Three Critical KPIs for NDT Inspections Companies
For NDT inspections companies, performing safe, accurate industrial inspections is a complex endeavor. Business operations can be difficult to keep in synch when you factor in quoting, scheduling, change order management, customer reporting and billing.
Depending on a company’s size and the inspections it performs, many NDT inspections firms have several enterprise applications deployed. These are generally applications that process, store and visualize data, and they are often specialized and lack integration capabilities. This often results in a lack of visibility into what’s occurring at the job site — how long a job took to complete, what equipment was used, who performed the work, and more.
This lack of visibility has implications on customer satisfaction and retention. To keep tabs on the metrics that are most significantly impacting the business, operations managers at NDT inspections companies need Key Performance Indicators (KPIs) to track over time. KPIs vary from business to business depending on size and the types of services delivered. We examine below three KPIs that are important for NDT inspections companies to track. These will provide valuable insight into where breakdowns are occurring and where improvements need to be made.
Quote to Cash
Quote to cash is perhaps the king of business KPIs, one on which all companies must focus to maintain profitability and competitive advantage. Maintaining an efficient quote to cash cycle is, to say the least, challenging. Any business that is making sales but failing to collect cash at the end of the day certainly has room for improvement. As distant as it may seem to your business, many NDT inspections companies struggle with accurately billing customers, then collecting payment in a timely fashion. So, stay on top of this KPI and, if need be, invest in technology and software tools to help improve it.
This KPI focuses on how productive your techs are. Do you know how much of your inspectors’ time is spent on billable work versus internal requirements like meetings, paperwork, travel, etc.? Are they able to accurately track their billable time? Do they have the mobile tools they need to capture change orders at the job site? Can they process quotes, invoices, and collect data, including images, at the job site? If you don’t know the answers to these questions, it’s time to find out. Focus on improving the inspector utilization KPI and other KPIs will also improve by default.
Number of Inspections Overdue
If your company has a backlog of NDT inspections that have yet to be completed, your business is in peril of losing customers. Eventually, customers will leave and find a company that can meet their needs. NDT inspections that lie in wait also pose potential jeopardy for inspectors, customers, and the environment. Make sure this KPI is moving in the right direction, again by investing in tools to help your inspectors be more productive and accountable.
In the NDT inspections business, it’s imperative that you keep improving, adding to your customer base, and retaining the customers you already have. Stay focused on these three KPIs and you will go along toward ensuring future profitability and competitive advantage.
For more ideas on KPIs for your NDT inspections company, visit the KPI Library.
To learn more about improving your NDT inspections business, read the Floodlight Software Solutions Sheet. It’s the only cloud-based inspections management software platform that gives you the flexibility to meet both internal operations and customer requirements.