IMPROVEMENTS TOWARDS THE IDENTIFICATION AND QUANTIFICATION OF RELATIONSHIPS BETWEEN KEY PERFORMANCE INDICATORS

Johannes Lodewyk Jooste, Louis Jona Botha

Abstract


The quantitative relationships at the performance measurement system (QRPMS) is a methodology for identifying and quantifying relationships between key performance indicators. These relationships present additional information for decision-making purposes. QRPMS employs the Guttman-Kaiser criterion (K1) to complete a critical step during the methodology. This study presents evidence that the K1 criterion has limitations that compromise the reliability of QRPMS’s results. An improved QRPMS version is developed, and the results of the existing and improved QRPMS are compared in a mining industry case study. It is shown that the improved QRPMS delivers more accurate and reliable results.


Keywords


key performance indicator relationships; performance measurement; principle component analysis; QRPMS

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DOI: https://doi.org/10.7166/29-2-1872

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Copyright (c) 2018 Johannes Lodewyk Jooste, Louis Jona Botha


ISSN 2224-7890 (on-line) ; ISSN 1012-277X (print)


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