ABSTRACT
This chapter introduces the concept of performance, performance patterns, and their measurement. It discusses cost performance measurement and relationships between costs, productivity, and efficiency. 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. Key performance indicators (KPI) are algorithms that process a series of information relating to a process, or a part thereof, producing a result which is a parameter that denotes the trend or a significant component of the causes which determine the same. Incoming quality is correlated with the performance of suppliers and the efficacy of the purchasing department in pursuing company objectives. A matrix can be used to illustrate the classification of time performances, based on dimensions of internal/external performance and their short/long-term features in relation to production/delivery cycles and product-development cycles.
