Exhibit 5-6 Performance Evaluation Compared
Framework, performance is concerned with more than just the financial perspective. The process perspective adds time, quality, and efficiency as critical dimensions of performance. Decreasing the time a process takes to deliver its output to customers is viewed as a vital objective. Thus, nonfinancial, process – oriented measures such as cycletime and on – time deliveries become important. Performance is evaluated by gauging whether these are improving over time. The same is true for measures relating to quality and efficiency. Improving a process should translate into better financial results. Hence, measures of cost reductions achieved, trends in cost, and cost per unit of output are all useful indicators of whether a process has improved, Progress toward achieving optimal standards and interim standards needs to be measured The objective is to provide low – cost, high – quality products, delivered on a timely basis
Exhibit 5-6 Performance Evaluation Compared Framework, performance is concerned with more than just the financial perspective. The process perspective adds time, quality, and efficiency as critical dimensions of performance. Decreasing the time a process takes to deliver its output to customers is viewed as a vital objective. Thus, nonfinancial, process – oriented measures such as cycletime and on – time deliveries become important. Performance is evaluated by gauging whether these are improving over time. The same is true for measures relating to quality and efficiency. Improving a process should translate into better financial results. Hence, measures of cost reductions achieved, trends in cost, and cost per unit of output are all useful indicators of whether a process has improved, Progress toward achieving optimal standards and interim standards needs to be measured The objective is to provide low – cost, high – quality products, delivered on a timely basis
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