An overview of frequently used performance measures

Stefan Tangen (Stefan Tangen is a PhD Student, Department of Production Engineering, The Royal Institute of Technology, Stockholm, Sweden.)

Work Study

ISSN: 0043-8022

Publication date: 1 December 2003


Performance measures are often used to increase the competitiveness and profitability of manufacturing companies through the support and encouragement of productivity improvements. This paper reviews the most frequently used performance measures to identify their strengths and weaknesses and the situations in which they are most appropriately deployed. The performance measures under review are compared in terms of how easily they are derived from strategic objectives, how easy they are to understand and whether they help form a long‐term view of performance. Suggests that it is important to select performance measures to match the situation in which they are to be used; more importantly, it is necessary to combine various types of performance measure to provide a fair complete and balanced view of a company or the operations under evaluation.



Tangen, S. (2003), "An overview of frequently used performance measures", Work Study, Vol. 52 No. 7, pp. 347-354.

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Copyright © 2003, MCB UP Limited

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