Three operations process objectives are almost always mentioned and emphasized: increase
process quality, increase process efficiency, and decrease process time. Examples
of process quality measures are quality costs, output yields (good output/good input),
and percentage of defective units (good output/total output). Quality costing and control
are discussed extensively in Chapter 14. Measures of process efficiency are concerned
mainly with process cost and process productivity. Measuring and tracking
process costs are facilitated by activity-based costing and process value analysis. These
issues were explored in depth in the activity-based management chapter (Chapter 12).
Productivity measurement is explored in Chapter 15. Common process time measures
are cycle time, velocity, and manufacturing cycle effectiveness (MCE)