Operational Effectivess Essay

4120 Words Apr 26th, 2008 17 Pages
Most of the company’s have a performance measurement and management system which deals with enhancing the performance of individuals or operations in a company, may it be a manufacturing or a non- manufacturing company. Performance measurement (PM) is a useful tool that helps the company reach its goals, and goals are straightforwardly described by Goldratt as, “the goal of a firm is to make money’, and without the right performance of individuals and operations, it cannot reach its goals. (TXTBK OPERATIONS MGT FOR COMPETITIVE EDGE).
First will define PM, and explain the use of PM in comtemporary business companies later explains how to appropriately conucdt performance measurement as discussed by scholars. Then will talk bout HD
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These domains suggest areas in which to focus improvement efforts. More explanation follows.

The mission is the ultimate purpose of the organization which is normally updated during strategic planning. There should be an identification of results by establishing units of performance with the products and services and the results should be considered in terms of quantity, quality, time and cost. For example results might be increasing profits by 25% by the next year-end (Free Management library 2007).

There are numerous processes in an organization, too many to mention. Start by thinking about where problems have appeared in the organization, or where improvement will be needed to meet goals identified during strategic planning. To get in the mindset for identifying processes, think about processes of market research to identify customer needs, product design, product development, budget development, customer service, financial planning and management, program development. a series of steps designed to produce a product or service. “Quality and reengineering efforts focus on the process performance area” (TXT BK THE ESSENCE OF TOTAL QUALITY MGT).

The Critical Performance Subsystems (CPS) Performance domain defines internal performance subsystems that always directly connect to the internal environment, and frequently with the external environment. These subsystems differ

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