Reference no: EM133069047
The RRR Group (RRR) provides roof repair services to individual customers on a nationwide basis. RRR operates a number of regional divisions, each of which offers similar services. Table A shows actual results for Alpha division for 2019 and 2020, together with data representing an average of a number of similar competitor company divisions.
As an incentive to support the strategic goals of RRR, a set of key performance indicators (KPIs) will be introduced in 2021 and used on the basis of the data in Table B. Divisional staff will be paid a bonus as a percentage of salary based on the overall weighted percentage score deduced from the analysis as per Table B.
Table A: Summary of financial and other operating information
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Alpha division 2020
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Alpha division 2019
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Competitors 2020
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Sales revenue
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$89 mil
|
$79 mil
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$86 mil
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Less: Cost of sales
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$60 mil
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$54 mil
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Marketing
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$8.6 mil
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$7.9 mil
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|
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Staff training
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$4.2 mil
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$4.2 mil
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|
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Remedial work on orders
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$0.9 mil
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$0.8 mil
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Customer enquiry costs
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$1.6 mil
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$1.3 mil
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|
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Customer complaint related costs
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$0.2 mil
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$0.3 mil
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|
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Total costs
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$75.5 mil
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$68.5 mil
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$69.8 mil
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Net profit
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$13.5 mil
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$10.5 mil
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$16.2 mil
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# customer enquiries
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972
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985
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# customer orders placed
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976
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993
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# orders placed requiring remedial work
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292
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450
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# customer complaints
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107
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143
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Table B: Staff bonus calculation for 2020 using KPIs
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KPI
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Weighting factor (A)
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KPI total score % (B)
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Weighted score % (A)x(B)
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Revenue 2020 vs previous year
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0.13
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|
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Revenue 2020 vs competitor
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0.18
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|
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Profit 2020 vs previous year
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0.14
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Profit 2020 vs competitor
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0.16
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|
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Quality items 2020 vs 2019
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|
|
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No. of orders requiring remedial work
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0.09
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|
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No. of complaints investigated
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0.05
|
|
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% of enquiries converted into orders
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0.25
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|
|
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Total
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1.00
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Bonus (%) =
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(B) - each KPI score value is positive (+) where the 2020 value shows an improvement over the previous year or negative (-) where the 2020 value shows poorer performance than in the previous year.
Each KPI score value is the % increase (+) or decreases (-) in 2020 as appropriate.
propriate.
Compute the bonus in % as listed in Table B above.
don't need the process only answer