# KPI Target Setting Worksheet

> Source: https://netray.co/tools/kpi-target-setting-worksheet
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Compare baseline, best recent result and target for each KPI, with gap and improvement percent computed per row.

## Category

manufacturing

## Audience

- Operations manager
- Controller
- Plant manager

## Tool

**Kind:** worksheet

**Mode:** editable

**Columns:**

#### KPI

**Key:** kpi

**Type:** text

#### Unit

**Key:** unit

**Type:** select

**Options:**

- %
- days
- turns
- ppm
- hours
- $

#### Baseline (12-mo average)

**Key:** baseline

**Type:** number

**Format:** decimal

#### Best month in last 12

**Key:** best

**Type:** number

**Format:** decimal

#### Target

**Key:** target

**Type:** number

**Format:** decimal

#### Gap to target

**Key:** gap

**Type:** number

**Expr:** target - baseline

**Format:** decimal

#### Change vs baseline (%)

**Key:** gap_pct

**Type:** number

**Expr:** if(eq(baseline,0),0,(target-baseline)/baseline*100)

**Format:** percent

#### Share of baseline-to-best gap

**Key:** stretch_ratio

**Type:** number

**Expr:** if(eq(best-baseline,0),0,(target-baseline)/(best-baseline)*100)

**Format:** percent

**Help:** Over 100% means the target beats your best month. Treat with caution.

**Rows:**

**Kpi:** On-time delivery

**Unit:** %

**Baseline:** 86

**Best:** 93

**Target:** 92

**Kpi:** Inventory turns

**Unit:** turns

**Baseline:** 4.2

**Best:** 5.1

**Target:** 4.8

**Kpi:** First pass yield

**Unit:** %

**Baseline:** 94.5

**Best:** 97

**Target:** 96

**Kpi:** Days sales outstanding

**Unit:** days

**Baseline:** 52

**Best:** 44

**Target:** 47

**Kpi:** Schedule attainment

**Unit:** %

**Baseline:** 78

**Best:** 90

**Target:** 88

**Notes:** For KPIs where lower is better (days, ppm), the gap is negative. That is expected. A target that sits between baseline and best month is usually achievable; one beyond the best month needs a named change, such as new equipment or a process fix.

## Content

**Intro:** A target pulled from the air gets ignored. This worksheet anchors each target to what the plant has actually done, using a 12-month baseline and its best month, then shows how large a jump you are asking for.

**Sections:**

#### How to use it

**Body:** Pull twelve months of each KPI from your ERP or reporting layer. Enter the average as baseline and the best single month as best. Type your proposed target and read the gap, the percent change versus baseline, and how much of the baseline-to-best distance you are claiming. Export to Excel for the planning meeting. Revise the target, not the data, when the ratio looks unrealistic.

#### The method behind the columns

**Body:** The best month is proof that the process can reach that level at least once. A target at 50 to 80 percent of the distance from baseline to best is usually a fair commitment for a year. Targets beyond the best month need a specific improvement project behind them. For lower-is-better KPIs the same logic holds with the sign reversed.

**Bullets:**

- Gap to target: target minus baseline
- Change vs baseline: gap divided by baseline
- Share of distance: how far toward your best month the target sits
- Use medians if one-off events distort the average

#### Common mistakes

**Body:** Do not set targets from budget percentages alone, and do not copy industry benchmarks without checking the definition: on-time delivery to request date and to promise date are very different measures. Avoid changing the definition mid-year, since the trend becomes meaningless. Record any known one-off event, such as a plant shutdown or an ERP cutover, beside the baseline so the next reader knows why a month looks odd.

**Cta:** If pulling twelve months of KPI history takes a week, Netray can help automate the extraction from your ERP while keeping the data on your own systems.

**Faq:**

#### Should targets be the same every year?

**Answer:** Not usually. Once a target is met for several months, either raise it or move attention to a weaker KPI. A target that never moves tends to become a ceiling rather than a goal.

#### What baseline period is best?

**Answer:** Twelve months smooths seasonality. If the process changed recently, such as a new ERP or routing, use only the months since the change and note the shorter window beside the KPI.

#### How do I handle lower-is-better KPIs?

**Answer:** Enter values as usual. The gap will be negative, which is correct. Read the share-of-distance column the same way, since both baseline-to-best and baseline-to-target move in the same direction.

#### Are benchmark values useful?

**Answer:** They help as a sanity check but only when the definitions match yours. Your own best month is a safer anchor because it is measured the way your ERP measures.

## Search terms

kpi target setting template, kpi baseline and target excel, manufacturing kpi targets, how to set kpi targets, kpi gap analysis template, operations targets worksheet

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