Process based performance measurement (Perspective Management)
In this, a purview or overall view of the logistical system is evaluated. Activity-based measures and process-based measures are compared. Let us consider the following example.
There are clerical staffs in an organization that are deputed to take orders from customers. Their activity is measured in terms of the number of orders they take. in case the number of order taken is high, it is deduced that the efficiency is high. But it could happen that the performance may be poor in terms of overall satisfaction of the customers. For this reason it very necessary that some performance measures have to be taken to evaluate overall process performance.
Therefore process measures consider the customer satisfaction, which is delivered by the entire supply chain. They examine and analyze the total performance-cycle time or the total service quality. Both of which measures the collective effectiveness of all activities required to satisfy the customers. Today, process measures are given more importance by firms in relation to activity-based measures.
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