By Stefano Tonchia, Luca Quagini (auth.)
This publication describes – in an actual yet sensible manner – the latest advancements in functionality dimension and the relative functionality dimension structures (PMS), whose most renowned one is the Balanced Scorecard version. it truly is detailed as a result of integration of PMS concept (types of performances, Key functionality symptoms, structure and integration with ERP, association and technique) with the company Intelligence (BI) applied sciences, which represent the main complex potent options. The rigorous educational strategy of a widely known overseas professional – Professor Tonchia – is blended with the managerial contribution of a global consulting chief – Luca Quagini, CEO of SDG team. There are only a few, if any, books within the functionality administration box that describe intimately a true procedure for designing and dealing with those structures, with the volume of element and giving the helpful, sensible realizing of the underlying ideas and particular tactics and practices which are provided here.
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Extra resources for Performance Measurement: Linking Balanced Scorecard to Business Intelligence
Sample text
In the case of human resources, the value corresponds to the absence rate multiplied by company personnel costs. The diagram in Fig. 5 shows how practical availability, minus absenteeism, does not provide the number of production hours, THEORETICAL AVAILABILITY ABSENTEEISM PRACTICAL AVAILABILITY WORKING HOURS PRODUCED HOURS Fig. ) and the losses (relative to scrap and reworking); the production hours correspond to the “good” quality amount produced per cycle time. 7 Efficiency and Productivity Performance Measurement To start with, it is best to clarify what the terms productivity and efficiency actually mean as they are often mistakenly used as synonyms: productivity is a ratio between output and input, while efficiency is the ratio between productivity and a standard: productivity ¼ ðactual outputÞ=ðactual inputÞ; efficiency ¼ ½ðactual outputÞ=ðactual inputÞ=½ðstandard outputÞ=ðstandard inputÞ ¼ ½ðactual outputÞ=ðstandard outputÞ=½ðactual inputÞ=ðstandard inputÞ: Productivity is therefore expressed by a ratio between quantity (or value) of a realised product and the quantity (or value) of used resources, while efficiency is expressed by a number, usually less than one unit (if the set goals or standards are ambitious, rigorous).
The elements, namely the performance indicators, which – assuming a value – determine a measurement 2. The architecture, namely the composition rules of the “building blocks” of performance indicators 3. 1 Performance Indicators and Measures A performance measure is the value assumed by an indicator (of performance). The performance will be ex ante an objective (of performance) and ex post a result (of performance). ) seen in the previous chapters, we should also consider the formalisation, which includes the formalisation of performance indicators and the formalisation of measurement processes, further to the synthesis of measures in a new mesure.
And the losses (relative to scrap and reworking); the production hours correspond to the “good” quality amount produced per cycle time. 7 Efficiency and Productivity Performance Measurement To start with, it is best to clarify what the terms productivity and efficiency actually mean as they are often mistakenly used as synonyms: productivity is a ratio between output and input, while efficiency is the ratio between productivity and a standard: productivity ¼ ðactual outputÞ=ðactual inputÞ; efficiency ¼ ½ðactual outputÞ=ðactual inputÞ=½ðstandard outputÞ=ðstandard inputÞ ¼ ½ðactual outputÞ=ðstandard outputÞ=½ðactual inputÞ=ðstandard inputÞ: Productivity is therefore expressed by a ratio between quantity (or value) of a realised product and the quantity (or value) of used resources, while efficiency is expressed by a number, usually less than one unit (if the set goals or standards are ambitious, rigorous).