Question

(PLEASE TYPE THE ANSWERS) (ACCOUNTING 640)

Consider performance measurement in a department that you work in or are familiar with. Do you use a balanced scorecard? What are the key performance indicators that you drive towards? What type of behaviors do they drive? Are they discussed extensively and have become part of the corporate culture? If you don’t use them, do you think they could be useful? What types of KPI’s would you choose for your department or area that you are familiar with that would drive employee learning & growth, customer perceptions, internal processes, and financial growth? If you currently are using them, which of these 4 areas are your KPI’s mostly focused on? How are they measured? If you aren’t using KPI’s yet, how would you measure the ones you have chosen? How easy are these to find?

Answer 1

I work in Quality Testing department. In our department our department performance is measured by various parameters. They are as follows:

1) Productivity: in this it is seen that how much the team member is productive as per standard policy. For example in 8 hrs(1 day) he can deliver 1 test cases. If in a month of 20 days he delivered 20 test case then his Productivity will be calculated as follows:

Actual test case / expected test = (20/20)*100=100%

2) Scheduled variance: in this it is checked that was deliverable delivered on time or not. For example if expected delivery date is 11th Oct 2019 and it was delivered on 10th October 2019. Project was started on 1st October 2019. It will be calculated as follows:

Actual number of days taken / expected number of days required (10/11)*100=90.91%

3) Defect leakage: how many issues found in production as compare to defect found in testing. For example in testing 10 defect found and in Production 2 defect. Calculation is as follows:

Defect found in production/defect found in testing

=(2/10)*100=20%

4) test coverage: this is for checking the how many requirement are been tested. For example there are 80 requirements and 75 requirements are been covered. This is calculated:

No of requirement covered / total no of requirement = (75/80)*100=93.75

This all are very important for the project. If possible work is performed properly with quality on time then business will grow and financially it will sound. They are very easy to derive.