KPI002 | Budget performance V4.0

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	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

Ranking calculation example

Step 1: Calculate KPI value

PI010	Last year’s AAE (Additional Authorized Expenses)	= 0.25M US$
PI011	Last year’s actual running costs and accruals	= 1.5M US$
PI012	Last year’s running cost budget	= 1.2M US$
[formula] KPI002_{Value} [/formula]	[formula] = \frac {\|PI012 - (PI011 - PI010)\|} {PI012} * 100\% [/formula]	[formula] = \frac {\|1.2 - (1.5 - 0.25)\|} {1.2} * 100\% [/formula]	[formula] = 4.17%[/formula]

Step 2: Calculate percentile rank by comparing KPI value against other ships with the same criteria. We assume that another 99 (100 in total) participate in the ranking with the same criteria and our ship has position 50 and you are the only ship in that rank.

Step 3: Calculate the percentile rank by capturing the count of all participant below your rank (cl). The frequency of ships in your same rank (fi). The total number of ships in the ranking segment (N).

[formula] KPI002_{Percentile Ranking} = \frac{cl+05*fi}{N} * 100 = \frac{50+0.5*1}{100} * 100 = 50.50 [/formula]

Interpretation: Based on the above example, we could say that, when it comes to KPI002 Budget Performance, this ship belongs in the 50.50th percentile of the ships that are being compared with based on its ranking criteria in the respective quarter.