Usage of the Definition Sheet for Key Figures
The LSM tool ‘Key Figure Definition Sheet’ is used to create key figures in a systematic and standardised manner. The aim is to create a catalogue of key figures for a company that prevents misinterpretation of key figures. It also prevents the creation of ‘ad hoc key figures’ that only apply to a very limited area and period of time and whose existence is usually not communicated.
This guide describes the LSM tool in addition to the information contained in the sample document and which can be taken from the OEE template. In addition to standardisation, the key figure definition sheet also serves to systematise the creation of key figures. By filling in the categories – ideally in a workshop – awareness of a key figure is increased, which can have a noticeable impact on its quality.
This key figure definition sheet is divided into six categories:
- Question
This section should explain what the key figure says. What question should the key figure answer, what question does it address? - Definition
The formula is written down here and its terms are defined. The units are also specified. The definition of the key figure should be written down. - Determination or origin
What data and information are required to create the key figure? The data and the sources that generate it are described here. If the key figure is composed of several parts, these parts are described in detail here. Information should also be provided to support error-free calculation. Furthermore, the intervals for data collection and reporting are specified and the form of presentation is defined. - Interpretation
What does the key figure mean? Describe what to look out for when interpreting the key figure. Subsequently, typical ranges for the key figure should be specified, which can serve as a comparison. - Suggested action
In the event of a poor value: How can it be improved? The factors that influence the key figure are described. Furthermore, measures are described on how the factors and thus the key figure can be positively influenced and what needs to be taken into account. This is the place where experts can share their experience with the key figure. - Relationships to other key figures
What relationships exist with other key figures? Key figure definition sheets should also be created for these other key figures. Here, you should indicate which other key figures are influenced by the key figure and which other key figures influence the key figure. The strongest influences should be mentioned. A threshold value can be defined in an asset-liability matrix.
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