Measures balanced scorecard

D. Norton and R. Kaplan, The balanced scorecard—measures that drive performance, Harvard Business Revue (Jan./Feb. 1992). 

Kaplan, R. S., Norton, D. P., et al. The balanced scorecard - measures that drive performance. Harvard Business Review, 70(l) 71-79, 1992. 

TABLE 16.4 Supply Chain Impact on Balanced Scorecard Measures... 

Balanced Scorecard Measures Supply Chain Impact... 

Key Performance Indicators (KPIs) in supply chain balanced scorecards and performance management are one example for analysis methods. Beamon (1998) and Chan (2003) distinguish qualitative performance measures such as customer satisfaction, on-time delivery, fill rate or flexibility as well as quantitative measures based on costs in distribution, manufacturing and inventory or warehousing. 

Some of the more common performance measurement systems used to assess pharmaceutical outcomes include report cards, balanced scorecards, clinical value compasses, profiling, performance-based evaluation systems, and others. The goals of pharmaceutical performance measurement systems are to 1) compare treatment modalities fairly 2) recognize and promote good care 3) identify and eliminate substandard care and 4) improve the level of care overall.Because performance measures can include data over the course of treatment, the outcomes of alternative therapies and practices may be detected. The end goal of any performance measurement system should not be cost containment only improving patient outcomes must be a primary concern, keeping in mind the cost effectiveness of the therapy and sustainability of the system. 

A. Performance measiires The first step in establishing an effective maintenance basics program is to identify and establish performance measures. Most experienced managers have learned that you get what you measme. Successful pharmaceutical plants develop and implement a series of supportive key performance measures to track and manage improvement of maintenance/reliability. Examples are mean time between failure, maintenance cost per unit of output, percent planned and scheduled maintenance, preventive maintenance tasks completed, expense maintenance cost as a percentage of replacement asset value, etc. These indicators must be available to aU levels of an organization and shoiild be used to maximize individual and group contributions. It would be best if these indicators were part of the reliability-balanced scorecard. 

The balanced scorecard a change in what performance means and how its is measured... 

Instead, the direct evaluation of cost drivers is in focus for optimization. Cost drivers are performance measures driving costs or profit but their immediate contribution to total costs/profit cannot be expressed explicitly.For assessing the SC performance diverse performance measurement systems are proposed with many of them relying on the balanced scorecard approach in combination with the SCOR model.Performance measures can be categorized according to the dimensions of the balanced scorecard or... 

See Kaplan et al. (1992) for the seminal work on the balanced scorecard and Bhagwat and Sharma (2007) for performance measurement systems in SCM based on the balanced scorecard approach. See Siirie and Wagner (2008) or Gunasekaran et al. (2004, 2001) and Agami et al. (2012) for an overview of performance measurement systems. 

Bhagwat, R. and Sharma, M. K. Performance measurement of supply chain management A balanced scorecard approach. Computers Industrial Engineering, 53(l) 43-62, 2007. 

The Balanced Scorecard (BSC) was originally proposed to improve a company s performance measurement. Traditionally, the measurement had been focused only on financial measures. The target of the BSC is to expand the measurement information by adding non-financial, long-term and immaterial factors into the measurement system. Originally the BSC consisted of four measurement perspectives financial perspective, external relations such as customers or partners, internal processes, and learning and growth. (Andersen, Cobbold Lawrie 2001). 

Measurement and strategic adjustment of the downstream e-supply chain network and the upstream service provider business remains vital to maintaining and improving competitive positioning. The balanced scorecard offers such measurement dimension. 

Today, various virtual e-services and physical services models may be developed, evaluated, and monitored using a balanced scorecard approach. The service value network concept also fits under this measured strategic decision-making approach. Service value networks house fully integrated e-demand and e-supply chains working in harmony to the deliver both services and e-services. They are also highly agile and offer customer-induced flexible business solutions to customer requests. 

The BSC approach takes broad corporatewide goals and cascades them down into meaningful measures for departments, groups, and individuals. The balance in the balanced scorecard approach comes from the breadth of the measures. Rather than following the common practice of limiting measurement to financial information, the balance is provided by four perspectives ... 

The use of metrics has been a hot management topic for several years. This popularity has been fueled by two primary factors. The first is the phenomenal success of a series of articles in the Harvard Business Review and a subsequent book. The Balanced Scorecard, by Kaplan and Norton, which make a case for metrics as a key ingredient for excellence in both operations and strategy. The second is the fact that metrics are easy to implement and produce very clear and measurable results, causing metric success to be largely self-propitiating. 

Balanced scorecard An approach to measurement that cascades measures from the top down through the organization. The method uses four perspectives to achieve balance. These are financial, customer, internal business, and irmovation and learning. 

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