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Hello tutor. i am getting frustrated, i tend to mix up financial,NFPIs and operating performance indicators, Normally i am fine ,but when doing question i just somehow end up mixing Financial performacne, Operating performance and NFPIs
can you give me 1 ‘rule of thumb’ to remember which of 3 is which?Hi, I am ofcourse not the tutor but I thought I’d try help.
Financial measures use figures from your financial statements where as NFPIs look at things like defects per employee or shift. Wastage per shift etc. Or no of returns per product. They dont come anywhere near the financial statements. Some other measures such as customer satisfaction is even harder to put any number on.
Operating profit measures are measures of profitability to sales so perhaps the word operating can remind you that the figures are calculated around the operating profit. Gross margin, profit margin etc all operating perf measures.
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