Performance measures are recognized as an important element of all Total Quality Management
programs. Managers and supervisors directing the efforts of an organization or a group have a
responsibility to know how, when, and where to institute a wide range of changes. These changes
cannot be sensibly implemented without knowledge of the appropriate information upon which they
are based. In addition, among many organizations within the Department of Energy (DOE) complex,
there is currently no standardized approach to developing and implementing performance
measurement systems. As a result, performance measures have not been fully adopted to gauge the
success of the various quality management programs practiced by members of the Department of
Energy Nevada Operations Office (DOE/NV) Family Quality Forum.
To address these issues, the steering committee members commissioned a work group to study the
development, implementation, and operation of performance measurement systems. This guidance
document, the product of the work group, provides a comprehensive, step-by-step explanation of
how to develop performance measurements at any level within an organization and how to evaluate
their effectiveness.
Appendix A contains a glossary of terms that may be used in this guidance document. The
accompanying Case Study (Appendix B) illustrates a practical example of how to put the concepts
of the guidance document to use. Appendix C contains examples of performance measurements that
can be considered.
The implementation of performance measurements for a specific process should involve as many
cognizant employees as possible to stimulate ideas and reinforce the notion that this is a team effort
requiring buy-in from all involved in order to succeed. Substantial benefits are realized by
organizations implementing performance measurement programs. These benefits are realized almost
immediately through an improved understanding of processes by all employees. Furthermore,
individuals get an opportunity to receive a broadened perspective of the organization's functions,
rather than the more limited perspective of their own immediate span of control.
As a process, performance measurement is not simply concerned with collecting data associated with
a predefined performance goal or standard. Performance measurement is better thought of as an
overall management system involving prevention and detection aimed at achieving conformance of the
work product or service to your customer's requirements. Additionally, 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.
Performance measures are recognized as an important element of all Total Quality Management
programs. Managers and supervisors directing the efforts of an organization or a group have a
responsibility to know how, when, and where to institute a wide range of changes. These changes
cannot be sensibly implemented without knowledge of the appropriate information upon which they
are based. In addition, among many organizations within the Department of Energy (DOE) complex,
there is currently no standardized approach to developing and implementing performance
measurement systems. As a result, performance measures have not been fully adopted to gauge the
success of the various quality management programs practiced by members of the Department of
Energy Nevada Operations Office (DOE/NV) Family Quality Forum.
To address these issues, the steering committee members commissioned a work group to study the
development, implementation, and operation of performance measurement systems. This guidance
document, the product of the work group, provides a comprehensive, step-by-step explanation of
how to develop performance measurements at any level within an organization and how to evaluate
their effectiveness.
Appendix A contains a glossary of terms that may be used in this guidance document. The
accompanying Case Study (Appendix B) illustrates a practical example of how to put the concepts
of the guidance document to use. Appendix C contains examples of performance measurements that
can be considered.
The implementation of performance measurements for a specific process should involve as many
cognizant employees as possible to stimulate ideas and reinforce the notion that this is a team effort
requiring buy-in from all involved in order to succeed. Substantial benefits are realized by
organizations implementing performance measurement programs. These benefits are realized almost
immediately through an improved understanding of processes by all employees. Furthermore,
individuals get an opportunity to receive a broadened perspective of the organization's functions,
rather than the more limited perspective of their own immediate span of control.
As a process, performance measurement is not simply concerned with collecting data associated with
a predefined performance goal or standard. Performance measurement is better thought of as an
overall management system involving prevention and detection aimed at achieving conformance of the
work product or service to your customer's requirements. Additionally, 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.
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