This measure calculates warranty cost forecast accuracy by taking 100% minus the forecast variance amount. Forecast variance amount is the absolute difference between projected warranty cost and actual warranty cost, taken as a percentage of the actual warranty cost. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process group "Manage warranties".
Warranty cost forecast accuracy
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.