Effective Measurement of Business Performance

Article

Stein, Philip   (1998, ASQ)   P.G. Stein Consultants, Pennington, NJ

Annual Quality Congress, Philadelphia, PA    Vol. 52    No. 0
QICID: 10713    May 1998    pp. 414-417
List $10.00
Member $5.00

FOR A LIMITED TIME, ACCESS TO THIS CONTENT IS FREE!
You will need to be signed in.
New to ASQ? Register here.

Article Abstract

Measurement science or metrology has tools to support performance measurement in business. These tools can help businesses cover both financial and nonfinancial measurement. A basic tool is to understand natural variation and the subsequent interpretation of data. It also is important to know the qualities of good measurement: definition of purpose; determination of performance indicators; identification of the variable or unit being measured; an operational definition of the measurement process; and a plan for data analysis. Metrology and statistics provide improvements for inadequate aggregation methods typically used in business. The problem is that a weighted sum indicator might hide a significant change in one of its components. To prevent being misled by aggregated data, a warning indicator is needed to identify unusual patterns in individual data items. Another tool is measurement assurance, which assesses how well a measurement system meets its specifications for precision and accuracy.

Keywords

Measurement and control,Metrics,Metrology,Statistics


Browse QIC Articles Chronologically:     Previous Article     Next Article

New Search

Featured advertisers





ASQ is a global community of people passionate about quality, who use the tools, their ideas and expertise to make our world work better. ASQ: The Global Voice of Quality.