DOI: 10.18503/1995-2732-2023-21-1-118-125
Abstract
Having analyzed the issue of the study on various approaches to management of metallurgical enterprises, the authors set an objective: to determine the most efficient management system for the Group of Budget Planning and Current Assets Management of OJSC MMK-METIZ. The budgeting system used at the enterprise was analyzed with the identification of main disadvantages. It was determined that management, using the enterprise budget as the only one criterion for achieving strategic goals, did not provide an assessment of an intangible component of success of the enterprise performance. The authors describe a system of key performance indicators (KPIs), which reflects the transformation of the company’s strategy into a set of interrelated and balanced performance indicators. Developing meaningful key performance indicators that track and clearly visualize performance requires definite planning. Every indicator should correspond to a specific business process and provide timely and accurate information to assess the progress towards achieving goals. A system of key performance indicators has been developed for the Group of Budget Planning and Current Assets Management of OJSC MMK-METIZ. The authors determined main business processes of the Group of Budget Planning and Current Assets Management of OJSC MMK-METIZ and its performance indicators. The implementation of the KPI system will provide the company with the opportunity to determine strategic, financial and operations goals of the company based on clear indicators of efficiency of business processes, contributing to optimizing effort of all the departments. Monitoring of the company’s activities will be reduced not only to the analysis of deviations of business indicators from planned figures, but also to the assessment of the current results of achieving strategic goals. The KPI system will motivate the staff to improve efficiency of their activities in general.
Keywords
system, management, strategy, key performance indicators, effectiveness indicators, production performance
For citation
Ponomareva O.S., Maiorova T.V., Priymak V.A. Development and Implementation of the KPI System at Metallurgical Enterprises. Vestnik Magnitogorskogo Gosudarstvennogo Tekhnicheskogo Universiteta im. G.I. Nosova [Vestnik of Nosov Magnitogorsk State Technical University]. 2023, vol. 21, no. 1, pp. 118-125. https://doi.org/10.18503/1995-2732-2023-21-1-118-125
1. Fedorov I.V., Kuznetsova N.V. Seeking for the most efficient solutions to organizational changes at metallurgical enterprises. A modern management model: problems and prospects. Proceedings of the 3rd All-Russian Scientific and Practical Conference. Magnitogorsk: Nosov Magnitogorsk State Technical University; 2019;77-82. (In Russ.)
2. Kolokoltsev V.M., Kozlova T.V., Zambrzhitskaya E.S., Vdovin K.N. The internal control system applied in ferrous metallurgy corporations: problems and prospects of development. Chernye metally [Ferrous Metals]. 2019;(12(1056)):16-21. (In Russ.)
3. Ponomareva O.S., Dudenkov S.V. Budgeting of management decisions. A modern management model: problems and prospects. Proceedings of the 3rd All-Russian Scientific and Practical Conference. Magnitogorsk: Nosov Magnitogorsk State Technical University; 2019;108-111. (In Russ.)
4. Balynskaya N.R., Koptyakova S.V., Maiorova T.V. Personnel certification as a tool to increase efficiency of using labor potential at manufacturing enterprises. Voprosy upravleniya [Management Issues]. 2019;(6):209-222. (In Russ.)
5. Litovskaya Yu.V., Makotkina D.V. Cost management of a metallurgical enterprise using the budgeting method. Proceedings of the 3rd All-Russian Scientific and Practical Conference. Magnitogorsk: Nosov Magnitogorsk State Technical University; 2019;64-67. (In Russ.)
6. Ponomareva O.S., Mayorova T.V., Makhotkina E.S., Shubina M.V. Improving the cost management system at an industrial enterprise. Ekonomika i predprin-imatelstvo [Economics and Entrepreneurship]. 2022;(1(138)):674-677. (In Russ.)
7. Panov M.M. Otsenka deyatelnosti i sistema uprav-leniya kompaniey na osnove KPI [Performance assessment and the company management system based on KPI]. Moscow: Infra-M; 2013. (In Russ.)
8. Paul R. Niven. Sbalansirovannaya sistema pokazateley: Shag za shagom: maksimalnoe povyshenie effektivnosti i zakreplenie poluchennykh rezultatov [Balanced Scorecard step-by-step: maximizing performance and maintaining results]. Dnepropetrovsk: Balance Business Books; 2004. 328 p. (In Russ.)
9. Balashov V.N. KPI as a tool of effective and efficient activities. Vittevskie chteniya [Witte Readings]. 2014;(1):274-276. (In Russ.)
10. Ponomareva O.S., Simakov D.V., Terenteva Yu.G. Development trends and the structure of the Russian metalware market. Perspektivy nauki [Prospects of Science]. 2016;(12(87)):23-26. (In Russ.)
11. Chukin V.V., Artyukhin V.I., Rubin G.Sh. The problem of improving the quality of fasteners. Vestnik Magnitogorskogo gosudarstvennogo tekhnicheskogo universiteta im. G.I. Nosova [Vestnik of Nosov Magnitogorsk State Technical University]. 2007;(4(20)):99-102. (In Russ.)
12. Simakov D.B., Portnova V.A. Management of an industrial enterprise by applying the KPI system. Modern Management: Theory and Practice: Proceedings of the All-Russian Scientific and Practical Conference. Magnitogorsk: Nosov Magnitogorsk State Technical University; 2016;51-54. (In Russ.)