What Is Operations KRA/KPI

Operations Professional Job Description

As an Operations professional, you will play a crucial role in managing and optimizing various operational processes within the organization. Your primary responsibilities will include overseeing efficiency, quality, and productivity in different operational areas.

Key Responsibility Areas (KRA) & Key Performance Indicators (KPI)

1. Operations Efficiency

KRA: Ensuring operational processes are streamlined for maximum efficiency.

Short Description: Improve operational efficiency through process optimization.

• 1. Average processing time per task
• 2. Percentage reduction in operational costs
• 3. Number of process improvements implemented
• 4. Customer satisfaction score related to operational efficiency

2. Inventory Management

KRA: Managing inventory levels to meet demand while minimizing excess stock.

Short Description: Optimize inventory levels for cost-effective operations.

• 1. Inventory turnover rate
• 2. Percentage of stockouts
• 3. Accuracy of demand forecasting
• 4. Percentage reduction in carrying costs

3. Quality Control

KRA: Ensuring products or services meet quality standards.

Short Description: Maintain high-quality standards in operations.

• 1. Defect rate per product/service
• 2. Percentage of products/services meeting quality criteria
• 3. Customer complaints related to quality
• 4. Compliance with quality certifications/standards

Real-Time Example of KRA & KPI

Real-World Example: Supply Chain Management

KRA: Efficiently managing the supply chain to ensure timely deliveries and cost-effective operations.

• KPI 1: On-time delivery performance
• KPI 2: Inventory turnover ratio
• KPI 3: Supplier lead time reduction
• KPI 4: Cost savings through optimized logistics

By improving these KPIs, the organization was able to enhance supply chain performance, reduce costs, and increase customer satisfaction.

Key Takeaways

• KRA defines what needs to be done, whereas KPI measures how well it is done.
• KPIs should always be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
• Regular tracking and adjustments ensure success in Operations.

Adhere to this structured layout for defining KRAs and KPIs in Operations to drive success and efficiency in operational processes.