> Defining KPI Ranges

Define KPI ranges to specify a High value and a Low value for each of the scoring ranges defined for a KPI. Specify a Normal score that corresponds with each high and low value for a KPI range. Datastream 7i rolls up the normal score for a child KPI to any parent KPIs when calculating the Current score and Normal score for the parent KPIs.

For example, a child KPI measures the productivity of a production line during a month. The target goal for the KPI is 200,000 units per month. If the production line produces between 200,000 to 133,333 units per month, the normal score for the KPI is 3, which indicates an excellent score. 133,332 to 66,666 units is 2, which indicates an average score. 66,665 units or less is 1, which indicates a poor score.

 

   You should maintain consistency when defining normalized scores for KPI ranges. For example, if you define a normalized score based on a scale of 1 to 3 for one KPI, you should use that same scale for other KPIs.

Since KPIs can be measured based on different units of measurement, Datastream 7i must translate the score for a child KPI to a normal score for the calculation of the score for any parent KPIs based on the weight assigned for the child KPI when defining KPI Structures.

For example, the normal score for one child KPI measuring maintenance dollars for a production line is 2.4 and has a weight of 30. The normal score for the second child KPI measuring the number of units produced is 2.9 and has a weight of 70. Datastream 7i calculates the normal score for the parent KPI as follows:

((30 ´ 2.4) + (70 ´ 2.9)) / 100 = 2.75

 

   Specify values for High value and Low value for KPI ranges for parent KPIs that correspond to the values specified for child KPIs. For example, if your child KPIs are based on a scale of 1 to 3, you should base the score for the parent KPI on the same scale.

Follow these steps to define KPI ranges.

Open the Defining KPI entries form (BMKPIC).

Query for the KPI for which to define KPI ranges.

Click the KPI ranges tab. Datastream 7i displays the KPI ranges page.

Low value—Enter the value for the low threshold of the KPI range.

High value—Enter the value for the high threshold of the KPI range.

Normal score—Enter the numeric value that represents the score for the KPI range based on the values entered for Low value and High value.

Description—Enter a description of the icon to be displayed for the KPI in the balanced scorecard.

Icon—Enter the icon to be displayed for the selected KPI range in the balanced scorecard.

Choose File | Save from the menu bar. Datastream 7i saves the information to the database.