KPIs

Question 1

KPIs to measure sustainability performance

Answer 1

• Percentage of recyclable or compostable packaging used in a month (dividing the volume of recyclable or compostable packaging in the month by the total volume of packaging used in the month as a %)

Percentage of waste recycling in a month (dividing the volume of waste recycled in the month by the total volume of waste generated in the month as a %)

Percentage of suppliers that are certified sustainable (dividing number of suppliers certified by a recognised sustainability standard by the total number of suppliers as a %)

Energy usage (lower utility costs, energy use intensity (EUI) is a useful metric - low EUI signifies good energy performance.

Electricity consumption per kilometre travelled when delivering to retailers (total electricity used for charging delivery vehicles in a month by the total kilometres travelled by vehicles in that month.

Question 2

What is meant by responsible accounting?

Answer 2

Making individual managers responsible for achieving targets.

Managers are assigned specific targets they are expected to achieve.

Would expect managers to take action to achieve these targets if there is a difference between actual performance and targeted performance.

Under responsible accounting, the managers performance should be evaluated only on the areas that they can control.

Question 3

Benefits of KPI dashboard

Answer 3

KPI dashboard is a data visualisation that allows large volumes of complex data to be displayed in a visually appealing and accessible way. Spread sheets and financial reports can be difficult to understanding. KPI graphics are more user friendly and intuitive.

KPI dashboard will display the key performance indicators of the business in a real-time format.

Synchronising real-time data with data visualisation tools gives live up to date number in a clear informative style. Allows quicker response to business changes rather than waiting for weekly/monthly reports.

Having a high level overview of progress towards KPIs fosters better collaboration and communication amongst users.

KPIs can also help users to spot discernible patterns in the data and unearth potential opportunities and areas of strength.

Question 4

KPIS to monitor performance of new product

Answer 4

Gross profit margin

Growth in sales month on month

Capacity utilisation (how much of our production capacity is being utilised)

Production time per pack

Inventory days