Business organization requires an unified management system where Core Strategic objectives are defined and set, assisting people to target the cost at initial stage, to evaluate results and take appropriate action as necessary in order to meet core strategic objectives that covers companywide activities to acquire profit in the short and long - term. This illustrates the importance of the right areas and activities being targeted, measured and improved. In summary, the ultimately purpose of performance management being to drive future improvements meeting the core objectives.
Currently, manufacturing industry is composed of group of six primary resources such as: services, work-methods, people, equipment, infrastructure and raw materials the six resources are interrelated and the level of optimization and the performance of these resources yield to the performance of the business towards the core strategic goals. The saying is easy to understand practically, it is complex to measure results in the purpose of improving causal factors. In this regard, factories have developed and implemented series of KPIs to monitor results some of them have no link to the strategic goals or independent measuring results only without action is not enough as opposed to the purpose of performance measurement. The selection of KPIs has a major impact on the operation and direction of the organization and information of the factors driving behavior and influencing performance this becomes crucial. Each organization needs to be unique and KPIs should reflect its internal and external key-drivers.
KPIs should focus on topics that are important and be at all-time clear about what is seeking to achieve – its core strategic objectives- and how is going to achieve them. KPIs should focus on the actions and services provided at each level in the organization to achieve its common objectives. Conclusion - Performance Measurement is a system thinking to provide much important information for understanding and improving Standards especially at corporate and operational and day-to-day matters. Also an important rule is that organizations should be careful in defining the KPIs drivers and key – Factors. The best method been applied in lean organization is the use of “3D Box Score” three dimensional information chart covering operational, Manufacturing Resources utilization and financial keys.
