/ebooks/ebooks  Register to sign up for Decision Day, an event focused on inspiration to make better fact based decisions: http://www.targit.com/en/meet-targit/events/events/2014/decisionday http://www.targit.com/en/meet-targit/events/events/2014/decisionday  Leave your business card with me and get a free copy of David’s Parmenter book: Key Performance Indicators or Morten Middelfart’s book: CALM (Computer Aided Leadership & Management)

23. Thank You Questions David Carleton Practice Director for Manufacturing and Distribution dc@targit.com

24. Thank you! Questions? Dave Carleton dc@targit.com