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Celonis Product Documentation

Validating KPIs for the object-centric Inventory Management Control Center app

In the Inventory Management Control Center app’s Knowledge Model “Knowledge Model”, check that all the KPIs (key performance indicators) contain the correct business logic for your organization.

The main Knowledge Model for the Inventory Management Control Center app is “Knowledge Model”, which is at the top level in the app package. Work with this Knowledge Model to validate and change KPIs. “Knowledge Model” points to the base Knowledge Model stored in the Celonis Marketplace, which you can’t update directly. Changes that you make to the PQL formulas, KPI names, or formatting in “Knowledge Model” override the base Knowledge Model.

Each KPI in a Knowledge Model contains a PQL (Process Query Language) formula. Some KPIs are reused inside other KPIs as nested formulas. When you adjust the business logic in a single formula, and save it, the change is simultaneously reflected in all the KPIs that reuse the formula.

You work with Knowledge Models in Studio, and any changes you make are applied when you publish a new version of the app. You’ll need Analyst permissions on Studio and the Knowledge Model to modify any of the KPIs and their calculations. If you need training, check out the training track “Build Knowledge Models and Views” on the Celonis Academy.

Here’s how to work with the KPIs in “Knowledge Model”:

  1. In the Celonis navigation menu, select Studio.

  2. Find the Inventory Management Control Center app in your Studio space navigation.

  3. Expand the package’s structure using the arrow.

  4. Select “Knowledge Model”.

  5. Select the KPIs section of the Knowledge Model.

  6. You can sort and search the KPIs using their name or ID. The prefix to the ID shows what type of component they are. At the end of these instructions, we’ve noted the most important KPIs to check.

  7. To see and edit the full PQL formula and other settings for a KPI, click its row to open an editor. The editor automatically validates any changes that you make in the PQL formula.

  8. If you want a fuller-featured PQL editor that lets you select from the tables and columns in your data, click on the pen icon next to the PQL formula.

  9. If you need to disable a KPI or formula, click the three vertical dots at the top of the editor, and select Disable Scope, then click Disable to confirm. When you do this, the object can't be accessed or used anywhere in the package, including by other apps that depend on it.

  10. If you make any changes to the business logic used in a KPI, update the end user documentation in the app’s Documentation folder.

  11. When you’ve made changes to the KPIs, use the Publish Package button at the top of the screen in your Studio space to publish a new version of the app.

imcc_oc_km_records.png

The in-app documentation that you can find using the “About this View” button in the Control Center view has information about the KPIs used in the tab and their calculations. Here’s the descriptions and the matching KPI IDs from the Knowledge Model:

Table 10. KPIs surfaced in the Inventory Management Control Center app

KPI

Definition

KPI ID in Knowledge Model

Excess Inventory Rate

The percentage of inventory on hand (i.e. total stock) which exceeds current target stock. Target stock is computed based on safety stock and cycle stock

KPI_MaterialMasterPlant_Calc_ExcessInventoryRate

Material Availability

The average share of days on which a given material has had a stock greater than zero in a given timeframe. The time period considered for evaluation is given in parentheses, for example (1y) limits the input to the last twelve closed months

KPI_MaterialMasterPlant_Avg_MaterialAvailability

Turnover Rate

The total consumption divided by the average inventory across the same time period based on valuated stock and consumption. Consumption is defined as the amount of consumed inventory in the considered timeframe

KPI_MaterialMasterPlant_Sum_TurnoverRate

Service Level

The share of Sales Orders delivered between one day before and one day after the confirmed date during the considered timeframe

KPI_MaterialMasterPlant_Avg_ServiceLevelIsOnTime

Days of Cover

The amount of days a particular material would have stock based on historical consumption levels, if no other replenishment took place

KPI_MaterialMasterPlant_Sum_DaysOfCover

Supplier Reliability

The share of purchase orders received between five days before or one day after the scheduled date during the considered timeframe

KPI_MaterialMasterPlant_Avg_SupplierReliabilityIsOnTime

Production Adherence

The share of Production Orders completed between one day before or one day after the scheduled date during the considered timeframe

KPI_MaterialMasterPlant_Avg_ProductionAdherenceIsOnTime



Here’s a summary for the most important KPIs as they appear in the Knowledge Model:

Table 11. Main KPIs in the Knowledge Model for the Inventory Management Control Center app

KPI ID

Formula description

CalculatedAttribute_MaterialMasterPlant_Stockout

Business logic for stockouts -  identifies a stockout if inventory on hand and consignment stock are zero while safety stock is greater than zero

CalculatedAttribute_MaterialMasterPlant_UnderStock

Business logic for under stock - identifies under stock if inventory on hand is between zero and safety stock, or if inventory on hand is zero while there is still consignment stock available

CalculatedAttribute_MaterialMasterPlant_ExcessStock

Business logic for excess stock - identifies excess stock if excess inventory rate is greater than zero but smaller than 100%

CalculatedAttribute_MaterialMasterPlant_ObsoleteStock

Business logic for obsolete stock - identifies obsolete stock if excess inventory rate equals 100% and there is no future demand

CalculatedAttribute_MaterialMasterPlant_UntouchedStock

Business logic for untouched stock - identifies untouched stock as minimum unsold stock level if said minimum is greater than safety stock

CalculatedAttribute_MaterialMasterPlant_InventoryClassification

Computes overall inventory classification

CalculatedAttribute_PlannedOrder_IsOpen

Identifies open planned orders

CalculatedAttribute_PurchaseRequisitionItem_IsOpen

Identifies open purchase requisitions

CalculatedAttribute_PurchaseOrderItem_IsOpen

Identifies open purchase orders

CalculatedAttribute_ProductionOrderItem_IsOpen

Identifies open production orders

CalculatedAttribute_MaterialReservationItem_IsOpen

Identifies if a material reservation is open

CalculatedAttribute_SalesOrderItem_IsOpen

Identifies open sales orders

CalculatedAttribute_MaterialRequirement_IsOpen

Identifies if an independent material requirement is open

CalculatedAttribute_PurchaseOrderItem_OnTimeDelivery

Indicates if a purchase order was received early, on time, or late - used to compute supplier reliability KPIs

CalculatedAttribute_ProductionOrderItem_OnTimeDelivery

Indicates if a production order was completed early, on time, or late - used to compute production adherence KPIs

CalculatedAttribute_SalesOrderItem_OnTimeDelivery

Indicates if a sales order was shipped early, on time, or late -  used to compute service level KPIs (this logic is identical to the “On Time Deliveries” in the Celonis Order Management apps)



While stockout and under stock scenarios rely on “hard values” like no inventory or a certain safety stock, the threshold for excess or obsolete stock is determined dynamically based on actual replenishment lead times and consumption. This threshold is referred to as “target stock”. Here’s the KPIs that influence it:

Table 12. KPIs influencing Excess Stock

KPI ID

Formula description

KPI_MaterialMasterPlant_Calc_ExcessInventoryRate

Share of excess in a material’s inventory

KPI_MaterialMasterPlant_Calc_TargetStockQuantity

Threshold to excess stock - computed by adding current safety stock to initial stock (sometimes also referred to as cycle stock)

Formula_MaterialMasterPlant_PuSum_ConsumptionQuantityConverted

Total of consumed quantity for a material in a given time period

KPI_MaterialMasterPlant_Calc_ActualReplenishmentLeadTime

Actual replenishment lead time (Purchasing or Production) of a Material Plant combination - used if no past orders are available to compute an actual value

KPI_MaterialMasterPlant_Calc_PlannedReplenishmentLeadTime

Planned replenishment lead time (Purchasing or Production) of a Material Plant combination - used if no past orders are available to compute an actual value