Key Performance Indicators (KPIs) for Administrative System

MonitoR aDMINISTRATIVE sYSTEM
Assignment 2

Key Performance Indicators (KPIs) for administrative system
System performance criteria
The criteria for the performance of expense approval system for Woolworths is to compare the
amount of costs reduced and degree of efficiency improved within the decision making ability of
the store managers. Hence, the system performance criteria has been outlined below:
1. Costs reduced by system post one month of implementation
2. Decision making efficiency improved towards purchasing products
3. Overall cost benefits realised by the system in duration of 30 days
The established criteria for the system performance will enable identification of the effectiveness
achieved by the administrative system.
Usage guidelines
It is important to consider that the users are require to identify whether or not they are getting
accurate recommendations for the repurchase of products and the extent to which they are
required to wait before placing the orders once the system recommends to make purchases. The
managers are subject to approving or rejecting the request for purchases for products that are
about to reach out of stock status.
Security guidelines
The security guidelines for the system is that the passwords of the store managers needs to be
changed every month or 30 days to ensure that any unauthorised access are prevented.
KPIs
Following are the key performance indicators of the system:
1. Cost reduction achieved in 30 days
2. Number of users able to use the system
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3. Number of errors within 30 days
4. Number of false recommendations provided
Monitoring report
Monitoring data
The monitoring data presented below indicates the manner in which the system performed
against the time defined KPIs:
Cost Reduction
Prevented additional purchases
Cost benefits from just-in-time approach
Expenses caused by system
$0
$200
$400
$600
$800
$1,000
$1,200
KPI 1: Cost reduction
Cost Reduction Prevented additional purchases Series3
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