KEY ROLE AREA (KRA) WITH ASSOCIATED KEY PERFORMANCE INDICATORS (KPI)- BUYER

Notes
*
*
Days
PO
PR

The KRA 'Procurement Cycle Time' has no provision for vendor development. This needs to be done proactively in advance
The ratings highlighted in Yellow are for demonstration purpose only
12 Hours of 1 Working Day
Purchase Order
Purchase Requisition

KEY ROLE AREA (KRA)

I. PROCUREMENT CYCLE TIME
KPI MEASURE
Sn

1
2
3

KPI Description

Score
1 to 5

Proportion of
the Total
Weight (%)

Total
Weight
(%)

Insert Value

15

15

Insert Value

Insert Value

15

25

25

Score
1 to 5

Proportion of
the Total
Weight (%)

Total
Weight
(%)

KPI Bench Mark (Days)

Convert PR to PO
Convert PR with Term Agreement
to PO
PO Acceptance from Vendor

Total (Nos)

Deviation (Nos) Deviation (%)

Total
II. QUALITY
KPI MEASURE
Sn

KPI Description

Inference

Count (Nos)

Tracking

-Monthly Report on Delay

-Exception (e.g Awaiting Technical Approval)
to be attached on PO
-Monthly Report on Delay
-Monthly Report on Delay

Tracking

Ordering on Vendor other than Sole Source

Non Compliance

-Monthly Report on Exception

Ordering on Vendor not Technically Approved

Non Compliance

-Monthly Report on Exception

Ordering on Vendor without Compliance to Material Master

(MM)

Non Compliance

3.75

3.75

-Monthly Report on Exception

More than 2 Times Rejections from same Vendor

Vendor Evaluation

3.75

3.75

-Monthly Report on Exception

Vendor's Lead Time:

Delay in Delivery of Critical Orders from the Date Agreed in
the PO

Vendor Evaluation

3.75

3.75

-Monthly Report on Exception

Vendor Development: Benefits Derived to be approved by the

Manager

Vendor Development

2.5

2.5

Chronology and Documentation in the PO. Compliance to the

Standards Documentation. Quality of Justification

Non Compliance

1.25

1.25

35

25

25

Score
1 to 5

Proportion of
the Total
Weight (%)

Total
Weight
(%)

Total

-Monthly Report on Vendor Development

-Monthly Report on Exception

III. COST SAVINGS

KPI MEASURE
Sn

KPI Description

Total Spend (USD)

Savings (USD)

Savings (%)

Remarks

Cost Savings vis--vis Weighted

Average Price

7.5

7.5

-Monthly Report on Cost Savings

Placing order on High Priced

Vendor vis--vis Weighted Average
Price without providing Acceptable
Justification

7.5

7.5

-Monthly Report on Cost Escalations

10

15

15

Score
1 to 5

Proportion of
the Total
Weight (%)

Total
Weight
(%)

Total
IV. PROCESS IMPROVEMENTS
KPI MEASURE
Sn
1

KPI Description
Acceptance of Process Improvements

Inference
Process Improvement

Count

Remarks
-Monthly Report on Process Improvements

Payment Terms: Conversion of Payment Terms from 30 Days

to 60 Days Credit or from Advance Payment to 30/ 60 Days
Credit

Process Improvement

Total

-Monthly Report on Payment Terms

Improvements

10

10

10

Score
1 to 5

Proportion of
the Total
Weight (%)

Total
Weight
(%)

-Monthly Report on HSS Recommendation

-Monthly Report on HSS Non compliances

V. HEALTH SAFETY AND SECURITY (HSS)

KPI MEASURE
Sn

KPI Description
Inference

Count

HSS Recommendations: Acceptance of Recommendations by

Manager

Recommendations

Non Compliances to Standard Operating Procedures (SOP)

Non Compliances

Total

10

10

10

Score
1 to 5

Proportion of
the Total
Weight (%)

Total
Weight
(%)

Remarks

VI. GENERAL
KPI MEASURE
Sn

KPI Description

Inference

Count

Remarks

Awards and Appreciation

Awards and Appreciations

-Monthly Report on Awards

Violation of Procurement Ethics

Non Compliances

-Monthly Reports on Exceptions

Provocative Communication and Misconduct with

Stakeholders, Users, Manager, Colleagues, Vendors et al

Non Compliances

-Monthly Reports on Exceptions

Notifications Received by E-mail/ Letters from Manager

Non Compliances

-Monthly Reports on Notification Issued

Delay in submission of Payment Request to Accounts

Non Compliance

-Monthly Report on Exception

Total

25

Total
Weight
(%)
4.5

VII. INDIVIDUAL DEVELOPMENT

Visit to Vendor Premise with Vendor Evaluation Report

Proportion of
the Total
Weight (%)
4.5

Trainings attended as per the Training Matrix

4.5

4.5

Upgraded Professional Qualifications

Total

15

10

10

GRAND TOTAL

80

100

Sn

KPI Description

KPI MEASURE
Count

Score
1 to 5

100

Remarks
-Monthly Report of Recommendation
-Monthly Report on Training Attended
-Monthly Report on Upgraded Professional
Qualifications