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

Authors

  • Johannes Lodewyk Jooste Department of Industrial Engineering, Stellenbosch University, South Africa
  • Louis Jona Botha Department of Industrial Engineering, Stellenbosch University, South Africa

DOI:

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

Keywords:

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

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.

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Published

2018-08-31

How to Cite

Jooste, J. L., & Botha, L. J. (2018). IMPROVEMENTS TOWARDS THE IDENTIFICATION AND QUANTIFICATION OF RELATIONSHIPS BETWEEN KEY PERFORMANCE INDICATORS. The South African Journal of Industrial Engineering, 29(2), 92–101. https://doi.org/10.7166/29-2-1872

Issue

Vol. 29 No. 2 (2018)

Section

General Articles

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