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Advice You - What is a Key Performance Indicator (KPI)?
A Key Performance Indicator (KPI) is neither a Goal, nor a Key Result Area (KRA), nor a Target, nor a Result nor a Critical Success Factor. And yet these terms are often used interchangeably with a KPI.
A KPI defines itself, to a large extent, by its name; it is a performan
A KPI defines itself, to a large extent, by its name; it is a performan
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
ce indicator, i.e. the performance of the process it is measuring should be clearly indicated by the KPI.
This should clarify that the purpose of a KPI is not, for example, to measure the risk of a process, nor its age, nor its length, but
This should clarify that the purpose of a KPI is not, for example, to measure the risk of a process, nor its age, nor its length, but
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ts performance.
Further, a KPI should be key, not just any casual measure of a process (or a business as a whole); this can be taken as the KPI being closely correlated with the objectives of the process being measured.
An important and of
Further, a KPI should be key, not just any casual measure of a process (or a business as a whole); this can be taken as the KPI being closely correlated with the objectives of the process being measured.
An important and of
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
en overlooked aspect of a KPI not contained within its name is that it measures a continuous or discrete but repeated process.
Typical continuous processes include manufacture (toothpaste production, widget manufacture) and service where the dimensions are large (credit man
Typical continuous processes include manufacture (toothpaste production, widget manufacture) and service where the dimensions are large (credit man
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
gement for large public utilities, help desk for large IT installations).
Sometimes services which look to be custom when considered at an individual level (your neighbour's knee surgery operation) can also be considered as almost continuous when considered at a coarse enou
Sometimes services which look to be custom when considered at an individual level (your neighbour's knee surgery operation) can also be considered as almost continuous when considered at a coarse enou
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
h level of granularity (knee surgery in Australia in the ‘90s).
Typical discrete, repetitive processes include service (PC installation, car sales and hotel check-in).
All of this ought to be self-evident, but it is common to see. For example, Target Completion Dates or Pr
Typical discrete, repetitive processes include service (PC installation, car sales and hotel check-in).
All of this ought to be self-evident, but it is common to see. For example, Target Completion Dates or Pr
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
oduct Specifications (or both) labelled as KPIs.
Where the intention is to measure once-off performance of a project, or as part of a business plan, a specification or target date (or both) will suffice; labelling it a KPI is both unnecessary and confusing.
Moreover, devel
Where the intention is to measure once-off performance of a project, or as part of a business plan, a specification or target date (or both) will suffice; labelling it a KPI is both unnecessary and confusing.
Moreover, devel
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ping only one off measures as a proxy for real KPIs puts a business at risk.
The implication of using one off performance measures in lieu of key performance indicators is that many organisations do not know how well they are performing. That is, until, a significant univer
The implication of using one off performance measures in lieu of key performance indicators is that many organisations do not know how well they are performing. That is, until, a significant univer
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
al lagging KPI such as profitability or lost time injury frequency ratio reaches unacceptable levels.
Lag, Current and Lead
Timing of KPIs, relative to achievement of corporate goals, is fundamental in choosing good candidate KPIs. Financial results, such
Lag, Current and Lead
Timing of KPIs, relative to achievement of corporate goals, is fundamental in choosing good candidate KPIs. Financial results, such
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
s last quarter's revenue, are typically lagged by 2+ months. Annual results, especially fiscal year results, can be much more delayed.
With such lags, the problem arises as to what action might be appropriate to alter the direction of the department's performance, when the
With such lags, the problem arises as to what action might be appropriate to alter the direction of the department's performance, when the
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
PIs are measuring results in the past.
A correction may be inappropriate when the current performance has already significantly altered from that measured some time ago and may result in overcorrection.
Lag indicators should rarely be considered as a KPI as the benefit of
A correction may be inappropriate when the current performance has already significantly altered from that measured some time ago and may result in overcorrection.
Lag indicators should rarely be considered as a KPI as the benefit of
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
KPI is to adjust processes and behaviour to get better performance.
KPIs measuring current performance are more useful. Examples include today's bookings, sales or production level. As always, care must be taken not to allow instant results to result in instant reactions wh
KPIs measuring current performance are more useful. Examples include today's bookings, sales or production level. As always, care must be taken not to allow instant results to result in instant reactions wh
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
ch, in turn, reinforce the original problem.
Other KPIs are of the leading type; their measures are predictive of desired results at the next higher level.
An example of such a leading indicator for market share is customer satisfaction with the organisation's products and
Other KPIs are of the leading type; their measures are predictive of desired results at the next higher level.
An example of such a leading indicator for market share is customer satisfaction with the organisation's products and
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
service. It is important to note though, that customer satisfaction survey output is a lagging indicator of customer service.
The primary difficulty with leading KPIs is to be sure that they are strongly correlated with the required corporate goals; modelling and understand
The primary difficulty with leading KPIs is to be sure that they are strongly correlated with the required corporate goals; modelling and understand
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ng of key business drivers is necessary.
The corollary, of course, is that taking the time and effort to determine the key business drivers will result in a useful KPI rather than a number which is reported on monthly but caused no action to happen even when it strays outsi
The corollary, of course, is that taking the time and effort to determine the key business drivers will result in a useful KPI rather than a number which is reported on monthly but caused no action to happen even when it strays outsi
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
e its range of limits.
More than the nature and the design, a KPI must be understood by all staff. Further, all staff must know the corrective action to be applied. The corrective action must impact the KPI.
For example, completing plant production runs to schedule for a m
More than the nature and the design, a KPI must be understood by all staff. Further, all staff must know the corrective action to be applied. The corrective action must impact the KPI.
For example, completing plant production runs to schedule for a m
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
anufacturing plant impacts lead time which impacts stock levels, purchasing levels, in-full delivery, employee satisfaction and customer satisfaction. The deviation from production schedule of production is a leading indicator of a wide range of performance indicators.
Unde
Unde
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
standing that deviation from production schedule is key enables all people in the plant to apply corrective action to keep to the schedule. The resultant improvement in lead time improves many other dependent indicators including productivity.
Choosing an indicator like pro
Choosing an indicator like pro
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
uctivity as key only has an impact on costs and few people would understand what to do other than work faster or spend capital on automation.
KPIs in most organisations are actually targets, key project dates, key result areas or tasks. As a result, performance is not actua
KPIs in most organisations are actually targets, key project dates, key result areas or tasks. As a result, performance is not actua
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
ly managed.
Having well thought through KPIs and acting on them with the confidence that action will cause a change in performance is well worth the investment in time and corporate brain-power it takes to develop, select and test Key Performance Indicators
Having well thought through KPIs and acting on them with the confidence that action will cause a change in performance is well worth the investment in time and corporate brain-power it takes to develop, select and test Key Performance Indicators
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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