Hi to all my seniors,
Yesterday, a friend of mine had his job interview. He is an MBA in supply chain management. A question in his interview was about his KPIs (Key Performance Indicators), and he got confused. He didn't know what the answer to this question should be to impress the interviewer. Can one of my seniors or experts provide a good answer to this question?
From Pakistan, Karachi
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1Yesterday, a friend of mine had his job interview. He is an MBA in supply chain management. A question in his interview was about his KPIs (Key Performance Indicators), and he got confused. He didn't know what the answer to this question should be to impress the interviewer. Can one of my seniors or experts provide a good answer to this question?
From Pakistan, Karachi
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KPI’s depend upon the job description and thus no one can a precise answer without knowing that. Have a nice day. Simhan Chief Advisor, Promentor-consulting
From United Kingdom
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From United Kingdom
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Dear Hammad,
KPI is a basic knowledge in any discipline of management, let alone SCM. I am a little surprised that after completing his MBA in SCM, he got confused with the question. Anyway, you can check my previous reply regarding KPIs for the purchase department:
https://www.citehr.com/315735-kra-purchase-department-manufacturing-industry.html#post1704402
Thanks,
Dinesh V Divekar
Beware of false knowledge; it is more dangerous than ignorance.
From India, Bangalore
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KPI is a basic knowledge in any discipline of management, let alone SCM. I am a little surprised that after completing his MBA in SCM, he got confused with the question. Anyway, you can check my previous reply regarding KPIs for the purchase department:
https://www.citehr.com/315735-kra-purchase-department-manufacturing-industry.html#post1704402
Thanks,
Dinesh V Divekar
Beware of false knowledge; it is more dangerous than ignorance.
From India, Bangalore
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Dear Mr. Hammad,
To my knowledge, I wonder whether your friend has understood the meaning of KPI and how it's related to his job profile. There is nothing to worry about when one has no information or knowledge about it. Your friend should have done a little homework before appearing for the interview.
I have no idea if any universities are covering KPI/KPA/KRA, PMS, BSC, etc., in their course modules.
Mr. Simhan correctly pointed out that KPI is associated with job description. KPA/KRA is based on the job or project assigned, defining "targets/goals to be achieved" or "project to be completed within a specific time."
With profound regards
From India, Chennai
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To my knowledge, I wonder whether your friend has understood the meaning of KPI and how it's related to his job profile. There is nothing to worry about when one has no information or knowledge about it. Your friend should have done a little homework before appearing for the interview.
I have no idea if any universities are covering KPI/KPA/KRA, PMS, BSC, etc., in their course modules.
Mr. Simhan correctly pointed out that KPI is associated with job description. KPA/KRA is based on the job or project assigned, defining "targets/goals to be achieved" or "project to be completed within a specific time."
With profound regards
From India, Chennai
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KPI ie Key performance area: Functions to be performed by the employee Like KPI for Sales Executive: Contacting potential customers Markey Survey for new product
From India, Gurgaon
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From India, Gurgaon
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Dear Friends,
Minimum KPIs for SCM/Purchase are as follows:
a) Number of PR/PO received, actions taken, and pending PR
b) Lead time taken to produce the material and services
c) Reduction in cost of procurement material and services (without compromising the quality)
d) Quality complaints from users and actions taken (keep records), and services providers
e) Complaints from vendors/service providers, actions taken from our side
f) Inter-personal relations
g) 5S
Regards,
Sanjay Nagore
GM-HR
Gurgaon
Mobile No. +919810653916
From India, Gurgaon
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Minimum KPIs for SCM/Purchase are as follows:
a) Number of PR/PO received, actions taken, and pending PR
b) Lead time taken to produce the material and services
c) Reduction in cost of procurement material and services (without compromising the quality)
d) Quality complaints from users and actions taken (keep records), and services providers
e) Complaints from vendors/service providers, actions taken from our side
f) Inter-personal relations
g) 5S
Regards,
Sanjay Nagore
GM-HR
Gurgaon
Mobile No. +919810653916
From India, Gurgaon
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Dear Friends,
I would like to comment on why they have become confused. It is because they were not aware of the terminology; however, the question was good. If one has set their goal in Supply Chain Management (SCM), then they should have a clear objective to satisfy the interviewers. Why has he selected SCM as a career? Secondly, one must familiarize themselves with the terminology they are going to encounter. Of course, after working, one can assess but must be able to identify the prospects.
Regards,
Arun
From India, Delhi
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I would like to comment on why they have become confused. It is because they were not aware of the terminology; however, the question was good. If one has set their goal in Supply Chain Management (SCM), then they should have a clear objective to satisfy the interviewers. Why has he selected SCM as a career? Secondly, one must familiarize themselves with the terminology they are going to encounter. Of course, after working, one can assess but must be able to identify the prospects.
Regards,
Arun
From India, Delhi
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dear friends . what i would like to tell is that KPI is the work that has been done in the last job which means that describes the job description the strengths that have u come up.
From India, Hyderabad
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From India, Hyderabad
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That interviewer was asking the person’s KPI’s and not the KPI’s of job i think...........should he have said that he is hardworking, optimistic , committed etc..... ?
From Pakistan, Karachi
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From Pakistan, Karachi
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Dear Hammad, Thank you for clarifying. For personal KPI’s see Then the job for which your friend was being interviewed is immaterial.
From United Kingdom
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From United Kingdom
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Dear Sanjay,
Of the list of KPIs that you have given for Procurement, (f) and (g) cannot be KPIs as these are not SMART. Secondly, KPI (c) has to be linked with sales revenue.
Thanks,
DVD
Dear Friends,
Minimum KPI's for SCM/Purchase are as follows:
a) Number of PR/PO received, actions taken, and pending PR
b) Lead time taken to produce the material and services
c) Reduction in cost of procurement material and services (without compromising the quality)
d) Quality complaints from users and actions taken (keep record) and services providers
e) Complaints from vendors/Service Providers from our side and actions taken
f) Inter-Personal Relations
g) 5S
Regards,
Sanjay Nagore GM-HR Gurgaon Mobile No. +919810653916
From India, Bangalore
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Of the list of KPIs that you have given for Procurement, (f) and (g) cannot be KPIs as these are not SMART. Secondly, KPI (c) has to be linked with sales revenue.
Thanks,
DVD
Dear Friends,
Minimum KPI's for SCM/Purchase are as follows:
a) Number of PR/PO received, actions taken, and pending PR
b) Lead time taken to produce the material and services
c) Reduction in cost of procurement material and services (without compromising the quality)
d) Quality complaints from users and actions taken (keep record) and services providers
e) Complaints from vendors/Service Providers from our side and actions taken
f) Inter-Personal Relations
g) 5S
Regards,
Sanjay Nagore GM-HR Gurgaon Mobile No. +919810653916
From India, Bangalore
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hello, your key performance indicators are your skills, talent, knowledge, ability to take any challenge put in front of you. so start facing your problems.
From India, Chandigarh
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From India, Chandigarh
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Hi Savita,
Greetings!
The KPIs are as follows:
a) Timely providing manpower
b) Reduce recruitment cycle time
c) Reduce recruitment administrative cost
d) Timely providing manpower
e) Meeting deadlines
f) JD formulation for all positions
g) Agreement availability with all consultants
h) 100% of job portals for closing the vacancies
i) Reference check for all positions
j) Offer letter/Appointment letter issued to the new joiners
k) Proper induction & joining formalities
Regards,
Sanjay Nagore
GM-HR
Mobile No: +919810653916
From India, Gurgaon
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Greetings!
The KPIs are as follows:
a) Timely providing manpower
b) Reduce recruitment cycle time
c) Reduce recruitment administrative cost
d) Timely providing manpower
e) Meeting deadlines
f) JD formulation for all positions
g) Agreement availability with all consultants
h) 100% of job portals for closing the vacancies
i) Reference check for all positions
j) Offer letter/Appointment letter issued to the new joiners
k) Proper induction & joining formalities
Regards,
Sanjay Nagore
GM-HR
Mobile No: +919810653916
From India, Gurgaon
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Dear friend,
Your friend working in the Supply Chain Management (SCM) department can measure his Key Performance Indicators (KPIs) by focusing on the non-stoppage of manufacturing, stock value based on ABC Analysis, and FSN analysis. The stock value can be quantified in terms of the number of days.
IJR
From India, Madras
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Your friend working in the Supply Chain Management (SCM) department can measure his Key Performance Indicators (KPIs) by focusing on the non-stoppage of manufacturing, stock value based on ABC Analysis, and FSN analysis. The stock value can be quantified in terms of the number of days.
IJR
From India, Madras
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Hi Dear Hammad,
The whole thing is about how a person would show/indicate his performance? The individual should have understood the question first, analyzed, and correlated it to his talent, ability, knowledge, and experience to answer this question.
Thanks and regards,
Bijay
From India, Vadodara
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The whole thing is about how a person would show/indicate his performance? The individual should have understood the question first, analyzed, and correlated it to his talent, ability, knowledge, and experience to answer this question.
Thanks and regards,
Bijay
From India, Vadodara
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His KPIs are supposed to be as follows:
1. Inventory management through optimization of inventory.
2. Developing suppliers to improve their delivery performance.
3. Zero part shortages or production loss.
4. Zero dead stock.
5. Zero mismatch between actual and ERP stock; unexplained mismatches.
6. To quantify and achieve a high level of inventory turnover ratio.
Although the scope of SCM is very vague, the major focus is on inventory control. Inventory management is a never-ending job.
Sanjeev
Toyota Kirloskar
From India, Delhi
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1. Inventory management through optimization of inventory.
2. Developing suppliers to improve their delivery performance.
3. Zero part shortages or production loss.
4. Zero dead stock.
5. Zero mismatch between actual and ERP stock; unexplained mismatches.
6. To quantify and achieve a high level of inventory turnover ratio.
Although the scope of SCM is very vague, the major focus is on inventory control. Inventory management is a never-ending job.
Sanjeev
Toyota Kirloskar
From India, Delhi
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i m here seating infront of you ,n giving this interviw is my first stage of succes which is due to the my past achievments this indicates my key performance...........
From India, Pune
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From India, Pune
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Dear Mr. Hammad,
KPI's full form is KEY PERFORMANCE INDICATORS. You have a team of 10 people headed by GM - Marketing, which handles 3 products. Now the target for the GM is selling 900 units of 3 products. 3 persons per product and each person has to sell 100 units of the allocated product to him. This is their primary KPI, and other than that, there may be other performance indicators like on average in how many days they are getting the payments and what can be the target. Also, in how many days they are getting the necessary forms/issuing the necessary statutory forms and what can be the target. The GM's KPI will also include what is the percentage of realization (selling price - cost price) and what is the target. The essence is you plan for performance and try to achieve that or surpass that. As what is expected of you is told at the beginning of the year itself, it is not very difficult to plan your goals. Similarly, in SCM (comprising Procurement, vendor development, Logistics, inventory management), your friend has to find out what are the indicators of performance which showcase/justify his existence in the company.
Thanks & regards,
S. Ganapathy
From India, Hyderabad
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KPI's full form is KEY PERFORMANCE INDICATORS. You have a team of 10 people headed by GM - Marketing, which handles 3 products. Now the target for the GM is selling 900 units of 3 products. 3 persons per product and each person has to sell 100 units of the allocated product to him. This is their primary KPI, and other than that, there may be other performance indicators like on average in how many days they are getting the payments and what can be the target. Also, in how many days they are getting the necessary forms/issuing the necessary statutory forms and what can be the target. The GM's KPI will also include what is the percentage of realization (selling price - cost price) and what is the target. The essence is you plan for performance and try to achieve that or surpass that. As what is expected of you is told at the beginning of the year itself, it is not very difficult to plan your goals. Similarly, in SCM (comprising Procurement, vendor development, Logistics, inventory management), your friend has to find out what are the indicators of performance which showcase/justify his existence in the company.
Thanks & regards,
S. Ganapathy
From India, Hyderabad
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KPIs - Key Performance Indicators & KRAs - Key Result Areas are one and the same. Normally, this varies from organization to organization; every company will have its preset Mission and Vision in the business arena.
In my experience, it is usually the staff at the operational end [i.e., trainee, Jr. Exe., Exe., Sr. Exe.] who will be given their day-to-day role and responsibilities as per their designation and area of operation.
But as the responsibility of the individual increases due to appraisal & promotions, there will be changes in the level of designation [i.e., Team Lead, Project Lead, Asst. Mgrs, Managers]. It is at this stage that the staff will be given their KPIs or KRAs to perform and will vary from designation to designation.
When the reporting structure changes and they report to a higher authority such as Head, VP, Director, CEO, they have to ensure that their KRIs & KRAs match their performance and comply with business standards.
It will then be seen in the Monthly Dashboard meetings & senior managers meetings that their performance will be calculated based on their KPIs and KRAs - thus ensuring profitability & growth of the business.
I do not want to further expand on this as it will consume many hours of explanation.
Thank you,
Ashley
Sr. Organizational Development Manager
From India, Madras
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In my experience, it is usually the staff at the operational end [i.e., trainee, Jr. Exe., Exe., Sr. Exe.] who will be given their day-to-day role and responsibilities as per their designation and area of operation.
But as the responsibility of the individual increases due to appraisal & promotions, there will be changes in the level of designation [i.e., Team Lead, Project Lead, Asst. Mgrs, Managers]. It is at this stage that the staff will be given their KPIs or KRAs to perform and will vary from designation to designation.
When the reporting structure changes and they report to a higher authority such as Head, VP, Director, CEO, they have to ensure that their KRIs & KRAs match their performance and comply with business standards.
It will then be seen in the Monthly Dashboard meetings & senior managers meetings that their performance will be calculated based on their KPIs and KRAs - thus ensuring profitability & growth of the business.
I do not want to further expand on this as it will consume many hours of explanation.
Thank you,
Ashley
Sr. Organizational Development Manager
From India, Madras
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Cpm - Key Performance Indicators - D Parmenter (John Wiley & Sons) - 2007 [0470095881]-1. pdf
Key performance indicators (KPI).doc