Rully Agus Hendrawan eraha@is.its.ac.id

Business intelligence &

Data Warehouse

Measure Metrics KPI

Lecture

Disclaimer

• Private use only

• Don’t distribute this document along with its accompanying materials anywhere else

You cannot manage

what you do not measure

Measure:

evaluate or estimate• the nature,

• quality,

• ability,

• extent, or

• significance of;

to Measure =

to Count

Albert Einstein

"Not everything that counts can be counted,

and

not everything that can be counted counts."

Albert Einstein

"Not everything that counts can be counted,

and

not everything that can be counted counts."

Albert Einstein

"Not everything that counts can be counted,

and

not everything that can be counted counts."

"Not everything that counts can be counted,

“You cannot manage

what you do not measure”

"Not everything that counts can be counted,

I want to manage my employees

"Not everything that counts can be counted,

I want to manage my employees

I want to measure the performance of my employees

"Not everything that counts can be counted,

I want to manage my employees

I want to measure the performance of my employees

How can you count this?

Key Indicator

Performance of employees

• How many times he/she comes late

• % deadline

• % presence / absence

… etc

Key Indicator

Performance of employees

• How many times he/she comes late

• % deadline

• % presence / absence

… there’re many things that

can be counted …

Key Indicator

Performance of employees

• How many times he/she comes late

• % Deadline

• % Presence / absence

• … etc

… but, remember …

Albert Einstein

"Not everything that counts can be counted,

and

not everything that can be counted counts."

Albert Einstein

"Not everything that counts can be counted,

and

not everything that can be counted counts."

Eg.• How many stars in the sky?• How many hairs do you have on your head?

Albert Einstein

"Not everything that counts can be counted,

and

not everything that can be counted counts."

Why?

not everything that can be counted counts."

not everything that can be counted counts."

I want to manage my employees

NOT- important- significant- related

to/for our objective

Qualitative

• Non numerical data

• About quality

It counts but most likely can not be counted.

How to count Quality?

• Quantification!

Qualitative Quantitative

Quantitative

• Numerical data

• Easier to summarize and compare

It can be counted, but does it counts?

Scale / Level of Measurement

• Nominal

– Just Different

• Gender– MALE

– FEMALE

• Ordinal

– Can be ranked

• Socioeconomic status– High

– Medium

– Low

• How important is religion to you?– Not very

– Fairly

– Very

– Most

• Interval

– Can be ranked, Equal distance

– No absolute zero

• Fahrenheit temperature scale– 17-18 = 89-90

• IQ

• Ratio

– Nominal + Ordinal + Interval

– True Zero

• Age, Cash you’re carrying, Number of siblings, GPA

More about measurement

• ftp://ftp.sas.com/pub/neural/measurement.html

Samples (Warehouse / Stock)

• Google search, “warehouse performance metrics”, “warehouse performance indicators”,

• http://www.associatedcontent.com/article/937015/business_tips_performance_metrics_for.html?cat=3

• http://www.logisticsmgmt.com/article/CA6299814.html