Sept. 2013. Vol. 3, No.1 ISSN 2307-227X International Journal of Research In Social Sciences © 2013 IJRSS & K.A.J. All rights reserved www.ijsk.org/ijrss 69 SELECTING THE RIGHT KPIs FOR SMEs PRODUCTION WITH THE SUPPORT OF PMS AND PLM Sergei Kaganski, Aleksei Snatkin, Marko Paavel, Kristo Karjust Department of Machinery, Tallinn University of Technology, Ehitajate tee 5, 19086 Tallinn, Estonia Email:sergei.kaganski@outlook.com, aleksei.snatkin@ttu.ee, marko.paavel@ttu.ee, kristo.karjust@ttu.ee ABSTRACT: The finding right metrics and monitoring them can provide companies with additional benefits. Continuous study of indicators promotes enterprises with regular development and innovation aspects. The main objective of this study is to analyze the influence of key performance indicators (KPI) for product life management (PLM) and production monitoring systems (PMS) on production efficiency and on profit of small and medium sized enterprises (SME). The amount of different KPIs nowadays is very large and it causes difficulties for enterprises to make the right choice, what to measure and how to collect the data. PLM and PMS can provide managers and engineers with necessary information and KPIs, which are constrained by PLM and Monitoring, can reduce the amount of unwanted data to zero. During the study, the package of benefit KPIs would be created. Keywords: Key Performance Indicators (KPI), Productivity, Effectiveness, Product Lifecycle Management (PLM), Production Monitoring System (PMS) 1. INTRODUCTION The objective of this paper is to give an overview of existing KPIs, their structure and dividing by groups. Additionally to show, how KPIs are connected to PLM and PMS and how those two processes can help to choose right package of KPIs for companies. Measurements are important; they are showing to managers the problematic points and are helping to solve different issues for getting benefits. It is substantial for companies to figure out the pertinent indicators, clarify how they are connected to the formulated goals and how they rely on the performed activities [1]. The main purpose of measuring is to compare the previous data to new and to make the right conclusions for improving and revising the processes in enterprises. However, to know exactly, what measurements should be done, managers should know not only what common problems, questions and situations are appearing in SME processes in different fields (not only production, there are also logistic, quality etc.) but exactly the main problems in THEIR enterprise. On the one hand, is good to have theoretical base, on the other hand, is better to know that situations in practice are on different level, that the theory was describing them. Watt has distinguished following steps in the risk management process, which should be taken into account by managers [2]:  Establishing the SMEs risk strategy;  Determining the SMEs risk appetite;  Identification and assessment of risk;  Prioritizing and managing risk. However, Small and medium enterprises (SME) have thoughts, that they should not monitor systems/processes and also won’t spent time for searching of performance indicators, that should be studied and improved. If we try to find the answer, why it is so, then one of the general reasons is the lack of skilled educated workers, managers, since large companies, factories are aiming for specialists with university degree [3]. According the report, which was done by Institute of Chartered