Key performance indicators are the most assorted variables that organizations used for the purpose of assessing, analyzing and tracking the manufacturing processes. These performance measurements are commonly used to evaluate the desired success in the form of correlation between the goals and objectives.

With the help of key performance indicators, organizations can judge lots of measures and can take help for the betterment of their businesses.

To measure these types of challenges like improvement of customer’s experiences and responsiveness, improve quality, improve efficiency, to reduce inventory, increase flexibility and increasing profitability can be easily measured by the organizations.

This can be held through the various types of indicators and these indicators can be summarized into following sub-categories:

• Quantitative Indicator:

A measurable characteristic, resulted by counting, adding or averaging the numbers. Quantitative data is common in measurement and it forms the backbone of the most key performance indicators.

• Qualitative Indicator:

It is a descriptive characteristic, an opinion, a property or a trait. For example, are the employees satisfied through survey which gives a qualitative report.

• Outcome Indicator:

It reflects overall results or impact of the business activity in terms of generated benefits, as a qualification of performance. For example, customer’s retention.

• Lagging Indicator:

It is the type of indicator that presents the success or failure after an event has been consumed. Such as most financial key performance indicators measure the output of past activity.

• Leading Indicator:

It measures those activities that have a significant effect on the future performance. Drive the performance of the outcome measure, being predictor of success or failure.

• Output Indicator:

It measures the financial and non-financial results of the business activities. Such as revenue or number of new customers acquired.

• Input Indicator:

It measures the assets and resources are invested in or used to generate the business results. Such as Dollar spent on research and development, funding for employee’s training and quality of raw materials etc.

• Process Indicator:

It measures the efficiency or productivity of a business process. It also used in the field of medical. For example, it is used to measure percentage of humidity and temperature in centigrade.