Management Information System KPI Report

Submitted by:
Osama Mallick (09-2684)

Submitted To:
Sir Imtiaz Ahmed

Submission Date:
27th March, 2012

Program:
BACHELORS OF BUSINESS ADMINISTRATION

SPRING 2012

National University of Computer & Emerging Science Management Science Department, Karachi, Campus

Company Overview:
Republic Services, Inc is a waste management company. Once the third largest waste management firm in the United States, on June 23, 2008 it announced its intention to purchase its larger competitor Allied Waste Industries for US$6.1 billion in Republic Services stock. The merged company will retain the Republic name and become the second largest (after Waste Management, Inc) non-hazardous solid waste management company in the United States. With its acquisition, Republic inherited Allied Waste's extensive market, including more than 10 million residential, commercial and industrial customers across 128 major markets in 40 states and Puerto Rico. Together with Waste Management, Inc, it handles more than half of all garbage collection in the United States. On December 5, 2008, the merged Republic Services, Inc. relocated its corporate office from Fort Lauderdale, Florida to Phoenix, Arizona (Allied's current headquarters) and controls the following combined operations, compared here with their larger competitor Waste Management, Inc.

KPI
A performance indicator or key performance indicator (KPI) is an industry jargon for a type of performance measurement.[1] KPIs are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged. Sometimes success is defined in terms of making progress toward strategic goals,[2] but often success is simply the repeated achievement of some level of operational goal (for example, zero defects, 10/10 customer satisfaction, etc.). Accordingly, choosing the right KPIs is reliant upon having a good understanding of what is important to the organization. 'What is important' often depends on the department measuring the performance - the KPIs useful to finance will be quite different than the KPIs assigned to sales, for example. Because of the need to develop a good understanding of what is important, performance indicator selection is often closely associated with the use of various techniques to assess the present state of the business, and its key activities. These assessments often lead to the identification of potential improvements; and as a consequence, performance indicators are routinely associated with 'performance improvement' initiatives. A very common method for choosing KPIs is to apply a management framework such as the balanced scorecard.

KPI FOR FINANCE

S.NO KEY PERFORMANCE INDICATOR STRATEGIC OBJECTIVES (PURPOSE OF USING MATRICS) It is used to measure revenues generated by each employee of a company It is used to measure the liquidity of the firm It is used to compare the profitability of a company to that of other firms in the same industry.
It is used to measure the companys ability to generate profits before leverage with its own assets

FORMULAS

Republic Services

Waste Management

Revenue per Employee

Revenue/# of employees

2,025,200,000/ 31000 =65329

3,406,000,000/3 2,600=106,437

Current Ratio

Current asset/current liabilities Net income/average stockholders equity

1,265,700,000/ 1,897,500,000= 0.66 191,000,000/7, 846,500,000= 2.43%

2,379,000,000/3, 068,000,000= 0.77 266,000,000/6,2 60,000,000= 4.24%

Return on equity

Return on assets

Net income/total assets

191,000,000/19 ,461,900,000= 0.98%

266,000,000/21, 476,000,000= 1.23%

Total revenue

It is the total cash received from the sale of the goods It is used to evaluate the efficiency of an investment It indicates the long-term or future position of the business. Earnings per share serve as an indicator of a company's profitability. A ratio used to measure a company's pricing strategy and operating efficiency.

Total sales Cost of goods sold Net income/book value of assets

8,192,900,000/ 4,865,100,000= $1.68 191,000,000/7, 683,000,000= 2.48% 7846.5/19461.9 = 0.403

13378000000/8 541000000= $1.56 266,000,000/2,5 50,000,000= 10.43% 6260/21476= 0.291

Return on investment

Equity ratio

Shareholders funds / Total Assets

Earning per shares

Operating Profit Margin

(Net incomeDividends on preferred stock)/Avg. Outstanding shares EBIT/sales

0.51

0.49

9.43%

7.81%

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DEBT EQUITY RATIO

Debt equity ratio is used to calculate firms leverage

Total liability / shares holder equity

11870.2/7681.3 = 1.54

16499/6070= 2.71

KPI for HR
S.N O KEY PERFORMANCE INDICATOR STRATEGIC OBJECTIVES (PURPOSE OF USING MATRICS)
It is the number of permanent employees who left the company within a reported period It shows the sales ratio of a company in relation to the number of employees they have.

FORMULAS

REPUBLIC SERVICES

WASTE MANAGEME NT

Employee turnover

Profit per employee

No of permanent leavers in the reported period *100/avg.actual no. of permanent employees over the reported period Net income/no. of employees

10* 100/31000=3.2 2%

12*100/ 32600=3.68%

$191,000,000/ 31000=$6161

$266,000,000/ 32600= $8159

Training/development Time required hours by employees to train Tenure Time duration in which employee switch the job

Turnover (annual)

sum of total training hours total # of employees average # of years of service at the organization across all employees # of employees exiting the job during 12 month period average actual # of employees during the same period

13,000,000/ 31000= 419.35 4yrs

18,000,000/ 32600= 552.14 6 yrs.

150/31000= 0.48%

250/32600= 0.76%

Health care costs per employee

The cost associate with the employee

Total cost of health care/total employees

$48,000,000/310 00= $1548.3 750,000/31000 = $24.19

Benefit or program costs per employee

Cost associated with the benefit program

total cost of employee benefit program / total # of employees

Net income/ number of employees

$58,400,000/ 32600 = $1791.4 878,000/3260 0= $26.93

Profit per employee

191,000,000/310 00= 6161.2 750,000/2,025,2 00 = 37

266,000,000/ 32600= 8159

Compensation or benefit revenue ratio

10

Absence rate

It is used to determine the ratio of compensation or benefit revenue Absent rate in a month by employees

compensation or benefit cost revenue

878,000/3,406 ,000= 25.77

# days absent in month (average # of employees during a month x # of workdays)

5/31000 * 6 *100= 0.096%

3/32600 *6*100= 0.055%

http://ycharts.com/companies/RSG/dashboard http://ycharts.com/companies/WM/dashboard http://finance.yahoo.com/q/is?s=wm http://finance.yahoo.com/q/is?s=RSG http://finance.yahoo.com/news/republic-services-inc-earnings-beats-213259564.html http://www.msnbc.msn.com/id/46752258/ns/business-motley_fool/t/why-republic-services-earningsare-outstanding/ http://www.republicservices.com/aboutRepublic.asp http://www.careerbuilder.com/Jobs/Company/C8H8FK73GH86P9QB81H/Republic-Services-Inc/