Key Performance Indicators - Essay Example

ManagementTable of ContentsI. Question 1 1II. Question 2 2References 3I. Question 1The case in effect is about maximizing both customer service and efficiency in a new restaurant that has both an eating in and a car-takeout ordering system. Choosing the appropriate KPIs is about choosing the right metrics that will yield the greatest efficiency and customer service balance. Efficiency is about deploying the most optimal number of staff, and serving the most number of customers at the least amount of time.

while customer service is about being able to deliver on important customer service metrics like order to fulfillment lead times, waiting times between customers, maximizing the size of the queue for both cars and dine-in customers, payment queues, the number of people served per table. These twin concerns are of course of paramount concern for the firm, given that both impact profitability. Customer service affects the top-line revenues, in that the greatest number of people served results in the greatest amount of revenues for the firm, while efficiency metrics relating to the most efficient use of staff to serve the greatest amount of customers impact costs.

When both costs and revenues are optimized, this results in the greatest possible bottom line results for the firm. In the case at hand, the KPIs are arguably those that capture best the kind of efficiency and customer service gains that are optimal for the restaurant, and for these chosen KPIs the different shifts are measured. The simulation results detail many different KPIs that can potentially capture the most important data that serve the purpose of optimizing both revenues and costs as discussed above, and given the kinds of data collected for the different shifts, the choices were made based on what kind of metrics will yield the most in terms of optimizing both customer service levels and staffing levels (Simul8 Corporation 2015). II. Question 2In the ideal case the best shift to be chosen is one that employs the least amount of staff while at the same time maximizing customer service metrics that relate to the five KPIs chosen for this analysis.

Without the KPIs, one would be inclined to choose that shift that employs the least amount of staff. Going the other extreme, the best shift would be the one that achieves the greatest customer service levels in terms of queue sizes and waiting times. Obviously the latter impacts costs, while the former impacts customer service and therefore revenues. It is therefore a balance, and that balance is a function of the five KPIs chosen on the one hand and the staffing levels on the other. Obviously from the data shift 5 is not the best in terms of staffing levels.

Shift 3 has the least amount of staff throughout the day. On the other hand, the differences in staffing levels throughout the day maximizes the customer service levels for shift 5, as evidenced from the various KPI results showing the greatest gains for the levels of customer service across the different waiting times, queue sizes and queue times for both dine-in and car takeout metrics. It is no surprise that while shift 3 employs the least staff, its customer service KPI results are the poorest, especially for max queue sizes for queue service, at 76.

For shift 5 this number is just 19, which is fantastic given the gains in customer service by adding just a minimal number of additional staff. This reasoning applies moreover to the other KPIs, where on balance shift 5 achieves the greatest KPI metric gains for the least number of additional staff, giving the restaurant the best revenue gains bang for the buck so to speak for the least additional staffing costs throughout the day (Simul8 Corporation 2015). ReferencesSimul8 Corporation (2015).

Simulation results. Results Manager