KPIs are a critical tool used in measuring and monitoring operational performance. KPIs are both used to inform those with oversight as well as to help run day-to-day operations of the utility. They allow a utility to track progress of improvement programs and also serve as a flag for areas where service might be deteriorating and is in need of extra attention. They also allow the utility to set targets for improvement within a given year or over the course of an improvement program. In many jurisdictions, utility performance against KPIs is a key evaluation criteria used by regulators in setting tariffs.
KPIs can be defined per an internal operating standard, by international standards or a mix, as is appropriate and realistic for the utility. While there is an endless array of potential KPIs that can be established, it is best to focus at first on a small, high level, high impact set of measures. This philosophy matches the approach we take with operational reforms: focus on those areas
that have the highest potential for improvement, generating the highest value over the shortest period of time.
In general, there are three main categories of KPIs against which performance is measured: kilowatt-hours, people, and time.Examples of KPIs that are useful in initiating and sustaining operational improvements are shown in Figure 8.1. While this is not an exhaustive list, it does provide an indication of the type of measures that can be used to keep track of performance improvement progress.
KPIs can be defined per an internal operating standard, by international standards or a mix, as is appropriate and realistic for the utility. While there is an endless array of potential KPIs that can be established, it is best to focus at first on a small, high level, high impact set of measures. This philosophy matches the approach we take with operational reforms: focus on those areas
that have the highest potential for improvement, generating the highest value over the shortest period of time.
In general, there are three main categories of KPIs against which performance is measured: kilowatt-hours, people, and time.Examples of KPIs that are useful in initiating and sustaining operational improvements are shown in Figure 8.1. While this is not an exhaustive list, it does provide an indication of the type of measures that can be used to keep track of performance improvement progress.
Sample Key Performance Indicators |
It is up to the utility to select the appropriate KPIs and add further KPIs as it gains experience and progress. There are certain basic KPIs and other advanced KPIs. Accordingly it is proposed to select and implement the KPIs in two stages.
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