Systems

Performance Management Architecture

A performance management system implemented at operational level is based on concepts of total quality management, industrial engineering, activity accounting and other functional strategies in order to assure the desired tactical outputs.

 

The system aims to provide the right information at the right time, switch from scorekeeper to coach, and focus on what counts the most for each operation. Interpreting the financial and nonfinancial signals of the business operations and responding to them even is a management responsibility for operational level (Neely et Al. 2007).

 

Total Quality Management (TQM)

Represents a management concept aiming to reduce the errors produced during the manufacturing, production or service process, to increase customer satisfaction and to assure optimization within the supply chain management.

 

Plan-Do-Check-Act (PDCA) 

Also known as the Deming Cycle (Value Based Management.net, 2010), PDCA is an operational tools that describes the overall stages of improvement activity and initiatives. It is a continuous quality improvement model consisting of a logical sequence of four repetitive steps:  

  •          Plan - Establishing the objectives and processes necessary to deliver results in accordance with the expected output.
  •          Do - The implementation of new processes.
  •          Check - Measuring the new processes and analyzing the comparative results.
  •          Act – implement initiatives accordingly to the necessary changes for improvement.

Lean Six Sigma

Is a relatively well-known approach for achieving operational excellence that can be used as a system to manage performance at operational level, through clear tactical strategies and measurement.  It seeks to generate quality improvement of process outputs by identifying the causes of defects and reaching a minimum level of variability in manufacturing and business processes (Byrne, Lubowe & Blitz, 2006).

 

ISO Certifications

ISO 9000 is an internationally recognized standard of quality, including guidelines to accomplish the ISO 9000 standard, and organizations can be optionally audited to earn this certification. In order to implement this standard, specific methods and processes need to be in place, creating a clear system for managing and measuring operational quality.

 

Business Process Reengineering

Represents a system through which processes and workflows are analysed and designed within the organisation. It aims to increase process and operation’s performance by radically re-designing the organization's structures and processes.

 

Benchmarking

Represents a practice of using standard measurements in a service or industry for comparison to other organisations in order to gain perspective upon performance. For example, there are emerging standard benchmarks for universities, hospitals, etc.

 

However, benchmarking is not a performance management system, more a method used for performance comparisons, that can utterly be used in more overall performance management processes and system. Benchmarking is often perceived as a quality initiative.

 

References:

Operational : Architecture

 

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