Types of Targets and the Letter Grade Scoring Method

One way to determine index values for standard KPIs is to use the letter grade method, where you grade acceptable and unacceptable scores by a numeric equivalent of A, B, C, D, and F grades.

By customizing the calculation of the Score measure for each standard KPI, you can set the same uniform scaling for assigning index values to standard KPIs. The Letter Grade method applies a standard format and avoids any guesswork when it comes to determining index values.

There are four types of scores, called target attainments, which are each calculated differently when developing the Score measure for a KPI. If you create your Score measures in Application Server using the following formulas, you can apply the Letter Grade method of setting index values.

The Letter Grade method is an optional method for assigning index values for standard KPIs. If you prefer, you can use your own method, and enter your own numbers for the index values for the KPIs box. For example, you may want to use a straight actual versus target calculation for the standard KPI's score.

The four types of targets are:

Target	Purpose	Example KPIs	Optimal Score	Formula
Achievement	For scenarios where you want actual to exceed the target	Revenue, Profit, # Cases shipped, # Customers	Actual greater than target	Actual as a percent of target or (Actual%Target * 100)
Reduction	For scenarios where you want actual to be less than the target	Cost, Expense, Overtime	Actual less than target	100 – (((Actual - Target) / Target) * 100) or 100 -((actual–target)%target))
Absolute	For scenarios where you want actual to always equal target	Inventory	Actual equal to target	100 - (ABS(((Actual - Target) / Target) * 100)) or (100–ABS((actual-target)%target))
Zero	For situations when you want actual and target to be 0 (or close to it)	Product defects, Employee sick days, Employee attrition	Actual and target close to 0	(Actual - Target) Note This target attainment does not follow the Letter Grade method. End of the note.