Understanding Process Performance Measurement Systems

The purpose of this paper is to analyze the current state of Process Performance Measurement Systems (PPMS) by means of a systematic review of literature. The PPMS literature is reviewed using a systematic approach. Based on an extensive literature review only twelve articles that contain the term PPMS in the title were found. The literature analysis showed that PPMS is a relatively new topic in the area of performance measurement. In order to understand PPMS, it was crucial to explain the concepts of business process management, business performance measurement and Performance Measurement System (PMS) which are well known and used in the literature and practice. PPMS is a special type of PMS that should be used in process-oriented organizations. Limitations of this research lie in the fact that all the conclusions were derived only from the literature, not empirical research. The results presented in the paper continue towards providing an updated overview of the current state of performance measurement, especially PPMS in order to identify the existing research gaps on which ongoing and future research efforts regarding this topic can be focused.business process management; process orientation; performance indicators; business performance measurement; Performance Measurement System; Process Performance Measurement System

Process performance measurement support : a critical analysis

Design development processes, within engineering disciplines, lack the necessary mechanisms in identifying the specific areas where improved design development performance may be obtained. In addition, they lack the means to consider and align the goals and respective performance levels of related development activities with an organisation's overall goals and performance levels. Current research in organisational performance behaviour, formalised through performance frameworks and methodologies, has attempted to identify and focus upon those critical factors which impinge upon a wealth creation system while attempting to, simultaneously, remain representative of organisational functions, processes, people, decisions and goals. Effective process improvements remain conditional upon: the ability to measure the potential performance gains which may result from an improvement initiative; the ability to understand existing process dynamics and in turn understand the subsequent impact of some change to a system/process; and, the ability to identify potential areas for improvement. The objective of this paper is to discuss some of the management techniques, which are purported to support various process performance concerns and perspectives, and present the major factors that remain unsupported in identifying, measuring and understanding design process performance

Development of a project level performance measurement model for improving collaborative design team work

This research explored a new direction of improving collaborative design by performance measurement. More specifically, a novel 3-dimensional performance measurement model is developed and the purpose of this model is to help project managers improve team collaboration by indicating strengths and weaknesses of team members during the project development process. Considering the complexity of collaborative design work, a multiple criteria model is proposed to reflect the design dynamics, which highlights five performance indicators: efficiency, effectiveness, collaboration, management skills and innovation. These five indicators are mostly influenced by role-based performance measurement criteria (the second dimension). Design and development process (time) is also considered (the third dimension). This 3D model allows all involved design participants to measure work performance at any time during the product development process. In order to develop this model, the role-based task analysis and industrial survey methods were utilized. Three groups of role-based product design and development performance measurement criteria were identified for measuring design performance of the top managers, middle managers and individual designers in a project team. A 3-dimensional performance measurement method was proposed to calculate final performance scores from a performance measurement matrix. The proposed model was evaluated as a tool which can support project managers to reduce potential design and collaboration risks and increase confidence in decision-making process. The model has been discussed on implementing in a web-based application for measuring design performance throughout the product design and development proces

The impact of process quality measurement on financial performance of market oriented firm

Market orientation and process quality measurement had been regarded in the literature as sources of competitive advantage for business performance.However, both these concepts had been discussed separately in their own respective academic discipline. In the context of business operation today,the organisation need to work as a team to survive in the challenging business environment. Market orientation originates from the marketing concept. On the other hand, process quality measurement originates from quality management principles and is viewed as one of its tools. Despite their importance, many organisations have not combined them in order to become a market driven and quality oriented organisation. Thus, this study investigated the impact of process quality measurement on the relationship between market orientation and financial performance of manufacturing firms in Malaysia. Although the overall results showed lack of evidence on the impact of process quality measurement on market orientation-financial performance relationships, individual results signified that process quality measurement moderate the relationship between market action and financial performance

Performance measurement systems development in a telecommunications company

Developing performance measurement is a necessary element for the effective management of organizations. Performance measurement has been gaining in importance in both operations and management literature. In this paper an evaluation of the development and implementation of performance measures is presented. Investigation of the process from an organizational viewpoint provides insights into the advantages and disadvantages of a strategic activity-based development framework for performance measurement. General issues and implications for the management of performance measurement development and implementation provide some fundamental guidelines

Measuring performance in healthcare

Hospitals invest in process management and process optimization from an organizational and patient perspective to increase efficiency and simultaneously the quality of their operations. Consequently, the use of process-oriented performance measurement systems gains importance. This study contributes to the development of a dashboard for the process of hip surgery using a case study design. We integrate strategic goals of hospital management and different stakeholders with the analysis of Business Process Management and Hospital Information Systems’ data. Process-oriented KPIs were integrated into the dashboard using a three-step approach. Dashboards enable healthcare organizations to put process-oriented performance measurement into practice

Driving continuous improvement

The quality of improvement depends on the quality of leading and lagging performance indicators. For this reason, several tools, such as process mapping, cause and effect analysis and FMEA, need to be used in an integrated way with performance measurement models, such as balanced scorecard, integrated performance measurement system, performance prism and so on. However, in our experience, this alone is not quite enough due to the amount of effort required to monitor performance indicators at operational levels. The authors find that IT support is key to the successful implementation of performance measurement-driven continuous improvement schemes

Performance measurement in the service business: the facilities management function

The nature of performance measurement has changed over the past few decades. Generally performance measurement indicates successful management in the fulfilment of organisation goals. In service businesses measuring customer satisfaction and service quality has become an industry standard and as FM is becomes more widely recognised as a component in the business value chain and corporate strategic objectives, the adoption of performance indicators that relate directly to the core business driver is key to success. This paper examines the state of knowledge of performance measurement in a facilities management context, expounds and reveals the role that performance measurement plays in the overall efficiency of the FM service function in relation to service business operation. The paper suggests that a fully developed performance measurement solution can deliver as a business tool whilst acting as a driver in the innovation process of service organisation

Understanding Process Performance Measurement Systems

The purpose of this paper is to analyze the current state of Process Performance Measurement Systems (PPMS) by means of a systematic review of literature. The PPMS literature is reviewed using a systematic approach. Based on an extensive literature review only twelve articles that contain the term PPMS in the title were found. The literature analysis showed that PPMS is a relatively new topic in the area of performance measurement. In order to understand PPMS, it was crucial to explain the concepts of business process management, business performance measurement and Performance Measurement System (PMS) which are well known and used in the literature and practice. PPMS is a special type of PMS that should be used in process-oriented organizations. Limitations of this research lie in the fact that all the conclusions were derived only from the literature, not empirical research. The results presented in the paper continue towards providing an updated overview of the current state of performance measurement, especially PPMS in order to identify the existing research gaps on which ongoing and future research efforts regarding this topic can be focused

VR-PMS: a new approach for performance measurement and management of industrial systems

A new performance measurement and management framework based on value and risk is proposed. The proposed framework is applied to the modelling and evaluation of the a priori performance evaluation of manufacturing processes and to deciding on their alternatives. For this reason, it consistently integrates concepts relevant to objectives, activity, and risk in a single framework comprising a conceptual value/risk model, and it conceptualises the idea of value- and risk based performance management in a process context. In addition, a methodological framework is developed to provide guidelines for the decision-makers or performance evaluators of the processes. To facilitate the performance measurement and management process, this latter framework is organized in four phases: context establishment, performance modelling, performance assessment, and decision-making. Each phase of the framework is then instrumented with state of-the-art quantitative analysis tools and methods. For process design and evaluation, the deliverable of the value- and risk-based performance measurement and management system (VR-PMS) is a set of ranked solutions (i.e. alternative business processes) evaluated against the developed value and risk indicators. The proposed VR-PMS is illustrated with a case study from discrete parts manufacturing but is indeed applicable to a wide range of processes or systems