Quantitative Models for Performance Measurement System

This paper describes works at the Centre for Strategic Manufacturing, University of Strathclyde on developing Quantitative Models for Performance Measurement Systems (QMPMS) using cognitive maps, cause and effect diagrams, tree diagrams, and the analytic hierarchy process. It describes how the technique can be used to identify factors affecting performance and their relationships, structure them hierarchically, quantify the effect of the factors on performance, and express them quantitatively. A simple example is used throughout the paper to explain how the concept of the model works. An application of the method to model `total production cost per unit' of a collaborator company is presented. Then taxonomy of performance measurement is outlined. The taxonomy, which is developed based on the QMPMS, can be used to prioritize performance measurement.