Nonfinancial performance measures respond to these problems by using simple
physical data rather than allocated accounting data, by being unconnected to the general
financial accounting system, by being selected to measure only one specific aspect of
performance rather than to be “all things for all purposes,” or by a combination of these
factors. Some nonfinancial performance measures are simple counts or percentages of
desirable or undesirable events and are intended to measure the efficiency or effective
ness of a production process. Examples of this kind of nonfinancial performance measures are the number of defective units produced, number of good units produced, good
units as a percentage of total units, hours of machine downtime, unscheduled downtime
as a percentage of total downtime, number of days operating on schedule, days operating
on schedule as a percentage of total days operating, weight of scrap material produced,
and scrap weight as a percentage of shipped weight.