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Sample list of Performance Indicators and Definitions

This listing is intended as a guide to those who have to provide detail on the performance indicators which are to be used in their organisation/business. Definitions, measurement and provisional targets are set out below:

Business or Financial Indicators

F1. Collection ratio (%)

Definition: Revenue collection ratio is the ratio of revenue (in $) collected for water and wastewater services divided by revenues billed for these services in each financial year.

Measurement: Based on annual billing and revenue collection returns provided by the Billing and Collection Department expressed as a percentage (%).

Target: 85% by the year xxxx and a minimum of 90% by xxxx.

F2. Cash collection ratio

Definition: The Cash collection ratio represents the amount of cash/bank collections expressed as a proportion of total collections (including barter and set-offs).

Measurement: Based on collection data provided by the Billing and Collection Department and expressed as a percentage (%).

Target: 70% cash collection ratio by xxxx and increase by at least 5% per year thereafter to achieve a minimum level of 80% by xxxx.

F3.Working ratio (%)

Definition: The working ratio is the total annual operational expenses (excluding depreciation and debt related expenses) divided by the annual income.

Note: A working ratio of more than 1.0 means that the business fails to recover all of its annual operating costs from revenues. Less than 1.0 means that it recovers its operating costs and some (or all) of its investment costs.

Measurement: Measurement is based on operations financial data and annual billing and revenue returns provided by the Billing Department, expressed as a simple ratio.

Target: to improve the ratio by at least 5% each year from base data for xxx and achieve a working ratio of 1.0 or less in xxx and 0.90 or less by xxxx.

F4. Gross profit margin (%)

Definition: Gross profit margin is the amount of profit earned on every $ of revenue. This is calculated by dividing the gross profit (revenues less operating expenses and depreciation) by revenues.

Measurement: Measurement is based on figures recorded in the Income Statement and expressed as a percentage (%).

Target: to achieve a positive gross profit margin by xxx and an increase by a minimum of 1% per year thereafter.

F5. Operating cost efficiency (%)

Definition: This indicator compares the annual % increase in operational costs with the corresponding % increase in annual inflation.

Measurement: The operating cost increase is based on the difference between operating costs (excluding depreciation) for providing water and wastewater services for the current and previous year expressed as a percentage (%) of the previous year’s costs. This is then compared with the Consumer Price Index for the year.

Target: that annual increases in operating costs (excluding depreciation) each year are less than the relevant Consumer Price Index for the same period.

F6. Tariff cross-subsidies

Definition: This indicator compares different tariffs between domestic and industrial customers in order to monitor the progress being made in eliminating cross subsidies.

Measurement: Based on the ratio of approved tariff at the year end for industrial customers divided by the approved tariff for domestic customers.

Target: 1.0 by xxx for all groups (i.e. elimination of all cross subsidies by xxx).

F7. Average Collection Period (days)

Definition: The average time for debtors to pay

Measurement: Based on collected data provided by the Billing and Collection Department expressed in days.

Provisional Target: 5% improvement (i.e. reduction) each year from base data level.

Operational and Customer Service Indicators

OP1. Per capita production (l/c/d)

Definition: Per capita production is the average annual volume of water supplied into the distribution system for domestic consumption (including purchased water if any but excluding technical water, non potable water, water supplied to industry, agriculture, etc.) divided by the total domestic population served and the number of days (365 or 366 as appropriate).

Measurement: Measurement of per capita production requires an accurate figure for the volume of water produced at the sources and delivered to the city distribution system based on bulk water meter readings and an accurate estimate of water supplied to industry and budget organisations, expressed in l/capita/day.

Provisional Target: 350 litres per capita per day by xxx or 5% improvement (i.e. reduction) each year from base data level whichever is more appropriate.

OP2. Per capita consumption (l/c/d)

Definition: Per capita consumption is the average annual volume of water delivered to customers divided by population served and the number of days (365).

Measurement: Requires accurate figures for the volume of billed water delivered to domestic customers based on meter readings or calculated on the basis of standard water norms, expressed in l/capita/day.

Provisional Target: 150 litres per capita per day by xxx, or 5% improvement (i.e. reduction) each year from base data level which ever is more appropriate[1].

OP3. Extent of metering for domestic and non-domestic customers (%)

Definitions:

OP3: Overall Volume of water delivered to all customers (m3 billed) that is metered (and billed by metered volume) divided by total volume of water delivered to all customers (m3 billed).

OP3a: Volume of water delivered to domestic customers (m3 billed) that is metered (and billed by metered volume) divided by total volume of water delivered to domestic customers (m3 billed).

OP3b: Volume of water delivered to budget institution customers (m3 billed) that is metered (and billed by metered volume) divided by total volume of water delivered budget institution customers (m3 billed).

OP3c: Volume of water delivered to Industrial customers (m3 billed) that is metered (and is billed by metered volume) divided by total volume of water delivered to Industrial customers (m3 billed).

Measurement: The volumes of water delivered should be available from the Billing Department for the various customer categories e.g. (i) domestic (ii) social, budget organisations, and other institutional (iii) commercial and industrial.

Provisional Targets:

OP3: 90% by xxx.

OP3a: 90% by xxx.

OP3b: 100% by xxx.

OP3c: 95% by xxx

or 5% improvement (i.e. increase) each year from base data level whichever is more appropriate.

OP4. Continuity of Service (Average Hours of Service per day to Customers)

Definition: Average hours of service per day for water supply[2]

Measurement: need to determine the hours per day during which the water supply service is provided to domestic customers and the daily figure converted to average monthly and annual figures. The monthly figure will indicate any seasonal effects (e.g. interruptions due to bursts). Where the continuity is significantly affected by different sources and/or different supply zones then the continuity for each supply zone should be reported separately.

Target: 95% for each month (i.e. less than approx. 1 hr average interruption per day) or 5% improvement (i.e. increase) each year from base data level (2004) which ever is more appropriate.

OP5. Drinking water quality compliance (bacteriological, physical, chemical, and aesthetic) at the plant outlet

Definition: Drinking water quality compliance is measured as the %age of all samples passing the drinking quality standards for all parameters within a specific group (if at least one requirement within a group is not met the whole sample is considered as having failed to meet the standard in this group.

The following groups to be reported on a % failure basis each month, and averaged on a yearly basis from samples taken at the outlet to the treatment works:

a) Micro-biological parameters (except viruses) - Number of micro-biological tests for water and number of failures expressed as a percentage

b) Chemical parameters - Number of chemical tests for water and number of failures expressed as a percentage

c) Viruses - Number of tests for viruses and number of failures expressed as a percentage

d) Radiological parameters - Number of tests for radiological tests and number of failures expressed as a percentage.

Measurement: The measure is the % compliance for each of the above three categories, ideally measured and reported monthly to demonstrate seasonal effects.

Provisional Targets:

Compliance with standards:

a) 99% by xxxx

b) 90% by xxxx

c) 100% by xxxx

d) 100% by xxxx

or 5% improvement each year from base data level which ever is more appropriate.

OP6. Drinking water quality compliance (bacteriological, physical, chemical, and aesthetic) in the distribution system

Definition: Drinking water quality compliance is measured as the % of all samples passing the drinking quality standards for all parameters within a specific group (if at least one requirement within a group is not met the whole sample is considered as having failed to meet standard in this group.

The following groups to be reported on a % failure basis each month, and averaged on a yearly basis from samples taken at representative points in the distribution system:

a) Micro-biological parameters (except viruses) - Number of micro-biological tests for water and number of failures expressed as a percentage

b) Chemical parameters - Number of chemical tests for water and number of failures expressed as a percentage

c) Viruses - Number of tests for viruses and number of failures expressed as a percentage

d) Radiological parameters - Number of tests for radiological tests and number of failures expressed as a percentage.

Measurement: The measure is the % compliance for each of the above three categories, ideally measured and reported monthly to demonstrate seasonal effects. Note: Only those results associated with normal operating conditions and sampling regimes are reported. Additional sampling as a result of identifying problems is not included in the measurement.

Provisional Targets:

Compliance with standards:

a) 95% by xxxx

b) 80% by xxxx

c) 100% by xxxx

d) 100% by xxxx

or 5% improvement each year from base data level on each group whichever is more appropriate

OP7. Water Borne Disease

Definition: The indicator is the number of hospitalised cases per year for each of the following diseases which are attributed directly to water supply in the supply area divided by the total population served:

a) Disease A

b) Disease B

Measurement: Measurement shall be based on the number of hospitalised cases in the supply area each year as provided by the Regional Health Authority, divided by the total population served.

Provisional Targets: No available data. 5% improvement (i.e. reduction) in reported cases each year.

OP8. Effluent quality standards compliance

Definition: Effluent quality compliance is measured as the %age of all samples passing the effluent quality standards. These will normally cover: BOD5, NH3 COD, Total Nitrogen, Total Phosphorus, suspended solids, coliforms and for heavy metals (cadmium and copper).

Measurement: Measurement will be based on laboratory results for each determinand, summed to give an overall picture of compliance.

Target: 95% compliance over a 12 month period with national standards for each determinand by xxx or 5% improvement (increase) each year from base data level whichever is more appropriate.

OP9. Extent of wastewater treatment

Definition: This indicator represents the proportion of collected sewage that is subject to primary treatment (including screening) and by biological treatment.

Measurement: The volume of wastewater treated (by screening followed by physical settlement and biological treatment) compared with the total volume of wastewater collected expressed as a %age.

Provisional Target: 90% by xxxx or 5% improvement each year from base data level whichever is more appropriate

OP10. Water loss components

Definitions:

OP10a - Overall Water Loss ratio

Overall water loss ratio is the difference between annual overall volume of water abstracted from the water source and annual water volume water delivered to customers including technical water and billed, divided by the annual overall volume of water abstracted expressed as a %age.

OP10b - Water preparation loss ratio

Water preparation loss ratio is the difference between annual water volume abstracted from the water source and annual volume of water supplied into the distribution network together with any technical water supplied, divided by the annual volume of water abstracted expressed as a %age.

This KPI indicates the losses in raw water transmission and the water treatment losses (e.g. water used for backwashing the filters etc).

OP10c - Unaccounted-for water consumption ratio

Unaccounted for water ratio is the difference between annual volume of water supplied into the distribution networks and annual volume of water delivered to customers, divided by annual volume of water supplied into the distribution networks expressed as a %age.

This KPI indicates losses in the distribution system in %age terms. Any ‘technical’ usage of water in the distribution network (e.g. flushing and fire fighting should be estimated using norms or meters and taken into account as accounted-for water in the estimation of water delivered).

OP10d - Specific and unaccounted for losses per connection (or km of pipework) per day

Specific and unaccounted for losses per km of pipework is the difference between annual volume of water supplied into the distribution network and the annual volume of water delivered to customers divided by the number of connections or length of the water distribution network and expressed as m3/connections/day. Where the number of connections is less than 20 per km, as m3/km/day.

Any ‘technical’ usage of water in the distribution network (e.g. flushing and fire-fighting) should be estimated using norms or meters and taken into account as accounted-for water in the estimation of water delivered).

This KPI indicates losses in the distribution system in volumetric terms related to either the number of connections or the length of the distribution network (depending on the density of connections).

For assessing the efficiency of the distribution system management expressing real losses as a percentage of the total system input is unsuitable, as the performance indicator fails to take into account the key network influences on the real losses:

a) Location of customer meter in the service connection

b) Average operating pressure

c) Infrastructure condition

d) Percentage of time system is fully utilizes

e) Types of soil and ground condition

Measurement: Accurate measurement of water abstraction and production requires accurate intake and source meters at the outlet to the treatment plant. Accurate measurement of water delivered requires accurate domestic metering or accurate estimates for un-metered consumers based on pilot project measurement of representative blocks. Measurement is expressed as volume of water “lost” per km of water distribution network per day. Separation of the overall UfW into “physical” and “commercial” losses requires good information concerning all the sub-components of UfW. Setting up of District Meter Areas and measuring night flows in each DMA will be the long term goal for leakage reduction.

Targets:

OP10a: 3-5% improvement (i.e. reduction) each year is proposed from xxxx base level

OP10b: Maintain the process water losses so that losses do not fall below the regulation standards

OP10c: 5% improvement (i.e. reduction) each year from base level

OP10d: 5% improvement (i.e. reduction) each year from base level

a) m3/per km/day (where the number of connections is 20 per km)

3-6% reduction per annum for 5 years from 2004 is proposed.

OP11.Water Supply Pipe Break frequency

Definition: Total number of water distribution pipe breaks per year divided by the length of the water network in km.

Measurement: Measurement based on operational information immediately after pipe burst repairs. The information should also include pipe material, age, condition and any other related information. Pipe bursts in buried chambers and in buried underground pipelines should both be included in this measure.

Target: Less than 5 breaks per km per year or 5% improvement (i.e. reduction) each year.

OP12. Sewerage blockage frequency

Definition: Total number of sewerage pipe blockages caused by structural collapse of the sewer per year divided by the length of the network in km

Measurement: Measurement based on operational information immediately after repairs. The information should also include pipe material, age, condition and any other related information.

Provisional Target: Less than 8 pipe blockages per km per year or 5% improvement (i.e. reduction) each year.

OP13. Energy Efficiency (kWh/m3/supplied)

Definition: Unit energy usage is the electricity (and/or gas) consumed for water and wastewater services including treatment and pumping divided by the volume of water supplied over the same period.

OP13 - Overall Energy Efficiency (water and wastewater)

OP13a - Energy Efficiency: Water

OP13b - Energy Efficiency: Wastewater

OP13c - Energy Efficiency: Technical water

Measurement:

OP13-Overall Energy Efficiency: Excludes technical water. Energy expressed in kWh per year usage for water and wastewater services divided by volume of drinking water billed per year

OP13a-Energy Efficiency-Water services: Energy used for water abstraction, treatment and distribution. Energy expressed in kWh per year for energy usage for drinking water services divided by volume of drinking water billed per year.

OP13b-Energy Efficiency-Wastewater services: Energy used for wastewater collection, treatment and disposal. Energy expressed in kWh per year for energy usage for wastewater services divided by volume of wastewater billed per year.

OP13c-Energy Efficiency-Technical water services: Energy used for technological water abstraction and distribution. Energy expressed in kWh per year for energy usage for technological services divided by volume of technological water billed per year.

Provisional Targets: 5% improvement (i.e. reduction) each year from base level.

OP14. Staffing levels (Numbers of staff per 1000 population)

Definition: Total number of staff expressed per thousand population.

Measurement: The total number of staff divided by the population served in thousands. Should be separated into water and wastewater services.

Provisional Targets: Less than 5 staff per 1000 customers or 5% improvement (i.e. reduction) each year from base level.

SOME Additional (Optional) KPI Definitions

IN 01. Key training delivered to staff

Definition: Staff trained in defined areas under agreed training programmes.

Measurement: Number of training days divided by number of work days of employees (%age).

Target: Training days in each year divided by number of work days of employees

IN 02. Extent of computer-based billing system installation

Definition: The aim is for a fully computerised billing and collection system to be designed and implemented, that can be integrated into the management information systems (MIS) and allows the direct billing of all customers on the basis of metered consumption.

Measurement: Measurement is on the basis of progress against an approved development and implementation plan which includes key milestone dates.

Targets: An approved systems development and implementation plan to be prepared by xxxx and modern computerised based billing systems to be implemented no later than end of xxxx and integrated with MIS.

IN 03. Extent of computerised commercial and financial systems installation

Definition: The extent to which fully integrated financial management system are implemented.

Measurement: Measurement is on the basis of progress against an approved development and implementation plan which includes key milestone dates.

Targets: An approved systems development and implementation plan is prepared by March 2005 and modern computerised based billing systems are implemented no later than end of 2006 and integrated with MIS.

IN 04. Proportion of water mains recorded on GIS

Definition: This indicator measures the extent to which records of all the underground water mains assets are transferred from existing paper records or determined on site for missing records to Geographical Information System (GIS) including details of diameter, age, condition and material of pipes, chambers/manholes and fittings (e.g. valves, hydrants, meters, etc.).

Measurement: The measure is the aggregated %age complete of the GIS for water mains expressed as length of mains on GIS/ total length of mains.

Target: All water mains transferred from paper based records to GIS by xxxx.

IN 05. Proportion of sewers recorded on GIS

Definition: This indicator measures the extent to which accurate records of all the underground sewerage assets are transferred from existing paper records or determined on site for missing records to GIS including details of diameter, age, condition and material of pipes, manholes and fittings (e.g. overflows, pumping stations).

Measurement: The measure is the aggregated proportion (%) completion of the GIS for sewerage mains expressed as length of network on GIS / total length of network.

Target: All sewers transferred from paper based records to GIS by xxxx.

Sample of World Bank Indicators

This is a sample list of parameters for a water utility:

Utility parameters:

1. Service Population (000)

2. Number of employees

3. Length of the water supply network (km)

4. Rehabilitated network (km)

Information from the sanitary inspection:

5. Number of bacteriological tests for water

6. Number of failed tests

7. Number of cases of Hepatitis A

8. Number of cases of acute diarrhoea

Utility performance data:

9. Number of hours of water supply per day on average

10. Volume of water produced (000 cu/m)

11. Volume of water billed (000 m3)

12. Volume of water billed for the population (000 m3)

13. Volume of water billed industries (000 m3)

14. Volume of water billed to other consumers (000 m3)

15. Number of breaks per quarter

16. Energy consumption for water services (000 kWh)

17. Billed ($)

18. Billed population ($)

19. Billed budget ($)

20. Billed others ($)

21. Actually collected ($)

22. Account receivable end of quarter/year ($)

23. Account payable end of quarter/year ($)

24. Total cost of water production and supply ($)

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