KPI002 | Budget performance V3.0

Key Performance Indicator

This KPI expresses the overall budget deviation.

Interpretation	The KPI reflects the company's ability effectively plan the ship's operating costs. It does not value the cost effectiveness. Deviations both positive and negative are regarded in the same way.
Unit	%
Scope	Ship level
Calculation period	Previous fiscal year

Formula

[formula]KPI002 = \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

PI012	Last years running cost budget	= 1.2 M US$
PI011	Last years actual running costs and accruals	= 1.5 M US$
PI010	Last years Authorized Additional Expenses (AAE)	= 0.25M US$
KPI Value	Budget performance	= 4.17%

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]