3 Reasons to Avoid KPI Indexes and Scores

You might think that rolling up your performance measures or KPIs into a weighted score or composite index is a great strategy to simplify your dashboard, to deal with lots of measures, or to create proxies for intangible goals. Think again.
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[@mohammadaliajlouni3292]

Thank you Stacey for this informative video on KPI composite Indexes. There is a very popular index used in manufacturing, which is Overall Equipment Effectiveness (OEE). OEE is the result of multiplying three measures: Quality% x Performance% x Availability%. This measure is so popular that it has become a standard KPI in manufacturing. It is even used by software for information automation on production lines, such as Manufacturing Execution System (MES). OEE is a built-in feature that is present in all production monitoring software. Mohammad Ajlouni

[@StaceyBarr]

Thanks Mohammad for sharing this. If Performance is clearly defined (it is clearly a percentage, it's not clear what exactly is being counted), then multiplying these three together might not be a true index in the sense I am describing in the video. They could be trying to calculate the percentage of equipment that is performing to spec, all the time? It's hard to know unless we first know the result that this measure is supposed to be evidence of.