Tracks the number or cost of penalties incurred due to missing agreed-upon service level timelines.

What it Measures ?

How much we pay for not meeting service timelines.

Relevant StakeHolders 

Legal, Service Managers

In-depth Use Case / Real-world Example

Service Level Agreements (SLAs) define response and resolution times for service requests. When a company fails to meet these terms, especially in contract-based manufacturing support, it may face penalties. For example, if a critical machine repair was promised within 4 hours but took 7, and this happens repeatedly, it can result in financial losses and strained client relationships. Reducing missed SLA penalties not only protects revenue but also strengthens service credibility and operational excellence.