KPI and cost metrics in Service agreement

This article covers how to use KPIs and cost metrics in service agreements.

With these features, you can set up metrics and acceptance rates, and measure how a supplier is performing on time and cost on work orders.

How to add KPIs to a service agreement

To use KPIs, you must first have a service agreement. You can read more about service agreements in this article: Service agreements.

To set up KPIs, go to the service agreements found in: 

Work orders Service agreements Open the service agreement you want to add a KPI toMore Work order KPIs.

When adding a KPI, you need to define the scope and the KPI parameters. When defining the scope for the KPI, you can select either:

• Include all work orders related to the service agreement
• Define a custom scope for specific assets, buildings, or lots

You can add multiple KPI scopes to the same service agreement. You can only have one scope for all work orders.

When adding multiple scopes, you need to define each one. Selecting all work orders lets you track supplier performance across the entire FM instance, regardless of placement and recurring or ad-hoc work orders.

Defining a custom scope lets you create specific filters if you need to track performance differently or separately across your FM assets, buildings, or lots.

When defining a custom scope, you have the following options:

• Scope name
• Include recurring work orders and/or ad-hoc work orders
• Base the scope on assets, buildings, or lots

Based on your selection, you must specify which assets, buildings, or lots the scope applies to.

In this example, select Assets and pick the specific assets from the list. Use filters to narrow down your results.

Select one or more assets from the list on the left and add them to the list on the right.

The next step is defining the KPI criteria. 

You can set up the following KPIs:

• Time to respond (TTR)
  • Measure the time duration between the status “Ordered, awaiting external” and “Ordered, approved by external" / "Ordered, awaiting approval"
• Time to complete (TTC)
  • Measure the time duration between between status "Ordered, awaiting external" to "Completed, closed"

For each KPI, you need to specify the service level agreement (SLA) threshold, the unit the threshold uses, and the acceptance rate.

The criteria you define here are used to calculate performance, which you can see in the dashboard (see below).

Once a KPI has been set up, it is added to the service agreement. You can add more KPIs or edit and delete the existing KPI from here.

When work orders are tied to the supplier agreement, you can see how the supplier is performing by clicking Show dashboard.

The dashboard gives you an overview of supplier performance based on the selected timeframe, scope, and your KPI parameters. You can sort by period and your scope in the filter buttons.

The calculations are for convivence only. Please verify the results before relying on them.

How to add cost metrics to a service agreement

You can also include cost metrics in your service agreement.

You can add a cost metric for the invoice amount. This will create a dashboard that automatically tracks all invoice amounts on work orders related to the service agreement.

You can open the dashboard by clicking Show dashboard.

The dashboard allows you to easily track how the economy of the service agreement compares to its net price.