KPI002 | Budget performance V2.6

Key Performance Indicator

This KPI expresses the company’s ability to effectively plan the ship’s operating costs (e.g. predictable costs, good budgeting).

Basically the overall costs deviation (management, purchasing, operation, M&R, crewing) vs. budgets. The cost deviation is adjusted for agreed additional expenditure. The KPI expresses last years’ performance. As the KPI expresses deviations both positive and negative, the KPI Value is always converted to a positive value.

Unit	%
Scope
Calculation period

Formula

[formula]KPI_{Value} = \frac {|PI012 - (PI011 - PI010)|} {PI012} * 100\% [/formula]

PI010	Last year’s AAE (Additional Authorized Expenses)
PI011	Last year’s actual running costs and accruals
PI012	Last year’s running cost budget

Example

A	Last years running cost budget:	= 1.2 M US$
B	Last years actual running costs and accruals:	= 1.5 M US$
C	Last years Authorized Additional Expenses (AAE):	= 0.25M US$
KPI Value	Budget performance	[formula]= \frac {\|A - (B -C)\|} {A} * 100\% = \frac {\|1.2 - (1.5 - 0.25)\|} {1.2} * 100\% \approx 4.17 \%[/formula]

Rating Formula

[formula] \begin{align} \displaylines { KPI_{Value}\\ KPI_{MinReq} = 10\\ KPI_{Target} = 2 } \end{align} [/formula] [formula] KPI_{Rating} = 100 \times \frac {KPI_{Value} - KPI_{MinReq}} {KPI_{Target}-KPI_{MinReq}} [/formula]

Rating Example

KPI Value	= 4.17%
KPI MinReq	= 10%
KPI Target	= 2%
KPI Rating	[formula]=KPI_{Rating} = 100 \times \frac {KPI_{Value} - KPI_{MinReq}} {KPI_{Target}-KPI_{MinReq}} = 100 \times \frac {4,17 - 10} {2-10}) = 73[/formula]