Performance measurement is
a process for collecting and reporting information regarding the performance of
an individual, group or organizations. It can involve looking at
process/strategies in place, as well as whether outcomes are in line with what
was intended or should have been achieved. (http://en.wikipedia.org/wiki/Performance_measurement)
And
also, Performance measurement can help in analyze the performance of our
products, services, and the processes that produce them. It can help us
understand, manage, and improve how our organizations do. Performance measures
let us know:
· how well our product is doing
· if our product is meeting the production
goals
· if our customers are satisfied with the
product
· if our service processes are in statistical
control
· what we can do to improve them.
As a
process itself, performance measurement is an overall management system
involving prevention and detection aimed at achieving objects of the work
product or service to your customer's requirements. In addition, it is
concerned with process optimization through increased efficiency and
effectiveness of the process or product. These actions occur in a continuous
cycle, allowing options for expansion and improvement of the work process or product
as better techniques are discovered and implemented. (http://www.orau.gov/pbm/handbook/Section-1.html)
There
are six general categories which can be used as performance measurement groups.
1.
Effectiveness: A process characteristic indicating the degree to which the
process output (work product) conforms to requirements. (Are we doing the right
things?)
2.
Efficiency: A process characteristic indicating the degree to which the process
produces the required output at minimum resource cost. (Are we doing things
right?)
3.
Quality: The degree to which a product or service meets customer requirements
and expectations.
4.
Timeliness: Measures whether a unit of work was done correctly and on time. Criteria
must be established to define what constitutes timeliness for a given unit of
work. The criterion is usually based on customer requirements.
5.
Productivity: The value added by the process divided by the value of the labor
and capital consumed.
6. Safety:
Measures the overall health of the organization and the working environment of
its employees.
In the
project of SEPO, we used the first five categories to analyze the internal benefit
of the project.
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