How to Find Value in KPI Lifecycle

By John Horst, MESA member, National Institute of Standards and Technology (NIST)

and Barry Ezell,Virginia Modeling, Analysis and Simulation Center (VMASC) 

Key Performance Indicators (KPIs) are part of a lifecycle because KPIs are continuously defined, redefined, and are even sometimes abandoned. Explicitly defining a KPI Lifecycle provides an impetus for the development of methods and tools that enhance performance.  

NIST and VMASC have designed two methods to define KPI Lifecylce: one for performing KPI Set Composition, and the other for KPI Assessment.  

Both methods need to produce accurate results. But how can we know that the methods are producing accurate results --thereby providing real value to the manufacturer?