Create KPI thresholds

Create KPI thresholds that consist of predefined values that serve as benchmarks or limits for evaluating performance against specific objectives.

Before you begin

Role required: sn_slm.manager or sn_slm.admin

About this task

Ensure that you add at least two active thresholds to activate a KPI template. You can add a maximum of five thresholds to a KPI template.

Note:

Thresholds help determine what score the supplier receives in the KPI management tab and in the scorecard. For more information, see Manage supplier KPIs from the supplier record page of the Source-to-Pay Workspace.

Procedure

1. Navigate to All > Supplier Lifecycle Operations > Source-to-Pay Workspace.
2. Select the list icon (), and navigate to Lists > Performance management > KPI Templates.
3. In the Name column, select the link to the KPI template.
4. Select the Thresholds tab and select New.
5. On the form, fill in the fields.

   Table 1. Create New KPI Threshold form

   Field	Description
   Name	Name of the KPI threshold.
   Label	Label for the KPI threshold. Note: The Label field is displayed only for the Qualitative KPI templates.
   Description	Brief description of the KPI threshold.
   Target threshold	Option indicating that the threshold represents the target value for the KPI.
   Active	Option indicating that the threshold is active for use.
   Low Value	Represents the low value in the KPI threshold value range. This field is displayed only for Quantitative KPI templates. This value is included in the threshold range. If left empty, the Low Value defaults to negative infinity.
   High Value	Represents the high value in the KPI threshold value range. This field is displayed only for Quantitative KPI templates. This value is excluded from the threshold range. If left empty, the High Value defaults to positive infinity.
   Normalized value	Indicates a value that has been calculated from its original figure to fit a specific scale for easy comparison with other values. For example, a scale of 1–5.
   Color	The color you select for each threshold is inherited by the Status column (showing highlighted value) in the KPI management tab on the Supplier page. For more information, see Manage supplier KPIs from the supplier record page of the Source-to-Pay Workspace.

6. Select Save.
   Note:

   A KPI is activated only when at least two active thresholds are added to it and one of those thresholds is marked as Target threshold.