- Email: [email protected]
Measuring innovation using key performance indicators
Available online at www.sciencedirect.com Available online at www.sciencedirect.com
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Procedia Manufacturing 00 (2018) 913–918 Available online atatwww.sciencedirect.com Available www.sciencedirect.com Procedia online Manufacturing 00 (2018) 913–918
ScienceDirect ScienceDirect
www.elsevier.com/locate/procedia www.elsevier.com/locate/procedia
Procedia Manufacturing 22 (2018) 906–911 Procedia Manufacturing 00 (2017) 000–000 www.elsevier.com/locate/procedia
11th International Conference Interdisciplinarity in Engineering, INTER-ENG 2017, 5-6 October 11th International Conference Interdisciplinarity in Engineering, 2017, Tirgu-Mures, Romania INTER-ENG 2017, 5-6 October 2017, Tirgu-Mures, Romania
Measuring innovation using key performance indicators
Measuring innovation using key performance indicators Manufacturing Engineering Society International Conference 2017, MESIC 2017, 28-30 June a, 2017, Vigo (Pontevedra), Spain Geanina Silviana Banu * Geanina Silviana Banua,* P
P0F
P
P0F
Costing models for capacity optimization in Industry 4.0: Trade-off between used capacity and operational efficiency a
Process Innovation Nucleus S.R.L., 289 Calea Bucuresti Street, Mihailesti, Giurgiu, 085200, Romania a Process Innovation Nucleus S.R.L., 289 Calea Bucuresti Street, Mihailesti, Giurgiu, 085200, Romania P
P
P
P
Abstract Abstract A. Santanaa, P. Afonsoa,*, A. Zaninb, R. Wernkeb When undertaking innovation, developing Key Performance Indicators/KPIs represents an important tool for insuring that all When undertaking innovation, developing Key Performance Indicators/KPIs represents an important tool for insuring that but all University of Minho, 4800-058 Guimarães, Portugal process objectives are met. To this end, aa specific methodology is required in order to identify not only meaningful indicators, b process objectives met. To Such this end, specific methodology is required order to identify not only to meaningful but Unochapecó, 89809-000 Chapecó, SC, Brazil also other supportare elements. toola allows innovative SMEs (Small inand Medium Enterprises) enhance indicators, their decision also other support elements. Such tool allows innovative SMEsand (Small and Medium Enterprises) to enhance their decision making by accurately measuring innovation process performance by optimizing their process. Present paper aims to establish making accurately measuring innovation process KPIs performance optimizing their process. Present to establish the mainbyrequirements for developing meaningful in orderand to by effectively measure innovation. Aspaper such,aims a case study is the main requirements for importance developingofmeaningful in order to effectively measure As such, a caseThe study is presented emphasizing the correlatingKPIs specific objectives, related results and innovation. key performance indicators. need Abstract presented emphasizing the importance correlating objectives, relatedisresults and key performance need for establishing and using a commonoflanguage forspecific the innovation process also emphasized. Standardindicators. language The Business for establishing andNotation using a(BPMN) commonwas language fortothe innovation process is also emphasized. Standard language Business Process Model and employed enhance process communication between users. Under concept of "Industry 4.0",employed production processes will be pushed between to be increasingly interconnected, Process Model and Notation (BPMN) was to enhance process communication users. © 2018 the The Authors. Published by Elsevier B.V. information based on a real time basis and, necessarily, much more efficient. In this context, capacity © 2018 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the 11th International Conference Interdisciplinarity optimization in © 2018 The Authors. Published by Elsevier B.V. committee of the 11th International Conference Interdisciplinarity in Peer-review responsibility thecapacity scientific goes beyondunder the traditional aimofof maximization, contributing also for organization’s profitability and value. Engineering. Peer-review under responsibility of the scientific committee of the 11th International Conference Interdisciplinarity in Engineering. Engineering. Indeed, lean management and continuous improvement approaches suggest capacity optimization instead of
Keywords: Key Performance Indicators; standard language. maximization. The study of capacity optimization and costing models is an important research topic that deserves Keywords: Key Performance Indicators; standard language. contributions from both the practical and theoretical perspectives. This paper presents and discusses a mathematical model for capacity management based on different costing models (ABC and TDABC). A generic model has been 1. Introduction developed and it was used to analyze idle capacity and to design strategies towards the maximization of organization’s 1. Introduction value. The trade-off capacity maximization vs operational efficiency is highlighted and it is shown that capacity When undertaking innovation, enterprise should perform an in-depth assay of the main characteristics of the optimization might hide operationalaninefficiency. When undertaking innovation, an enterprise should perform an in-depth assay of the main characteristics of the innovation process in order to properly © 2017 The Authors. Published by Elsevier B.V. understand the requirements of successful innovation. The main innovation process in order to properly understand theas requirements of successful innovation. The main characteristics of the innovation process cancommittee be summarized follows [1]:Engineering Peer-review under responsibility of the scientific of the Manufacturing Society International Conference characteristics of the innovation process can be summarized as follows [1]: 2017. Keywords: Cost Models; ABC; TDABC; Capacity Management; Idle Capacity; Operational Efficiency
1. Introduction
* Corresponding author. Tel.: +40-724-384-111. * Corresponding Tel.: +40-724-384-111. [email protected] E-mail address:author. [email protected]; The cost of idle capacity is a [email protected] information for companies and their management of extreme importance E-mail address: [email protected];
in modern©production systems. In general, it isB.V. defined as unused capacity or production potential and can be measured 2351-9789 2018 The Authors. Published by Elsevier 2351-9789 2018responsibility The Authors. Published by Elsevier B.V.hours Peer-review of the scientific committee of the 11th International Conference in Engineering. in several©under ways: tons of production, available of manufacturing, etc. Interdisciplinarity The management of the idle capacity Peer-review underTel.: responsibility the761; scientific committee the 11th International Conference Interdisciplinarity in Engineering. * Paulo Afonso. +351 253of 510 fax: +351 253 604of741 E-mail address: [email protected]
2351-9789 © 2017 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the Manufacturing Engineering Society International Conference 2017. 2351-9789 © 2018 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the 11th International Conference Interdisciplinarity in Engineering. 10.1016/j.promfg.2018.03.128
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• the innovation process comprises of numerous events, various key people, a common context and a defined timeframe. • the innovation process is initiated as a result of planning and decision making, but it can also be triggered by shocks sent by the market manifesting its needs. • the innovation process should never be viewed as a linear sequential flow of activities. • failure happens frequently and generates either discontinuance when innovation is rejected or opportunity when innovation is “reinvented”. • the innovation process should be opened both to the innovators and the adopters of the innovation. • an efficient innovation process cannot guarantee the success of innovation but can influence the innovation success rate. Innovation requires proper planning of activities, realistic objectives, constant monitoring of unfolding activities and measuring of results [2], [3]. Considering the intricacy of the innovation process as underlined by the above characteristics, the aim of the paper is to emphasize the importance of developing meaningful KPIs in order to measure innovation. Various methodologies have been created and employed by enterprises for the purpose of developing KPIs. Nevertheless, a generic methodology should be researched and identified. Such methodology should be easily employed for the purpose of ensuring that process objectives are met. To this end, the research problem refers to identifying a generic methodology for developing meaningful KPIs. The results of the research are applied in the case of an unfolding innovation process. 2. Methodology A secondary research was conducted in order to identify a generally accepted methodology for developing KPIs. As a result, a set of KPIs has been established to support the implementation of a research and innovation project, referred to as NANOAPPARATUS, undertaken by an innovative SME (Small and Medium-sized Enterprises) from Romania. Moreover, Business Process Modeling was employed in order to facilitate the comprehensive understanding of the innovation process and to efficiently implement and communicate it. 3. Results/main findings and contribution Establishing a correlation between objectives, expected results and KPIs represents an important strategy tool when planning the efficient management of a business process, especially in the case of the innovation process representing a high-risk process. Developing KPIs should be undertaken as a systematic process based on revising and in-depth analysis. This applies to research and innovation processes regardless of the nature of research. Scientific and technological advancement requires the guidance of high performance innovation management. This is also the case of the publicly funded NANOAPPARATUS research and innovation project implemented by Process Innovation Nucleus S.R.L., the aforementioned innovative SME from Romania. With input from the innovation consultant having the role of supporting the efficient implementation of NANOAPPARATUS innovation process, the following methodology for developing KPIs was identified as being comprehensive and largely employed by enterprises, having the main steps bellow [4], [5], [6]: • • • •
Define and understand project objectives; Define and describe project results; Design and describe project activities; Develop and describe KPIs.
The referred methodology for developing KPIs was adapted to meet the specific of NANOAPPARATUS project and modeled (Fig. 1) using the standard modeling language Business Process Model Notation 2.0. Furthermore, Fig. 1 depicts the methodology elements performed before and after starting the implementation phase of
Geanina Silviana Banu / Procedia Manufacturing 22 (2018) 906–911 Geanina Silviana Banu / Procedia Manufacturing 00 (2018) 913–918
908
915
NANOAPPARATUS, elements which were analyzed and/or defined and systematized according to the referred methodology.
Fig. 1. Methodology for developing KPIs to measure the NANOAPPARATUS project results. Adapted from [4]. [5], [6].
In order to develop the NANOAPPARATUS project KPIs, a comprehensive correlation between project objectives, activities and results was established allowing for identifying measures to support achieving the objectives. The following requirements were considered when developing the NANOAPPARATUS project KPIs: • • • • • •
The KPIs should comply with the particular characteristics of NANOAPPARATUS innovation process; The KPIs should rely on clearly identified and rated measures; The KPIs should support implementing project activities and achieving project objectives; The KPIs should reflect only available data; The KPIs should allow for reevaluation and further improvement; The KPIs should impact also the results of the organization’s activities and not only those of project activities.
Table 1 presents three examples of KPIs developed to measure the results of the experimental development phase of NANOAPPARATUS. Table 1. Key performance indicators/ KPIs description No.
Objectives
Results
KPI
Measure
1.
Designing a prototype for producing nanopowders at industrial scale (TRL 9)
Identifying the chemical composition of input materials using specific analysis techniques – identifying at least five types of input materials to be processed into
Increasing performance of the apparatus for producing nanopowder (i.e. the product) by developing input chemical composite materials to ensure low resource
Minimum 3 criteria for identifying the chemical composite materials (i.e. comprising of the input material to be processed into nanopowders and the selected catalysts), such as:
Developing high quality nanopowders for automotive industry and other industries
I.
Identify chemical composite materials able to determine the reduction of the melting point.
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Geanina Silviana Banu / Procedia Manufacturing 22 (2018) 906–911 Geanina Silviana Banu / Procedia Manufacturing 00 (2018) 913–918
2.
3.
Implementing NANNOAPPARATUS project with the help of an interdisciplinary team, whose members come both from private and public organizations
nanopowders
Designing a prototype for producing nanopowders at industrial scale (TRL 9)
Procurement of the input materials to be processed into nanopowders and the necessary catalysts.
Developing high quality nanopowders for automotive industry and other industries
Procurement of all materials, components and subcomponents of the prototype for producing nanopowders
Performing the successful market uptake of the new process for producing nanopowders in 24 months from signing the financing agreement Developing high quality nanopowders for automotive industry and other industries Obtaining a patent for method for producing nanopwders; Direct and indirect exploitation of method for producing nanopowders once the European patent is granted; filing for a new patent application as a result of experimental development
Identifying and preparing at least six catalysts in order to establish the chemical composite materials to process for producing nanopowders.
Granted European patent for method for producing nanopowders; Patent validation in at least three jurisdictions in Europe (e.g. Germany and Great Britain, including Romania); New patent application filed for apparatus for producing nanopowders which is to be developed as a result of the project. New “Knowledge management system” implemented within the organization as a result of the project. Technical specifications elaborated for the developed
consumption and high value added.
Increase the correlation between actual financial resources needed, projected budget and experimental development expected results
Increase innovation success rate by identifying as many external channels as possible for accessing expertise in critical areas of the project
909
II.
Identify chemical composite materials based on their triboelectric properties.
III.
Select the input materials to be processed into nanopowders with high value added.
Implementing an evaluation methodology for solutions proposed to improve scientific results during the experimental development stage, comprising of minimum 3 criteria: I.
The projected budget should not be affected with more than 5% when making changes.
II.
The proposed technical solution for designing the prototype should be altered only of strongly and quantifiably justified.
III.
The basic scientific elements of the technical solution should suffer no significant change.
The use of external channels of expertise, such as external suppliers with expertise in areas of the project. The organization’s capacity to identify external expertise is measured by: I.
The number of minimum requirements for selecting the innovation consultants. The following minimum 3 criteria are recommended: -
Experience in the field of innovation (experienced personnel and similar experience);
-
Suppliers ‘capacity to develop innovations (number of successfully developed innovative ideas within last five years – minimum 1);
-
The
price
–
910
Geanina Silviana Banu / Procedia Manufacturing 22 (2018) 906–911 Geanina Silviana Banu / Procedia Manufacturing 00 (2018) 913–918
nanopowders. Evaluated environmental impact of the fully developed technology for producing nanopowders. Certified prototype for producing nanopowders
Increase innovation success rate by increasing team’s capacity to document the innovation process
performance ratio. Team’s capacity to document the output data of the experimental development increases the input of correct and efficient data for the innovation activities to follow. Said capacity is measured by: -
The number of team members documenting in a systematic manner the output data of the experimental development minimum 2 is recommended.
Fig. 2. Innovation activities to support R&D – sub-process of NANOAPPARATUS innovation process.
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As NANOAPPARATUS will unfold and generate measurable values, thresholds can also be defined. Considering that the case study NANOAPPARATUS is a new process, measurable values will continue to change, thus creating comparators for the developed KPIs. In order to define thresholds and to meet process targets, it is very important to register all values and to keep record of all changes taking place as innovation process unfolds. When implementing the aforementioned methodology for developing KPIs, the need arose for using a common language of the NANOAPPARATUS innovation process. As such, the standard language Business Process Model and Notation (BPMN) was employed [7]. It allowed for integrating all process data, human and financial resources and basic time elements to be unitarily represented, processed and communicated to process users and stakeholders. Business Process Modeling with the help of BPMN is possible by employing specific modeling instruments. For the purpose of this paper Bizagi Modeler freeware instrument was employed. Other modeling programs are possible for same purpose. Fig. 2 depicts a sub-process of the NANOAPPARATUS innovation process comprising the innovation activities to support R&D. The referred sub-process is shown as an example of how to model a flow of activities into a dynamic sequence allowing for continuous process evaluation and optimization. The entire sequence of activities specific to NANOAPPARATUS innovation process was modeled using BPMN and various “what if” scenarios were created and compared based on criteria pertaining time and resources. As such, process bottlenecks were identified allowing focusing efforts on developing process KPIs. 4. Conclusions A generic methodology for developing meaningful KPIs was identified. Furthermore, said methodology is linked with the use of Business Process Modeling in order to ensure that a process can be handled as standard process by all its users. Present research supports the use of Business Process Modeling for the management and automation of business processes, allowing for real time process handling and quick access to all process data. The methodology for developing KPIs is applied in the case of an unfolding innovation process with the purpose of optimizing it by assigning measures to systematically achieve process objectives. Further focusing on step by step measuring the process performance level should allow for real time reevaluation of ongoing innovation activities and related results. Acknowledgements This work is disseminating results of the project “Prototype for verifying the practical potential of an innovative nanotechnology and production line /Prototip pentru validare nanotehnologie inovatoare si linie de productie”, having SMIS 104269 and Financial Agreement 71/08.09.2016. The project is co-funded by the European Regional Development Fund through the Competitiveness Operational Programme 2014-2020. References [1] B., McPhail, B., Integrated Research Sub-Project (IRSP)I-The Role of Technology Companies in Promoting Surveillance Internationally. The new transparency surveillance and social sorting, 2009 (Retrieved from http://www.sscqueens.org). [2] H.W., Chesbrough, Open Innovation. The New Imperative for creating and profiting from technology, Harvard Business School Press, ISBN 1-57851-837-7, Boston, 2003. [3] European Commission, Directorate-General for Research and Innovation, Open Innovation Open Science Open to the World – a vision for Europe, ISBN: 978-92-79-57346-0, DOI: 10.2777/061652, 2016. [4] Balanced Scorecard Institute, 2016 (Retrieved from http://balancedscorecard.org,). [5] R., Roy, R. et al. A Framework to Create Performance Indicators in Knowledge Management, vol. 34, pp.18-1–18-8, CEUR-WS, ISSN: 1613-0073, 2000. [6] Intrafocus , KEY PERFORMANCE INDICATORS Developing Meaningful KPIs, 2014 (Retrieved from https://www.intrafocus.com. [7] OMG, Business Process Model and Notation (BPMN) Version 2.0, OMG Document Number: formal/2011-01-04, 20111 (Retrieved 2017, from [http://www.omg.org/spec/BPMN/2.0]).
ScienceDirect ScienceDirect
Procedia Manufacturing 00 (2018) 913–918 Available online atatwww.sciencedirect.com Available www.sciencedirect.com Procedia online Manufacturing 00 (2018) 913–918
ScienceDirect ScienceDirect
www.elsevier.com/locate/procedia www.elsevier.com/locate/procedia
Procedia Manufacturing 22 (2018) 906–911 Procedia Manufacturing 00 (2017) 000–000 www.elsevier.com/locate/procedia
11th International Conference Interdisciplinarity in Engineering, INTER-ENG 2017, 5-6 October 11th International Conference Interdisciplinarity in Engineering, 2017, Tirgu-Mures, Romania INTER-ENG 2017, 5-6 October 2017, Tirgu-Mures, Romania
Measuring innovation using key performance indicators
Measuring innovation using key performance indicators Manufacturing Engineering Society International Conference 2017, MESIC 2017, 28-30 June a, 2017, Vigo (Pontevedra), Spain Geanina Silviana Banu * Geanina Silviana Banua,* P
P0F
P
P0F
Costing models for capacity optimization in Industry 4.0: Trade-off between used capacity and operational efficiency a
Process Innovation Nucleus S.R.L., 289 Calea Bucuresti Street, Mihailesti, Giurgiu, 085200, Romania a Process Innovation Nucleus S.R.L., 289 Calea Bucuresti Street, Mihailesti, Giurgiu, 085200, Romania P
P
P
P
Abstract Abstract A. Santanaa, P. Afonsoa,*, A. Zaninb, R. Wernkeb When undertaking innovation, developing Key Performance Indicators/KPIs represents an important tool for insuring that all When undertaking innovation, developing Key Performance Indicators/KPIs represents an important tool for insuring that but all University of Minho, 4800-058 Guimarães, Portugal process objectives are met. To this end, aa specific methodology is required in order to identify not only meaningful indicators, b process objectives met. To Such this end, specific methodology is required order to identify not only to meaningful but Unochapecó, 89809-000 Chapecó, SC, Brazil also other supportare elements. toola allows innovative SMEs (Small inand Medium Enterprises) enhance indicators, their decision also other support elements. Such tool allows innovative SMEsand (Small and Medium Enterprises) to enhance their decision making by accurately measuring innovation process performance by optimizing their process. Present paper aims to establish making accurately measuring innovation process KPIs performance optimizing their process. Present to establish the mainbyrequirements for developing meaningful in orderand to by effectively measure innovation. Aspaper such,aims a case study is the main requirements for importance developingofmeaningful in order to effectively measure As such, a caseThe study is presented emphasizing the correlatingKPIs specific objectives, related results and innovation. key performance indicators. need Abstract presented emphasizing the importance correlating objectives, relatedisresults and key performance need for establishing and using a commonoflanguage forspecific the innovation process also emphasized. Standardindicators. language The Business for establishing andNotation using a(BPMN) commonwas language fortothe innovation process is also emphasized. Standard language Business Process Model and employed enhance process communication between users. Under concept of "Industry 4.0",employed production processes will be pushed between to be increasingly interconnected, Process Model and Notation (BPMN) was to enhance process communication users. © 2018 the The Authors. Published by Elsevier B.V. information based on a real time basis and, necessarily, much more efficient. In this context, capacity © 2018 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the 11th International Conference Interdisciplinarity optimization in © 2018 The Authors. Published by Elsevier B.V. committee of the 11th International Conference Interdisciplinarity in Peer-review responsibility thecapacity scientific goes beyondunder the traditional aimofof maximization, contributing also for organization’s profitability and value. Engineering. Peer-review under responsibility of the scientific committee of the 11th International Conference Interdisciplinarity in Engineering. Engineering. Indeed, lean management and continuous improvement approaches suggest capacity optimization instead of
Keywords: Key Performance Indicators; standard language. maximization. The study of capacity optimization and costing models is an important research topic that deserves Keywords: Key Performance Indicators; standard language. contributions from both the practical and theoretical perspectives. This paper presents and discusses a mathematical model for capacity management based on different costing models (ABC and TDABC). A generic model has been 1. Introduction developed and it was used to analyze idle capacity and to design strategies towards the maximization of organization’s 1. Introduction value. The trade-off capacity maximization vs operational efficiency is highlighted and it is shown that capacity When undertaking innovation, enterprise should perform an in-depth assay of the main characteristics of the optimization might hide operationalaninefficiency. When undertaking innovation, an enterprise should perform an in-depth assay of the main characteristics of the innovation process in order to properly © 2017 The Authors. Published by Elsevier B.V. understand the requirements of successful innovation. The main innovation process in order to properly understand theas requirements of successful innovation. The main characteristics of the innovation process cancommittee be summarized follows [1]:Engineering Peer-review under responsibility of the scientific of the Manufacturing Society International Conference characteristics of the innovation process can be summarized as follows [1]: 2017. Keywords: Cost Models; ABC; TDABC; Capacity Management; Idle Capacity; Operational Efficiency
1. Introduction
* Corresponding author. Tel.: +40-724-384-111. * Corresponding Tel.: +40-724-384-111. [email protected] E-mail address:author. [email protected]; The cost of idle capacity is a [email protected] information for companies and their management of extreme importance E-mail address: [email protected];
in modern©production systems. In general, it isB.V. defined as unused capacity or production potential and can be measured 2351-9789 2018 The Authors. Published by Elsevier 2351-9789 2018responsibility The Authors. Published by Elsevier B.V.hours Peer-review of the scientific committee of the 11th International Conference in Engineering. in several©under ways: tons of production, available of manufacturing, etc. Interdisciplinarity The management of the idle capacity Peer-review underTel.: responsibility the761; scientific committee the 11th International Conference Interdisciplinarity in Engineering. * Paulo Afonso. +351 253of 510 fax: +351 253 604of741 E-mail address: [email protected]
2351-9789 © 2017 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the Manufacturing Engineering Society International Conference 2017. 2351-9789 © 2018 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the 11th International Conference Interdisciplinarity in Engineering. 10.1016/j.promfg.2018.03.128
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• the innovation process comprises of numerous events, various key people, a common context and a defined timeframe. • the innovation process is initiated as a result of planning and decision making, but it can also be triggered by shocks sent by the market manifesting its needs. • the innovation process should never be viewed as a linear sequential flow of activities. • failure happens frequently and generates either discontinuance when innovation is rejected or opportunity when innovation is “reinvented”. • the innovation process should be opened both to the innovators and the adopters of the innovation. • an efficient innovation process cannot guarantee the success of innovation but can influence the innovation success rate. Innovation requires proper planning of activities, realistic objectives, constant monitoring of unfolding activities and measuring of results [2], [3]. Considering the intricacy of the innovation process as underlined by the above characteristics, the aim of the paper is to emphasize the importance of developing meaningful KPIs in order to measure innovation. Various methodologies have been created and employed by enterprises for the purpose of developing KPIs. Nevertheless, a generic methodology should be researched and identified. Such methodology should be easily employed for the purpose of ensuring that process objectives are met. To this end, the research problem refers to identifying a generic methodology for developing meaningful KPIs. The results of the research are applied in the case of an unfolding innovation process. 2. Methodology A secondary research was conducted in order to identify a generally accepted methodology for developing KPIs. As a result, a set of KPIs has been established to support the implementation of a research and innovation project, referred to as NANOAPPARATUS, undertaken by an innovative SME (Small and Medium-sized Enterprises) from Romania. Moreover, Business Process Modeling was employed in order to facilitate the comprehensive understanding of the innovation process and to efficiently implement and communicate it. 3. Results/main findings and contribution Establishing a correlation between objectives, expected results and KPIs represents an important strategy tool when planning the efficient management of a business process, especially in the case of the innovation process representing a high-risk process. Developing KPIs should be undertaken as a systematic process based on revising and in-depth analysis. This applies to research and innovation processes regardless of the nature of research. Scientific and technological advancement requires the guidance of high performance innovation management. This is also the case of the publicly funded NANOAPPARATUS research and innovation project implemented by Process Innovation Nucleus S.R.L., the aforementioned innovative SME from Romania. With input from the innovation consultant having the role of supporting the efficient implementation of NANOAPPARATUS innovation process, the following methodology for developing KPIs was identified as being comprehensive and largely employed by enterprises, having the main steps bellow [4], [5], [6]: • • • •
Define and understand project objectives; Define and describe project results; Design and describe project activities; Develop and describe KPIs.
The referred methodology for developing KPIs was adapted to meet the specific of NANOAPPARATUS project and modeled (Fig. 1) using the standard modeling language Business Process Model Notation 2.0. Furthermore, Fig. 1 depicts the methodology elements performed before and after starting the implementation phase of
Geanina Silviana Banu / Procedia Manufacturing 22 (2018) 906–911 Geanina Silviana Banu / Procedia Manufacturing 00 (2018) 913–918
908
915
NANOAPPARATUS, elements which were analyzed and/or defined and systematized according to the referred methodology.
Fig. 1. Methodology for developing KPIs to measure the NANOAPPARATUS project results. Adapted from [4]. [5], [6].
In order to develop the NANOAPPARATUS project KPIs, a comprehensive correlation between project objectives, activities and results was established allowing for identifying measures to support achieving the objectives. The following requirements were considered when developing the NANOAPPARATUS project KPIs: • • • • • •
The KPIs should comply with the particular characteristics of NANOAPPARATUS innovation process; The KPIs should rely on clearly identified and rated measures; The KPIs should support implementing project activities and achieving project objectives; The KPIs should reflect only available data; The KPIs should allow for reevaluation and further improvement; The KPIs should impact also the results of the organization’s activities and not only those of project activities.
Table 1 presents three examples of KPIs developed to measure the results of the experimental development phase of NANOAPPARATUS. Table 1. Key performance indicators/ KPIs description No.
Objectives
Results
KPI
Measure
1.
Designing a prototype for producing nanopowders at industrial scale (TRL 9)
Identifying the chemical composition of input materials using specific analysis techniques – identifying at least five types of input materials to be processed into
Increasing performance of the apparatus for producing nanopowder (i.e. the product) by developing input chemical composite materials to ensure low resource
Minimum 3 criteria for identifying the chemical composite materials (i.e. comprising of the input material to be processed into nanopowders and the selected catalysts), such as:
Developing high quality nanopowders for automotive industry and other industries
I.
Identify chemical composite materials able to determine the reduction of the melting point.
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Geanina Silviana Banu / Procedia Manufacturing 22 (2018) 906–911 Geanina Silviana Banu / Procedia Manufacturing 00 (2018) 913–918
2.
3.
Implementing NANNOAPPARATUS project with the help of an interdisciplinary team, whose members come both from private and public organizations
nanopowders
Designing a prototype for producing nanopowders at industrial scale (TRL 9)
Procurement of the input materials to be processed into nanopowders and the necessary catalysts.
Developing high quality nanopowders for automotive industry and other industries
Procurement of all materials, components and subcomponents of the prototype for producing nanopowders
Performing the successful market uptake of the new process for producing nanopowders in 24 months from signing the financing agreement Developing high quality nanopowders for automotive industry and other industries Obtaining a patent for method for producing nanopwders; Direct and indirect exploitation of method for producing nanopowders once the European patent is granted; filing for a new patent application as a result of experimental development
Identifying and preparing at least six catalysts in order to establish the chemical composite materials to process for producing nanopowders.
Granted European patent for method for producing nanopowders; Patent validation in at least three jurisdictions in Europe (e.g. Germany and Great Britain, including Romania); New patent application filed for apparatus for producing nanopowders which is to be developed as a result of the project. New “Knowledge management system” implemented within the organization as a result of the project. Technical specifications elaborated for the developed
consumption and high value added.
Increase the correlation between actual financial resources needed, projected budget and experimental development expected results
Increase innovation success rate by identifying as many external channels as possible for accessing expertise in critical areas of the project
909
II.
Identify chemical composite materials based on their triboelectric properties.
III.
Select the input materials to be processed into nanopowders with high value added.
Implementing an evaluation methodology for solutions proposed to improve scientific results during the experimental development stage, comprising of minimum 3 criteria: I.
The projected budget should not be affected with more than 5% when making changes.
II.
The proposed technical solution for designing the prototype should be altered only of strongly and quantifiably justified.
III.
The basic scientific elements of the technical solution should suffer no significant change.
The use of external channels of expertise, such as external suppliers with expertise in areas of the project. The organization’s capacity to identify external expertise is measured by: I.
The number of minimum requirements for selecting the innovation consultants. The following minimum 3 criteria are recommended: -
Experience in the field of innovation (experienced personnel and similar experience);
-
Suppliers ‘capacity to develop innovations (number of successfully developed innovative ideas within last five years – minimum 1);
-
The
price
–
910
Geanina Silviana Banu / Procedia Manufacturing 22 (2018) 906–911 Geanina Silviana Banu / Procedia Manufacturing 00 (2018) 913–918
nanopowders. Evaluated environmental impact of the fully developed technology for producing nanopowders. Certified prototype for producing nanopowders
Increase innovation success rate by increasing team’s capacity to document the innovation process
performance ratio. Team’s capacity to document the output data of the experimental development increases the input of correct and efficient data for the innovation activities to follow. Said capacity is measured by: -
The number of team members documenting in a systematic manner the output data of the experimental development minimum 2 is recommended.
Fig. 2. Innovation activities to support R&D – sub-process of NANOAPPARATUS innovation process.
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As NANOAPPARATUS will unfold and generate measurable values, thresholds can also be defined. Considering that the case study NANOAPPARATUS is a new process, measurable values will continue to change, thus creating comparators for the developed KPIs. In order to define thresholds and to meet process targets, it is very important to register all values and to keep record of all changes taking place as innovation process unfolds. When implementing the aforementioned methodology for developing KPIs, the need arose for using a common language of the NANOAPPARATUS innovation process. As such, the standard language Business Process Model and Notation (BPMN) was employed [7]. It allowed for integrating all process data, human and financial resources and basic time elements to be unitarily represented, processed and communicated to process users and stakeholders. Business Process Modeling with the help of BPMN is possible by employing specific modeling instruments. For the purpose of this paper Bizagi Modeler freeware instrument was employed. Other modeling programs are possible for same purpose. Fig. 2 depicts a sub-process of the NANOAPPARATUS innovation process comprising the innovation activities to support R&D. The referred sub-process is shown as an example of how to model a flow of activities into a dynamic sequence allowing for continuous process evaluation and optimization. The entire sequence of activities specific to NANOAPPARATUS innovation process was modeled using BPMN and various “what if” scenarios were created and compared based on criteria pertaining time and resources. As such, process bottlenecks were identified allowing focusing efforts on developing process KPIs. 4. Conclusions A generic methodology for developing meaningful KPIs was identified. Furthermore, said methodology is linked with the use of Business Process Modeling in order to ensure that a process can be handled as standard process by all its users. Present research supports the use of Business Process Modeling for the management and automation of business processes, allowing for real time process handling and quick access to all process data. The methodology for developing KPIs is applied in the case of an unfolding innovation process with the purpose of optimizing it by assigning measures to systematically achieve process objectives. Further focusing on step by step measuring the process performance level should allow for real time reevaluation of ongoing innovation activities and related results. Acknowledgements This work is disseminating results of the project “Prototype for verifying the practical potential of an innovative nanotechnology and production line /Prototip pentru validare nanotehnologie inovatoare si linie de productie”, having SMIS 104269 and Financial Agreement 71/08.09.2016. The project is co-funded by the European Regional Development Fund through the Competitiveness Operational Programme 2014-2020. References [1] B., McPhail, B., Integrated Research Sub-Project (IRSP)I-The Role of Technology Companies in Promoting Surveillance Internationally. The new transparency surveillance and social sorting, 2009 (Retrieved from http://www.sscqueens.org). [2] H.W., Chesbrough, Open Innovation. The New Imperative for creating and profiting from technology, Harvard Business School Press, ISBN 1-57851-837-7, Boston, 2003. [3] European Commission, Directorate-General for Research and Innovation, Open Innovation Open Science Open to the World – a vision for Europe, ISBN: 978-92-79-57346-0, DOI: 10.2777/061652, 2016. [4] Balanced Scorecard Institute, 2016 (Retrieved from http://balancedscorecard.org,). [5] R., Roy, R. et al. A Framework to Create Performance Indicators in Knowledge Management, vol. 34, pp.18-1–18-8, CEUR-WS, ISSN: 1613-0073, 2000. [6] Intrafocus , KEY PERFORMANCE INDICATORS Developing Meaningful KPIs, 2014 (Retrieved from https://www.intrafocus.com. [7] OMG, Business Process Model and Notation (BPMN) Version 2.0, OMG Document Number: formal/2011-01-04, 20111 (Retrieved 2017, from [http://www.omg.org/spec/BPMN/2.0]).