Overview of Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs) are those metrics used by organizations to track and measure the performance or success of quantifiable values. KPIs can be used by individuals, businesses, facilities, and organizations to keep track of how close or far away they are to completing their goals. These goals can be process related, tied to efficiency or production, or related to an organization's finances, among a number of other useful metrics. KPIs should be selected in consideration of an organization’s overall goals. They should also be specific so that everyone within the organization is aware of exactly what they are attempting to measure
- Reliability KPIs such as amperage draw on a machine,
- Fixed equipment reliability KPIs such as leaks, overdue inspections, and exceedances of Integrity Operating Window limits,
- The frequency of a Fitness for Service (FFS) assessment (Level 1, Level 2, or Level 3),
- Number of inspectors per vessel,
- Number of unscheduled shutdowns related to the fixed equipment reliability program,
- Inhibitor performance, perhaps by corrosion rate measurement; and,
- Risk-based inspection implementation
One important thing to remember about KPIs is that they are not ends unto themselves. Each KPI should be tied into the organization's overall goals, but they are not themselves the goal. It’s also important to note that every organization is different, thus every organization will have different goals and different indicators of performance. Just because a KPI metric works for one company, doesn’t mean it will work for another.
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Data, in pure form, consists of raw, unorganized facts that need to be processed. Data can be found in databases, documents, drawings, reports, spreadsheets, and numerous other sources. Having data on hand is useful, however, it’s often inefficient and counterproductive to make decisions based on data in its raw form.
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BlogOctober 21, 2015 By Nick Schmoyer at Inspectioneering
Toward the end of last year, Inspectioneering conducted a survey with the goal of answering the following question: "How many pressure vessels do facilities have compared to the number of inspectors responsible for them?" The answer to this question is an important metric for developing proper plant inspection staffing numbers. Inspection managers, among other facility decision-makers, may benefit by knowing this ratio relative to what exists at their own site.
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November/December 2014 Inspectioneering JournalBy Greg Alvarado at Inspectioneering Journal, and Michael O. Nichols at Marathon Petroleum Company
Key Performance Indicators or KPIs are important for businesses to track measurable progress, or a lack thereof, as compared to pre-defined goals or benchmarks. For those of us in the inspection, fixed equipment reliability world, the same holds true. Often the efficacy of our inspection programs is measured against such goals.
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BlogSeptember 16, 2013 By John Reynolds at Intertek
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BlogMay 13, 2013 By Greg Alvarado at Inspectioneering Journal
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BlogApril 29, 2013 By Greg Alvarado at Inspectioneering Journal
This is my second of three posts on Key Performance Indicators (KPIs) based on requests and discussions on the issue.  In part 1 of this series I provided a brief overview of KPIs and their ability to predict good, poor, and sometimes dangerous performance in our quests to achieve certain objectives and goals.
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BlogApril 22, 2013 By Greg Alvarado at Inspectioneering Journal
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March/April 2013 Inspectioneering JournalBy Greg Alvarado at Inspectioneering Journal
A pattern of requests for key performance indicators (KPIs) related to equipment integrity management (IM) programs has appeared on Inspectioneering’s LinkedIn group discussion as well as other industry forums. Furthermore, the topic came up numerous times at the recent API Inspection Summit. Performance is the key.
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July/August 2012 Inspectioneering JournalBy John Reynolds at Intertek
This is the last out of the ten articles in this series. Clearly, Continuous Improvement (CI) has a major role in achieving excellence in PEI&R. All the advances we’ve made over the years in achieving excellence in PEI&R stems from our continuous improvement programs to apply new and better techniques and methods by learning from what has already occurred.
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September/October 2010 Inspectioneering Journal
This recommended practice (RP) identifies leading and lagging process safety indicators useful for driving performance improvement and includes mechanical integrity related items. As a framework for measuring activity, status, or performance, this document classifies process safety indicators into four tiers of leading and lagging indicators. Tiers 1 and 2 are suitable for nationwide public reporting and Tiers 3 and 4 are intended for internal use at individual sites. Guidance on methods for development and use of performance indicators is also provided.
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