K P I & Metrics

A Key Performance Indicator is the name of an aspect of business operation that needs to be monitored because it defines good/poor performance, thus affecting profitability.

Example: Delivery Timeliness (how late/timely our customer deliveries are)

A Metric is a way of defining a KPI so specifically and quantitatively that a single number may represent its current level of performance.

Example for Delivery Timeliness:

% of shipped units delivered past the expected delivery time (= 12)