Operational Performance Measure
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An Operational Performance Measure is a performance measure that quantifies the effectiveness and efficiency of operational processes within an organization.
- Context:
- It can (typically) monitor Process Performance through efficiency tracking.
- It can (typically) evaluate Resource Utilization through usage analysis.
- It can (typically) assess Output Quality through defect monitoring.
- It can (typically) track Service Level through delivery measurement.
- It can (typically) measure Production Efficiency through throughput analysis.
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- It can (often) analyze Cost Efficiency through resource optimization.
- It can (often) monitor Equipment Performance through utilization tracking.
- It can (often) evaluate Labor Productivity through output measurement.
- It can (often) track Supply Chain Efficiency through logistics analysis.
- It can (often) assess Quality Control through process monitoring.
- ...
- It can range from being a Basic Operational Performance Measure to being a Complex Operational Performance Measure, depending on its measurement sophistication.
- It can range from being a Single Process Metric to being an Integrated System Measure, depending on its scope.
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- It can integrate with Business Intelligence (BI) systems for real-time monitoring.
- It can support Continuous Improvement through performance tracking.
- It can inform Resource Allocation through efficiency analysis.
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- Examples:
- Production Performance Measures, such as:
- Quality Performance Measures, such as:
- ...
- Counter-Example(s):
- Strategic Performance Measure, which focuses on long-term business outcomes and not operational day-to-day activities.
- Customer Satisfaction Measure, which assesses the external perception of service quality rather than internal operational processes.
- Market Share Measure, which focuses on the company’s performance relative to competitors, not the efficiency of its internal operations.
- See: Key Performance Indicator (KPI), Lean Manufacturing, Six Sigma, Total Quality Management (TQM), Overall Equipment Effectiveness (OEE), Supply Chain Performance Measure.
- Counter-Examples:
- Strategic Performance Measure, which focuses on long-term outcomes rather than operational efficiency.
- Customer Satisfaction Measure, which assesses external perception rather than internal processes.
- Market Share Measure, which measures competitive position rather than operational effectiveness.
- See: Key Performance Indicator (KPI), Lean Manufacturing, Six Sigma, Total Quality Management (TQM), Overall Equipment Effectiveness (OEE), Supply Chain Performance Measure.