Performance measurement balanced scorecard

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. 

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

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. 

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

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). 

The balanced scorecard management system provides feedback concerning internal business processes and external outcomes. To improve performance, continuous improvement strategies are incorporated into the model. The process involves a defining the mission and goals for the organization. As with other performance improvement processes, the activities necessary to meet the goals are developed and measures indicative of that performance identified. Continual improvement is incorporated... 

Balanced Scorecard a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. 

A management control system, the balanced scorecard utilises financial performance measiues but sees these as a blunt instrument for performance measurement on their own, and argues for the use of measures of intangibles like skills, knowledge and communications etc. The balanced score-card measures internal, customer, innovation/learning as well as financial indicators. 

As Table 7.1 indicates there are some tools and techniques that are in common use across the operations and production and strategy and marketing and sales functions. The tools and techniques that tend to be used most commonly were clearly those related to performance measurement and IT and Internet business activities. Thus, KPls, E-Business applications, the balanced scorecard, benchmarking and activity based costing are all in use across the three functions. It is clear, however, that the operations and production function has a very high number of tools and techniques that it uses uniquely for its own purposes. This function-specificity is something that recurs when one considers the procurement and supply function. 

Anser R, Malik QA (2013) Cash conversion cycle and firms profitability a study of listed manufacturing companies of Pakistan. lOSR J Bus Manag 8(l) 83-87 Bhagwat R, Sharma MK (2006) Performance measurement of supply chain management a balanced scorecard approach. Comput Ind Eng 53 43-62... 

Many thousands of safety professionals are employed in organizations that use performance measurement systems such as the Balanced Score-card, Dashboards, Results-Based Management, Performance Prism, or others. Since it is important that they be perceived as members of the management team and participants in attaining management goals, they also have scorecards for safety and environmental performance. 

In March 2007, the American Society of Safety Engineers held a Symposium on Measuring Performance for Safety Success. Scorecards, Dashboards, and other reporting systems were mentioned. Gerald A. Turner, Senior Associate at The Balanced Scorecard Institute, was a key speaker. His subject was Using the Balanced Scorecard to Achieve Health Safety Performance Excellence. ... 

In the Balanced Scorecard approach, a business unit s mission and strategy are translated into tangible, measureable objectives. A balance is to be maintained between the outcome measures, the results from past efforts (the lagging indicators), and the measures that drive future performance (the leading indicators.) Operational processes, the authors say, are selected for emphasis that are most critical for achieving breakthrough performance (10). 

Thrner, Gerald A. Using the Balanced Scorecard to Achieve Health Safety Performance Excellence. Proceedings, ASSE Symposium on Measuring Performance for Safety Success, March 2007. 

A good reference line of key performance indicators of a supply chain is the Balanced Scorecard by Kaplan and Norton (1996). Kaplan and Norton argue that a valuation of intangible assets and company capabilities would be especially helpful since, for information age companies, these assets are more critical to success than traditional physical and tangible assets . The Balanced Scorecard retains traditional financial measures, customer services and resource utilization (internal business process) and includes additional measures for learning (people) and growth (innovation). This approach complements measures of past performance with drivers for future development. 

Balanced Scorecard Balanced Scorecard introduced by R. Kaplan and D. Norton in early 1990s is a concept for measuring a company s activities in terms of its vision and strategies, to give managers a comprehensive view of the performance of a business. Typically it comprises simple tables broken into four sections of perspectives which are labelled as Financial , Customer , Internal Business Processes and Learning Growth . 

Alsyouf, I. 2006. Measuring maintenance performance using a balanced scorecard approach. Journal of Quality in Maintenance Engineering 12(2) 133-149. 

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