Create KPI thresholds
Create KPI thresholds that consist of predefined values that serve as benchmarks or limits for evaluating performance against specific objectives.
[Omitted video] Description: Create KPI thresholds.
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
Navigate to All > Supplier Lifecycle Operations > Source-to-Pay Workspace.
Select the list icon (
List icon.\), and navigate to **Lists** > **Performance management** > **KPI Templates**.
In the Name column, select the link to the KPI template.
Select the Thresholds tab and select New.
On the form, fill in the fields.
| 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. |
| 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. |
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.
Parent Topic:Configure Supplier Relationship and Performance Management
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