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KPls can mislead about efficiency
22nd March 2007, Page 26
22nd March 2007
Page 26
Page 26, 22nd March 2007
— KPls can mislead about efficiency
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Keywords :
Cost
WHILE NOTWISHING to detract from the benefits of key performance indicators (Robin Meczes on Freight Best Practice, CM I March), I must sound a note of caution.
Expressing standing (or timerelated) costs as a cost per mile is dangerous and misleading.The more miles you cover in any period of time, even if they are completely wasted, the lower your apparent cost per mile will be — but your cost-efficiency is in fact likely to be going down the drain.
Brian Fish Director, DFF International Bristol