TECHNICAL REPORT

KEY PERFORMANCE INDICATORS

ENHANCING PRODUCTIVITY
IN THE I NDIAN C EMENT S ECTOR
 TECHNICAL REPORT
– KEY PERFORMANCE INDICATORS
Enhancing Productivity
in the Indian Cement Sector

Copyright © United Nations Industrial Development Organization, 2017

This document has been produced without formal United Nations editing. The designations employed and
the presentation of the material in this document do not imply the expression of any opinion whatsoever on
the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning
the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its
frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”,
“industrialised” and “developing” are intended for statistical convenience and do not necessarily express a
judgment about the stage reached by a particular country or area in the development process. Mention of firm
names or commercial products does not constitute an endorsement by UNIDO.

The opinions, statistical data and estimates contained in signed articles are the responsibility of the author(s)
and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO.
Although great care has been taken to maintain the accuracy of information herein, neither UNIDO nor its
Member States assume any responsibility for consequences which may arise from the use of the material.

Designed by Athenea International/Omnilang (Mauricio Mondragon & Maria Grineva). 2017

 Table of contents

Acknowledgements 6
Executive Summary 7
1 Introduction 9
1.1. Objectives of the workshop 10
2 KPI Workshop 13
2.1. General information about KPI design and KPQ 13
2.2. General chart types 15
2.3. KPIs in the cement industry 16
2.4. Presentation of industry KPIs 19
2.5. Work groups 22
3 Feedback 25
4 Conclusions 27
 Acknowledgements Executive Summary

The Technical Report – Key Performance Indicators was drafted in the context of project UNIDO has implemented a project titled ‘Development and adoption of appropriate technolo-
- Development and adoption of appropriate technologies for enhancing productivity in gies for enhancing productivity in the cement sector’, in collaboration with the Department of
the cement sector - funded by the Government of India, Department of Industrial Policy Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India.
& Promotion (DIPP).
Under the aegis of the UNIDO International Centre for Inclusive and Sustainable Industrial Devel-
The report was produced by UNIDO’s department of Trade, Investment and Innovation (TII), opment (IC-ISID), New Delhi, the cement project aimed to support the Indian cement sector by
under the directorship of Dr. Bernardo Calzadilla-Sarmiento, the project being managed by strengthening the capacity and capability of the nodal technical institution for the sector – the
Dr. Anders Isaksson. National Council for Cement and Building Materials (NCCBM) - to provide management and tech-
nical support to the cement industry. The project looked to facilitate structured expert dialogue,
The technical content is the work of the following UNIDO technical experts: Dr. Daniel Lemarchand, transfer state-of-the-art technologies, and action a wide range of technical capacity building
Dr. Pieter Du Toit, Ms. Layse Harada, Ms. Cornelia Bauer and Dr. Harald Schöffmann. and knowledge sharing activities, and ultimately strengthen the global competitiveness of the
Indian cement sector.
The results presented in this report, have been reviewed and edited by Dr. Ritin Koria,
Mr. Vikas Kumar, and Ms. Shraddha Srikant. In this direction, a series of technical workshops were conducted to enhance and develop the
capacity of NCCBM. This technical report highlights the training provided with respect to the
Proof reading was undertaken by Ms. Lauren Cooke, and final layout and Design was effective use of key performance indicators in the Indian cement sector.
undertaken by Mr. Mauricio Mondragon and Ms. Maria Grineva.
The workshop covered topics such as KPI design, Key Performance Questions, types of charts,
Furthermore, we would like to extend thanks to the staff of the National Council for Cement KPIs for the cement industry, and industry-specific analyses of KPIs. The report also makes rec-
and Building Materials (NCCBM) and the Cement Manufacturers’ Association (CMA), in par- ommendations for the successful implementation of a KPI tool box, that involve accuracy and
ticular Mr. Sanjeev Kumar Chaturvedi and Mr. Shailendra Chouksey, respectively, for availing appropriate interpretation of data, as well as on-site experience for the staff of NCCBM in order
the necessary logistical support for the hosting of technical workshops and seminars, for to better equip them to conduct audits and provide recommendations, vis-à-vis important KPIs.
support in data collection and active participation in the project.

6 | Key Performance Indicators Key Performance Indicators | 7

 Introduction 1

UNIDO has implemented a project titled derived fuels, CO2 emissions and green
‘Development and adoption of appropri- technologies, patents and intellectual
ate technologies for enhancing productivity property rights (IPRs), global best practices
in the cement sector’ in collaboration with and up-to-date technologies.
the Department of Industrial Policy and Pro-
motion (DIPP), Ministry of Commerce and One of the six workshops organised in this
Industry, Government of India. direction was on “Key Performance Indica-
tors” (KPIs) on 28-29 July 2016. The pur-
Under the aegis of the UNIDO International pose of the KPI workshop was to broaden
Centre for Inclusive and Sustainable Indus- the existing knowledge base and enhance
trial Development (IC-ISID), New Delhi, the the competencies of the junior NCCBM
cement project aimed to support the Indian staff to monitor and assess the perfor-
cement sector by strengthening the capacity mance of Small and Medium Enterprises
and capability of the nodal technical institu- (SMEs) in the Indian cement sector. As a
tion for the sector – the National Council for reference point, KPIs used internationally
Cement and Building Materials (NCCBM) - to in the cement industry were presented and
provide management and technical support explained as part of the knowledge transfer
to the cement industry. during the workshop.

The project aimed to facilitate structured KPIs must be managed centrally by an

expert dialogue, transfer of state-of-the- organization, such as NCCBM, to be repre-
art technologies to the Indian cement sentative of the industry. From a technical
sector, and a wide range of technical point of view, SMEs require support to iden-
capacity-building and knowledge sharing tify the gaps, create action plans and exe-
activities to boost the technical and mana- cute them efficiently.
gerial capabilities of NCCBM and ultimately
strengthen the global competitiveness of One of the outcomes of the workshop was to
the Indian cement sector. equip NCCBM to be able to develop a quan-
titative KPI toolbox to achieve performance
To fulfil this objective, one of the activi- improvement in plants, and facilitate the
ties of the project was to conduct techni- provision of support to small and medium
cal workshops for the scientists and engi- sized cement plants. The toolbox will ena-
neers of NCCBM in areas such as energy ble NCCBM to monitor, evaluate and identify
usage and energy efficient solutions, waste possible risks and to offer support to SMEs.

Key Performance Indicators | 9

Introduction

1.1. Objectives of the workshop »» The next steps, such as training and sup-
port needs, are identified and proposed
The objectives of the workshop are to: under conclusions.

»» Provide general information about the This report is structured as follows:

way to design KPIs properly - This work-
shop gives global knowledge as to how »» Chapter 1 covers a general introduction
KPIs should be created, which steps and objectives of the workshop.
need to be taken into consideration and
how to visualize them in the most effi- »» Chapter 2 details the various topics cov-
cient way. ered during the KPI workshop - designing
KPIs and KPQs, types of charts, KPIs for
»» Explain relevant KPIs which are used inter- the cement industry, industry-specific KPIs

“
nationally to follow the performance of the and a summary of the working groups.
cement industry- This will help the NCCBM
to select a set of KPIs to monitor the Indian
cement industry and to set appropriate
»» Chapter 3 summarises the participants’
feedback of the workshop.
The project aimed to facilitate
actions for further steps. structured expert dialogue,
»» Chapter 4 lists the conclusions drawn
»» Transfer the skills necessary for NCCBM to regarding the adoption of a KPI toolbox for transfer of state-of-the-art
develop a KPI toolbox the cement industry. technologies to the Indian
cement sector, and a wide
range of technical capacity-
building and knowledge
sharing activities to boost
the technical and managerial

„
capabilities of NCCBM and
ultimately strengthen the global
competitiveness of the Indian
“
cement sector.

10 | Key Performance Indicators Key Performance Indicators | 11

 KPI Workshop 2

2.1. General information about »» Are not necessarily quantitative; can be a

quantified representation
KPI design and KPQ
»» Facilitate the setting of performance tar-
The design of KPIs was explained against a gets and monitoring of trends
global background. This first session dealt
with the generic principles of formulating Key »» Should not lead to adverse behaviour
Performance Questions (KPQs) and design-
ing Key Performance Indicators (KPIs). »» Most importantly: They are used to track
and report on performance
Fundamental to the understanding of KPIs is
that monitoring performance does not equal »» KPIs should trigger reflection and deci-
using any ‘measurable’ data from a facility sion making and lead to performance
or operational area. KPIs must be linked improvements
to the company strategy and must lead to
an improvement over both the short and The presentation discussed a 20-point tem-
medium term. The way to link the strategy plate, which facilitates the development of
and the KPI is to first formulate a Key Perfor- the appropriate KPIs. The template gives
mance Question (KPQ). The KPQ enables the guidance on how to link the company strat-
design of good and relevant KPIs. egy to the performance question and then
how to formulate a suitable indicator to
Good KPIs (individually and collectively): answer the question.

»» Highlight important aspects of perfor- 1. Strategic Objective

mance in a balanced manner • Which strategic objective is this indica-
tor relating to?
»» Focus on outcomes and outputs, not 2. Key Performance Question (KPQ)
activities
• Identify the question which the KPI
should answer and why the indicator is
»» Must, as far as possible, be within the con-
being introduced.
trol of the entity being assessed
3. Who is asking?
»» Are clearly defined and are based on a • Identify the person(s) or function(s) so that
credible data source KPIs can be designed at the right level.

Key Performance Indicators | 13

KPI Workshop

4. What will they do with the information? 12. Who collects the data? 16. What dysfunctional behaviour could 20. Reporting formats - Identify how the
• Identify how the information will be used • Identify the person, function or external the indicator trigger? data is best presented
or which decision(s) it could improve. agency responsible for the data collec- • Could the indicator encourage wrong/ • Different formats could be: numbers,
5. KPI Identification tion and data updates. adverse behaviour or cheating? tables, graphs, and charts.
• The person measuring could be an • Raises awareness of possible cheating • The best results are usually achieved if
• Each KPI should have a unique identifi-
internal person or function within the behaviour and enables closer monitoring performance is reported in a mix of numer-
cation number which keeps track of the
company. of the situation. ical, graphical and narrative formats.
indicator, as well as the person respon-
• It could be external agencies e.g. for • Consider also presenting past perfor-
sible for the improvement performance. 17. Audience and Access
indicators such a customer satisfaction mance or a series of data, which is use-
6. KPI Name (where it is difficult to collect data). • Consider access restrictions for confi- ful to analyse trends over time.
• Data collection should be cross-checked dential information e.g. production data.
7. KPI Owner and signed off before release. • Primary audiences are the people
• Identify the person responsible for the directly involved in the management and
improvement performance. 13. Targets and Performance Thresholds decision-making related to the objective
• Identify the person who is responsible and - Guidelines for setting good targets that is being assessed.
• Secondary audiences could be other
accountable for the performance against • Use existing information and review
parts of the organization, which would
this indicator (not just to collect the data). trends and history.
benefit from seeing the data. 2.2. General chart types
8. Data collection method • Consider variation in performance, e.g.
• Tertiary audiences could be stakeholders.
• Identify and describes the method by peaks, troughs and seasonal factors. The most effective way to convey a particu-
• Different audiences deal with the data
which the data is being collected, e.g. • Take account of national targets, best lar point is to derive a simple graphic rep-
differently. Data analysts use the data
surveys, questionnaires, interviews, practice benchmarks, etc. resentation of the data that needs to be
to make improvements while manage-
focus groups, data measurements. • Take into account time lags. communicated.
ment needs the data to support their
9. What is the source of the data? 14. How well is the indicator measuring decision-making.
Displaying KPIs should be done in an easy
• Identify the source of the data. performance? 18. Reporting frequency - Identify how way in order to be understood at a first glance.
• Is the data freely available and feasible often the indicator is reported
• Consider the validity of the indicator is
to collect? • The indicator needs to provide timely Various types of charts for data analysis
measuring the performance.
• Will the data collection method (e.g. information. were presented, such as: histograms; pie
∙∙ E.g. Financial indicators are well
interviews with senior managers) pro- • The reporting frequency can be different and line charts; tabular data; tiled matrix;
established (real numbers), therefore
vide accurate information? to the measurement frequency. speedometers, radar plot/ spider graphs
confidence in the result is high vs.
10. What is the Formula/Scale/Assess- organizational culture (intangible) • An indicator may be collected hourly, but and area graphs were explained. Some
ment Method? is something much more difficult to reported at a weekly or monthly meeting. good usage examples and tips on how to
• How will the data be captured? measure and so the confidence in the • Important –the improvement, change display each single chart type in the best
• Is it possible to create a formula? result could be much lower. in process, etc. is not done according to format were given.
• Is it an ‘aggregated’ indicator or index the reporting frequency but the meas-
that is composed of other indicators? 15. How much will it cost to collect the urement frequency. After discussing multiple data display meth-
data; are the costs justified? ods, the concept of a dashboard was shared,
11. How often, when and for how long do 19. Reporting Channels
for the effective presentation of KPIs. A dash-
we collect the data? • Perception that creating and maintain-
• The indicator needs to provide timely board is the most efficient way of displaying
ing a measurement system does not
• Designer thinks about when and how information. multiple KPIs in a singular view.
incur costs.
often the data for that indicator should • An indicator can be reported at the
be collected. • Costs can be: decision making and daily/weekly meeting for action to be It can be shared simply via email, presenta-
• Some indicators are collected continu- learning costs. taken, but also only reported monthly tion, homepages, etc.
ously, others hourly, daily, monthly or • Administrative or outsourcing costs. to senior management.
even annually. E.g. Website usage may • Analysing and reporting costs. • Align the identified reporting channels with Similar KPIs should be grouped into func-
be tracked continuously, kiln outputs • Important to ensure that the costs and the reporting and measurement frequency tional areas; you can separate them in
daily, or quarry reserves annually. efforts are justified. to ensure the data is available in time. different dashboards. (See figure 1 below.)

14 | Key Performance Indicators Key Performance Indicators | 15

KPI Workshop

Figure 1:  Example of KPI dashboards »» Fatalities - Number of fatalities of com- »» Fuel expenses (Monetary unit/GJ) - fuel
pany employees. Contractors are usually oils, coal, natural gas, petcoke, alternate
shown separately fuels, animal meal, sewage sludge, bio-
Safety Incident Dashboard Consulting Inquiries Practical Computer Applications
Info@pcapps.com, (617) 527-4722, www.pcapps.com
mass, solvents, tires etc.
»» Lost time accidents - Where the employee
Severity Cause
is unable to resume his/her job in the next »» Labour expenses (Monetary unit/h)
Material
** Hint: Drag normal working period
Near Miss Procedure mouse on Bars People
or Captions to
Design
drill down »» Severity rate and Frequency rate - Ratios KPIs in this field cover the population at the
Training
are usually calculated for lost days per sites, hours worked and productivity.
Management
Medium Critical
External
1000 hours worked and Lost time acci-
Equipment dents per million hours worked »» Site Headcount- Number of site people for
Major Personnel all categories of personnel can be split into
»» Safety Practice Status - Level of excellence operational areas in the plant; process,
0 50 100
** Hint: Drag mouse on pie to drill down # Incidents achieved in safety practices; measured by quarry, shipping etc
Category Site
leadership and involvement, prevention
Weston and control, training and communication »» Manufacturing population - Total number
80
Bolton of people on site contributing to cement in
60 Shirley Finance bin manufacture
# Incidents

Lincoln KPIs in this field are focussed on sustaining

40
Maynard »» Hours worked - Total hours worked on com-
Median investments needed to keep the company
20 Acton pany-authorized activities. These can be
competitive while maintaining the same
Concord apportioned according to areas – cement,
0
Hudson level of production and sales.
Median
clinker, general services, maintenance
Equipment

Divergence

Complaint
Transport

Security
Customer

Injury
Spill

0 20 40 60
»» Sustaining Investment - Replacement of »» Productivity - Total hours worked per quan-
# Incidents
existing equipment to keep the site oper- tity cement produced
ating normally
»» Staff headcount and turnover are important
2.3. KPIs in the cement industry »» People »» Productivity and Quality improvement sus- for retaining expertise within the company
taining investment - Investments aimed at
»» Performance
In this session, actual KPIs used in the cement sustaining competitiveness in the market Maintenance
industry were discussed. Examples were pro- »» Production activity »» Equipment failure rate - For a given piece
»» Information systems - Investment in IT to
vided from the European cement industry to »» Production cost of equipment, the number of stoppage
maintain a competitive edge
demonstrate how powerful correctly selected, hours caused by equipment failure
processed and displayed KPIs can be. »» Project Management »» Land for Sustaining Investment - Secure
land and deposits for the continuing oper- »» There are 4 main impacts of equipment failure
»» Quality
KPIs relevant to the following fields of opera- ation of the site • Loss of clinker production (especially in
tion were discussed: »» Reserves sold out markets)
»» Stakeholder relationships
»» Safety • Quality fluctuations due to stoppage
»» Accounting Accounting • Start-up has significant costs
A few KPIs selected from the above fields The following KPIs are focussed on general • Equipment undergoes stress during
»» Commercial
of operation that may be relevant to the KPI costs and expenditures. cooling and heating
»» Consumption ratio toolbox are described below:
»» Labour expenses - Cost of one hour worked Equipment
»» Environment to produce cement in bin
Health and safety »» Clinker and cement storage capacity are
»» Equipment Companies are very focused on health and »» Average Specific Power cost (as Monetary important particularly in sold out markets
safety information and reporting is usually unit/Mwh)
»» Financial »» Description of each piece of equipment is
in the public domain and easily accessible
»» Maintenance on websites. »» Average Specific Heat cost (Monetary unit/GJ) important for replacement and maintenance

16 | Key Performance Indicators Key Performance Indicators | 17

KPI Workshop

»» Main equipment by supplier »» Percentage of each type Quality KPIs Topic “Product Quality Mastery”
• Date of equipment start-up »» Quantity of clinker and cement produced These KPIs are the most important for meas-
Example – Product Mastery:
• Type of process for each piece of equipment uring the quality of the products
»» Quantity of raw mix produced
»» 2d strength [St dev MPa]
Environment »» Mean Time Between Failure - Effective »» Kiln Feed Uniformity Index - C3S or LSF Var-
operating time/total number of shutdowns iance, or as C3S or LSF Standard Deviation »» 28d strength [St dev MPa]
Governments and regulatory bodies usually
impose environmental issues and limits. »» Seasonality Coefficient »» Raw Meal Uniformity Index - C3S or LSF Var- »» Initial Setting Time [St dev min]
Companies have these topics as commit- iance, or as C3S or LSF Standard Deviation »» Water Demand [St dev %]
ments/goals which need to be improved Production cost
»» Clinker uniformity Index - C3S Variance
over the medium to long term. These Indicators are focussed on all the Display – possibilities:
costs for each operational area in the »» Strength uniformity - 3, 7 and 28 day
»» CO2 emissions - Direct emission due to cement plant. strength Standard Deviation »» Different years
Clinker production
»» Laboratory accuracy - Reliability and accu- »» Average
»» Combustibles expenses
»» Stack gasses NOx and SO2 - Usually meas- racy of results »» Target
ured continuously expressed in mg/m3 dry »» Power expenses
gasses at 0°C, 101,3 kPa and 11% O2 »» Laboratory equipment - Calibration status »» Company results
»» Purchased materials
»» Kiln and Cooler stack dust (mg/m3) »» ISO 9000 Certification – Year of current »» Other plants, etc.
»» Additives to raw mix and cement certification
»» Gas flows at main stack and cooler stack Figure 2: Example of displaying grouped KPIs
»» Labour expenses »» Product Quality indicator – Percentage of
»» Environmental audit – when last carried out time results are within upper/lower lim-
»» Energy cost Product
»» Quarry rehabilitation plan its set by Marketing and Manufacturing mastery
»» Production supplies
(resulting in zero customer complaints) Ce
»» Maintenance labour d gri men
Consumption ratios ee ma ndin
t
nf y
Kil ster ste g
A Company needs to know the consumption »» General services Quarry and Reserves ma
ry
ratio and percentage of all materials used in Limestone and other raw materials are
order to optimize the manufacturing process Performance KPIs critical components for the cement indus-
with minimum wastage. These KPIs are the most important for meas- try and need to be very well controlled.
uring the performance in the cement plant Without reserves it is not possible to
»»Specific heat consumption at each stage of the establish a plant
process – including drying of materials, fuels »» Performance Factor - Output of clinker/
rated capacity (suppliers guarantee or »» Lifetime of quarry - Proven, probable and
»» Percentage of each fuel by type – including
best 7 days’ continuous production) potential reserves
alternative fuels bu ds
»» Reliability factor - Effective operating time/ »» Limestone consumption factor ma rning tho acy
»» Power consumption/tonnage for each ste e
M cur
(effective operating time + production ry
ac
equipment type »» Percentage of quarry materials in raw mix
stoppages)
»» Cement/clinker additive coefficient - addi- »» Percent additives in raw mix Methods
»» Utilization Factor - Effective operating precision
tive percentage in cement
time/available operating hours
»» Raw mix/clinker ratio
»» Rated capacity - Best production averaged 2.4. Presentation of industry KPIs The targets and limits need to be defined per
»» Raw materials purchased percentage for 7 consecutive days KPI which depend on (amongst others):
»» Limestone consumption factor »» Output average per equipment The experts went on to present different
measures/ topics where KPIs are grouped in »» Existing standards/ regulations
»» Quantity of consumed water »» Process Failure rate the background. Some examples of different »» Historical data evaluations
»» Number of consecutive operating days dashboards are given below: »» Customer needs
Production activity
»» Clinker output versus budget »» Method capabilities
»» Main clinker and cement type - Number of It is possible to cover different measures/top-
clinker and cement types »» Cement output versus budget ics where KPIs are grouped in the background. »» Strategic targets

18 | Key Performance Indicators Key Performance Indicators | 19

KPI Workshop

A frequently used method is the usage of categories A to E with a clear colour code (A is the Figure 5:  Example of displaying product The result for 65% can be entered in the
best). The scoring class is necessary to express the % achievement later. mastery spider graph under the “Product Mastery”.

Figure 3: Example of scoring classes for KPI targets and limits Product This way of data evaluation was done in
mastery
Ce Excel and can be updated year by year when
d gri men
A B C D E ee
nf y ma ndin
t the data source remains the same.
Kil ster ste g

Product Mastery for Plant X

x

Gives a total of 13 from a

ma ry

maximum of 20 = 65%
AXIS Parameters StDev ≤X <X≤ <X≤ <X≤ X> The most difficult but important action is to
collect the data, select those that are most
Products Mastery Compressive strength 1 d MP a 1.0 1.0 1.4 1.4 1.8 1.8 2.2 2.2 useful and proper, validate them and carry
Products Mastery Compressive strength 2 d MP a 1.0 1.0 1.4 1.4 1.8 1.8 2.2 2.2 out the evaluation.

Products Mastery Compressive strength 3 d MP a 1.0 1.0 1.4 1.4 1.8 1.8 2.2 2.2 bu Tabular list with colour codes
ds
ma rning e tho cy
Products Mastery Compressive strength 7 d MP a 1.6 1.6 2.0 2.0 2.5 2.5 3.0 3.0 ste M ura
ry c
ac For the display of less complex data/ KPIs, a
Products Mastery Compressive strength 28 d MP a 1.6 1.6 2.0 2.0 2.5 2.5 3.0 3.0 Methods simple tabular list with a colour codification
precision
Products Mastery Water demand % 0.5 0.5 1.0 1.0 1.5 1.5 2.0 2.0 can be used.

Products Mastery Initial setting time minutes 10 10 15 15 20 20 25 25 Figure 6:  Example of a simple tabular, colour coded list to display less complex data/ KPIs.

A B C D E BU Plant Uniformity Period: June Legend

Quality
≤X <X≤ <X≤ <X≤ X> Plant A Plant B Plant C E D C B A
parameter
5 4 3 2 1 Month 11.0 9.0 5.0
Raw mix UI CaO
YTD 10.0 11.0 6.0 > 10.0 10-8 8-6 8-4 < 4.0
SD
Figure 4: Example where plant X has 4 values, which are categorized in the A to E classes, 12 month 8.0 7.0 3.0
coloured accordingly and the score added properly. Month 54 45 25
Raw meal UI YTD 45 30 21 > 50 40-50 30-40 20-30 < 20
A B C D E Plant X 12 month 35 19 15
Month 31 25 15
AXIS Parameters StDev ≤ X <X≤ <X≤ <X≤ X > Value Classes Scoring KFUI YTD 25 19 12 > 30 20-30 14-20 10-14 < 10

Quality Index
Products Compressive 12 month 19 30.0 9
MP a 1.0 1.0 1.4 1.4 1.8 1.8 2.2 2.2
Mastery strength 1 d Month 37 29 16
Products Compressive C3S Clinker (CUI) YTD 35 25 14 > 36 25-36 16-25 12-16 < 12
MP a 1.0 1.0 1.4 1.4 1.8 1.8 2.2 2.2 1.22 B 4
Mastery strength 2 d 12 month 25 16 11
Products Compressive Month 0.35 0.31 0.25
MP a 1.0 1.0 1.4 1.4 1.8 1.8 2.2 2.2 0.3- 0.25- 0.20-
Mastery strength 3 d ASG YTD 0.30 0.25 0.21 > 0.35 < 0.2
0.35 0.30 0.25
Products Compressive 12 month 0.32 0.20 0.19
MP a 1.6 1.6 2.0 2.0 2.5 2.5 3.0 3.0
Mastery strength 7 d Month 3.1 2.5 2.0
2.5- 2.0- 1.6-
Products Compressive 2(3) Day STRui YTD 2.8 2.0 1.6 > 3.0 < 1.6
MP a 1.6 1.6 2.0 2.0 2.5 2.5 3.0 3.0 1.50 A 5 3.0 2.5 2.0
Mastery strength 28 d 12 month 2.8 1.5 1.5
Products Water Previous
% 0.5 0.5 1.0 1.0 1.5 1.5 2.0 2.0 1.10 C 3 3.0 2.5 3.1
Mastery demand Month 2.5- 2.0- 1.6-
28-Day Std Dev > 3.0 < 1.6
Products Initial setting YTD 1.8 2.0 1.6 3.0 2.5 2.0
min. 10 10 15 15 20 20 25 25 30 E 1
Mastery time 12 month 1.6 2.0 1.5

20 | Key Performance Indicators Key Performance Indicators | 21

KPI Workshop

Bar charts with previous and current data 2.5. Work groups Results: 2.5.3. Comparison KPIs of 3
different plants
It is possible to introduce previous years’ 2.5.1. Create/design own KPI 80% of the participants are not in the
data together with current data to see the plant regularly and are not responsible for Examples of production and process KPIs
improvement year to year. This is important The experts conducted a practical exercise follow up of KPIs. from three different plants were given to
for benchmarking and identifying areas for during the workshop for a better under- the participants. The KPIs were specifi-
improvement and building action plans. standing of KPIs. The group work started The KPIs used in the NCCBM are mainly for cally designed to show a poorly performing
with a common exercise to create a KPI for internal evaluations (good example CQC), plant, a moderate-performing plant and a
Figure 7: Examples of displaying previous beer production in India. The purpose was to but not for global benchmark or plant sup- well-performing plant.
and current data demonstrate how to design a KPI from every- port follow up.
day experience by applying the principles Given the values for the KPIs and the measure-
Minimum Maximum taught in earlier presentations. Most of the listed KPIs are not measurable ment criteria, participants were asked to evalu-
of the population of the population and 95% of the KPIs don´t have limits - no ate the data with a view to deciding which KPIs
The participants were divided into groups of follow up is possible this way. In some cases, were relevant and which not. The main focus
Indifferent Optimum Disadvantage 4 and used the same process for a topic out- the participants refer to the “NCB guide was always to decide how to ensure improve-
side the cement sector. norms for the cement plant operations” ment using the relevant KPIs. In addition, KPIs
Low Median Upper Value 2013 which gives very good global input (year can be different when evaluating data between
Quartile Quartile Participants had to follow the 20-point 2005), but can´t be used for the detailed ‘sold-out’ and not ‘sold-out’ cement plants.
guidance template, which was explained in diagnostics of a single cement plant (e.g.
Clinker - 2 plants in comparison
detail in the general explanation on day one. alternative raw materials and fuels, new An example of some values for certain KPIs
C3S Clinker technologies, etc.). for a cement plant are given below:
61.7 65.8 The groups came up with different solutions
74.9
51.9 55 60 which were challenged by the other groups
±3
64.2
57.7 59.6
and discussed intensively. Table 1: Evaluation of relevant KPIs to ensure improvement
74.9
51.9 55 60
±3
58 After this session, the participants had a Indicator Plant A Rating Plant B Rating Plant C Rating
much better understanding of how to cre-
SR Clinker
2.5
ate a KPI. Heat Consuption MJ/t 3,493.3 3,537.6 3,827.6
2.3 3.1
2.1
±0.1
2.4 2.5.2. Individual work Clinker Output [tpd] 2,713 4,692 943
2.8 3
2.3 3.1 Rated capacity (tpd) 3,143 4,598 1,200
2.1
±0.1 Each participant was asked to fill in a docu-
2.9
ment answering the following questions:
SO3 /alkalis
Clinker produced (tpa) 649,398 1,243,286 313,528
0.98 1 »» Which KPIs do you know and use for plant
0.20 8.2
9.9 projects and/ or support regularly? Clinker budgeted 653,090 1,285,344 295,954
±0.15
1.06
0.8 0.85
»» In which way is this KPI used (for bench- Operating hours 5,665 6,359 7,979
0.20 8.2
9.9 marking, comparison, follow up, etc.)?
±0.15
0.8 Clinker capacity per annum 985,953 1,442,383 376,438
»» Is there a target/ limit set on the KPI (yes/ no)?

22 | Key Performance Indicators Key Performance Indicators | 23

 Feedback 3

The following bar chart reflects the feedback of the participants to the KPI workshop. The
workshop received positive feedback vis-a-vis the content and its relevance for the partic-
ipants, subject knowledge of the experts, group activities conducted as well as the overall
utility derived out of the training.

Figure 8: A bar chart highlighting feedback for the KPI workshop

Participants feedback

Overall Satisfaction Presenters - Subject knowledge of presenters

Workshop content - Covered useful material Presenters - Presentation style
Workshop content - Relevant to my needs Presenters - Clarity of talk
Workshop content - well organized sessions Presenters - Responses to questions
Workshop content - effective group activities Workshop outcome - workshop objectvies were met
Workshop content - useful visual aids Workshop outcome - Results are useful for my activity

Key Performance Indicators | 25

 Conclusions 4

There are several aspects regarding data data i.e. interpretation of the data. At this
that would affect the successful implemen- stage, it seems as if staff at the NCCBM do
tation of the KPI toolbox: not have the adequate experience or skills
to meet this requirement.
»» The availability and access to data from
the small and medium enterprises (SMEs) »» For example, the data could point to a
must be ensured. This requires investiga- problem with uniformity of materials used
tion and setting of requirements by DIPP/ in the manufacturing process. The problem
CMA or the appropriate authorities. needs to be identified and then a series of
appropriate actions taken to determine
»» The data must also be accurate and reli- cause, remedial actions and follow-up.
able. This will require validation of the
data by the NCCBM. This function is not Staff at the NCCBM would have to visit plants
currently performed by the NCCBM. Rel- experiencing problems, performing types of
evant centres at the NCCBM (e.g. CRT audits/investigations and make recommen-
and/ or CME) need to develop KPIs for dations. This is not currently the approach
the plant lab accuracy. followed by the NCCBM. In order to achieve
this, the staff members require training on
»» A further requirement for successful imple- how to perform this function as well as the
mentation is a proper understanding of the required resources.

Key Performance Indicators | 27

Notes

Images and illustration copytights ©

iSTOCK: Shuoshu.
AETHEREAL SOLUTIONS: otherwise.
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