Medium Company (MedCo) is a regional distributor of cleaning products for manufacturers, mostly in states near Minnesota. MedCo is not a manufacturer itself, it purchases products and resells them to its business customers.

Required:

• Select 5 or 6 KPIs from the list of 75 provided in the textbook. Choose KPIs that you consider to be particularly useful for MedCos management to use in evaluating their operations. Explain the reasons for your choices.
• For each KPI you selected, describe the data management will need for the calculation. Also describe a useful visual image that will tell management at a glance whether each KPI in the dashboard is on target. This might be a stoplight, a speedometer, a thermometer, or some other visual representation that will be helpful.
• Speculate on a reasonable target level for each KPI in your dashboard. Explain your reasoning for each.

Operational KPIs Financial Performance KPIs 38. Six Sigma Level 1. Net Profit 39. Capacity Utilization Rate (CUR) 2. Net Profit Margin 40. Process Waste Level 3. Gross Profit Margin 41. Order Fulfillment Cycle Time 4. Operating Profit Margin 42. Delivery in Full, on Time (DIFOT) Rate 5. EBITDA 6. Revenue Growth Rate 43. Inventory Shrinkage Rate (ISR) 7. Total Shareholder Return (TSR) 44. Project Schedule Variance (PSV) 8. Economic Value Added (EVA) 45. Project Cost Variance (PCV) 9. Return on Investment (ROI) 46. Earned Value (EV) Metric 10. Return on Capital Employed (ROCE) 47. Innovation Pipeline Strength (IPS) 11. Return on Assets (ROA) 48. Return on Innovation Investment (ROI2) 12. Return on Equity (ROE) 49. Time to Market 13. Debt-to-Equity (D/E) Ratio 50. First-Pass Yield (FPY) 14. Cash Conversion Cycle (CCC) 51. Rework Level 15. Working Capital Ratio 52. Quality Index 16. Operating Expense Ratio (OER) 53. Overall Equipment Effectiveness (OEE) 17. CAPEX to Sales Ratio 54. Process or Machine Downtime Level 18. Price-to-Earnings Ratio (P/E Ratio) 55. First Contact Resolution (FCR) Customer KPIs Employee Performance KPIs 19. Net Promoter Score (NPS) 56. Human Capital Value Added (HCVA) 20. Customer Retention Rate 57. Revenue per Employee 21. Customer Satisfaction Index 22. Customer Profitability Score 58. Employee Satisfaction Index 23. Customer Lifetime Value 59. Employee Engagement Level 24. Customer Turnover Rate 60. Staff Advocacy Score 25. Customer Engagement 61. Employee Churn Rate 26. Customer Complaints 62. Average Employee Tenure 63. Absenteeism Bradford Factor 64. 360-Degree Feedback Score 65. Salary Competitiveness Ratio (SCR) 66. Time to Hire 67. Training Return on Investment Chapter 7