chapter  19
14 Pages

Performance Measurement

Performance measurement is an important issue in manufacturing organizations. The management can understand the state of the manufacturing system and take appropriate action for maintaining competitiveness based on the observed values of various performance measures. We list the generic functions of manufacturing performance measures here (Hon, 2005):

• They re¨ect the current state of the manufacturing system. • They monitor and control operational ef€ciency. • They drive the improvement program. • They measure the effectiveness of manufacturing decisions.