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MEASURING PERFORMANCE
Introduction
Life is all about setting goals and trying to achieve them. The same theory also applies in the managerial industry. The accomplishment of desired results in a business is called performance. One of the major concerns of the top managers of a firm is the actual performance of the firm so its measurement is unavoidable.
It is really important and necessary that the performance is measured at all levels. The performance is usually divided into five parts in order to be measured in a simpler and more accurate way:
? Customer Service and Satisfaction
? Finance
? Operations
? Safety
? Staffing
I will concentrate in operations identifying relevant performance measures and comparing them to measures used by my syndicate company Price Waterhouse Coopers (PwC).
Analysis
Operations are all the processes in transforming inputs into desired outputs. These processes must be efficiently and effectively coordinated by managers and eventually they must accomplish specific organizational goals. All operations, despite how well managed they are, are capable of improvement. In order for the operations to be improved however, weaknesses should be identified first. Therefore operations need some kind of performance measurement as a prerequisite for improvement.
In the operations area we need to consider five aspects which will be critical to measure. These ‘performance indicators’ are:
• Quality (How Good?)
• Quantity-Dependability (How many?)
• Time-Speed (How ...