What is KPI – Key Performance Indicator?
A select number of key measures that enable performance to be monitored against targets.
Purpose of KPIs
The KPI will indicate how well the facility or an asset is doing at attaining its goals, design intent or standards. KPIs help establish quality standards by reporting on variances.
Why are KPIs Important?
There are many reasons, of course, but here are 4 that stand out to me:
- KPIs strengthen employee morale
- KPIs support and influence business objectives
- KPIs foster personal growth
- KPIs are critical for performance management
Importance of KPI in asset management
The purpose of asset management is to cultivate market value so that investments can boost returns. You want to maximize yields as an Asset Manager and ensure that market values for investors continue to grow. By maximizing the value of each rental property, you may need to keep an eye on certain asset management KPIs when focusing on the longer-term, strategic overall picture. These can assist you to track changes more quickly and make reporting easier. Asset Management KPIs can support the expenditure reduction process, finding the most consistent and highest revenue sources, and mitigating liability and risk.
Optimizing the management of a maintenance department directly affects the volume of tasks it can perform preventively and those performed in the corrective. On many occasions, these tasks depend on the ability and knowledge of the manager to carry out a correct planning of the preventive plans, as well as the correct resolution of the corrective works carried out by their maintainers. Retain tools help managers to improve their skills and decision making related to their area of responsibility, such as supplier evaluation, asset analysis, etc.
What are the benefits of Asset Management Firm metric:
- Measuring total amount of managed funds will help understand growth perspectives and current situation in the firm.
- Risks are inevitable in this business, so indicators like fund allocated for security purposes are important.
- Growth of a company is measured through KPIs such as number of overseas investors or number of companies an asset management firm is present in.
Most of the time, in maintenance, KPIs are grouped into 6 categories. It is usual that the indicators we work with can fit into several of these categories simultaneously:
- Availability indicators.
- Functional indicators.
- Cost indicators.
- Reliability indicators.
- Materials management indicators.
- Work order management indicators.
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