At Acumen, we take pride in adding value to your business. We firmly believe in accountability, which is embedded in our value system. To drive accountability, metrics, measures or Key Performance Indicators are paramount in our value proposition. We work with our clients to design and implement a blend of lagging and leading performance indicators with specific formulas to cascade at every level in the business. Below are some insightful metrics we utilize at Acumen:

HCROI – Human Capital Return on Investment: The HCROI metric is a measure of the pre-tax dollars generated for every dollar invested in people. The measure shows the value being generated by people in supporting the organization’s goals and subsequently informs the organisation of areas for improvement.

HEVA – Human Economic Value Added: The HEVA metric reflects the net operating profit after tax minus the cost of capital, divided by Full-Time Equivalents (FTEs). This measure is long-term focused on utilising human capital in relation to the organisation’s cost of capital.

HCC – Human Capital Costs: HCC measures the cost of pay, benefits, absence, turnover and contingents. This measure enables an organization to manage both fixed and variable costs associated with human capital.

Contingent Percentage – The human-specific measure illustrates the number of contingent FTEs as a percentage of total FTEs. Variable costs, as opposed to a fixed cost structure, can add value to the business, especially those that are seasonal in nature.

Separation (Loss) Rate – The Loss Rate measures both voluntary and involuntary separations as a percentage of the total headcount. This measure informs the company of key strategies to be designed in relation to improving retention, turnover, and the overall employee engagement index.

Line Efficiency: This metric compares actual good production with theoretical good production achievable during Occupied Time at a specified Nominal Speed.

Capacity Utilization (time): This metric represents the ratio of Occupied Time in relation to the Total Time of a production line. It is a measure of how much of the time a resource is occupied with production or with non-production activity.

Proportional labour per unit production: This refers to the labour required for a production line during a specified production run. Proportional labour is calculated in relation to the expected labour compliment at a specified nominal speed.

Recordable Injury Rate or Lost Time Rate: This metric measures the total number of recordable injuries per million hours worked. While this represents a key lagging indicator, BBS (Behaviour Based Safety) and Near Misses would represent important leading indicators for measurement in creating a safety-centric culture.

First Time Right or First Time Quality (FTR or FTQ): Sometimes used interchangeably with FTQ, FTR in a manufacturing environment aims to achieve a culture of zero defects through measuring finished products within the Quality Monitoring Scheme limit in relation to the total number of finished products.