Measurement of performance & improving performance

Service Operations
Management

Measurement of Performance
and
Improving Performance

,Performance management is the process of
quantifying action, where
• measurement means the process of
quantification
• performance of the operation is assumed to
derive from actions taken by its
management

Performance is defined as the degree to
which an operation fulfils the five performance
objectives at any point in time, in order to
satisfy its customers.

, Performance Measures
The market’s needs and expectations of each
performance objective will vary.

The five performance measures are:
• Quality
– Level of customer complaints
– Customer satisfaction score
– Warranty claims
• Speed
– Order lead time
– Customer query time
– Frequency of delivery