KPIs for facility's performance assessment, Part II: identification of variables and deriving expressions for core indicators
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Purpose The purpose of this paper is to identify key variables that affect the quantifiable key performance indicators (KPIs) and to derive equations to measure these indicators. Qualitative KPIs are also discussed in terms of the aspects that need to be covered while carrying out qualitative performance assessment. Design/methodology/approach A combination of literature and an industry opinion-based qualitative approach is applied to develop equations to calculate the quantifiable KPIs. A facility asset management consulting firm is included in the process of deriving the equations. Key aspects of a facility's qualitative performance assessment are categorized and discussed by performing a literature review. Findings Mathematical expressions for core performance indicators are presented and discussed along with key variables. In addition, the information needed to quantify these core indicators is also discussed. Research limitations/implications This paper represents the second step towards establishment of a relevant list of quantifiable and measurable core KPIs, which were identified and categorized in Part I of this paper. In Part II, the authors derive equations to quantify the core KPIs. Future research is needed to use relevant information from industry for validating these equations. Practical implications A need for a concise and relevant list of KPIs was identified in Part I of this paper. Part II provides an approach to quantify the core KPIs based on information that is available in the industry. This research will help facility management professionals in not only selecting the indicators of choice, but also quantifying them based on available information yielding enhanced facility management decisions with measurable facility performance outcomes. Originality/value This paper provides equations and variables to measure a facility's physical, functional and financial performance using both quantitative and qualitative performance assessments.
