This document outlines various frameworks for measuring organizational performance, including the Malcolm Baldrige National Quality Award, the Balanced Scorecard, Value Chain Model, and Service-Profit Chain Model. It discusses key aspects of each model such as financial, customer, innovation and learning perspectives for the Balanced Scorecard and how the Value Chain Model evaluates performance throughout the supplier network, processes, and customer segments. The document provides an overview of performance measurement approaches for both manufacturing and service-based organizations.

2. 1) Monitoring
2) Decision Making
3) Attention Focus
4) Compensation – income is not guaranteed but
dependent on performance
5) Implementing strategy

3.  Customer
 Product and service
 Financial and market
 Human resource
 Organizational effectiveness
 Governance and social responsibility
 Time

4.  Customer satisfaction and dissatisfaction
 Customer retention
 Customer complaints and warranty claims.
 Perceived value, loyalty, positive recommendation,
and customer relationship building

5.  Internal quality measurements
 Field performance of products
 Defect levels
 Data collected from customers or third parties.
 Customer surveys on product and service
performance

6.  Revenue
 Return on equity
 Return on investment
 Operating profit
 Pretax profit margin
 Asset utilization
 Earnings per share

7.  Employee satisfaction
 Training and development
 Work system performance and effectiveness
 Absenteeism
 Turnover

8.  Cycle times
 Production flexibility
 Lead times and setup times
 Time to market
 Delivery performance
 Cost efficiency
 Productivity

9.  Organizational liability
 Stakeholder trust
 Ethical behavior
 Regulatory/legal compliance
 Financial and ethics review results
 Community service
 Management stock purchase activity

10.  Time relates to two types of performance
measures:
 the speed of doing something (average) and
 the variability of the process.
 Processing time is the time it takes to perform
some task.
 Queue time is a fancy word for wait time—the
time spent waiting.

11. 1. Malcolm Baldrige National Quality Award
Framework
2. Balanced Scorecard
3. Value Chain Model
4. Service-Profit Chain Model

12.  The first two models provide more of a ―big
picture‖ of organizational performance.
 The last two provide more detailed frameworks
for operations managers.
 It is important to understand these big-picture
models because operations managers must
communicate with all functional areas.

13.  Organizations receive the awards in each of the
categories of manufacturing, small business,
service, nonprofit education, and health care.
 Primary purpose of the program is to provide a
framework for performance excellence through
self-assessment to understand an organization’s
strengths and weaknesses, thereby setting
priorities for improvement.

14.  Consists of four performance perspectives:
1) Financial
2) Customer
3) Innovation and Learning
4) Internal

15.  Evaluates performance throughout the value chain:
 synchronized network of processes including
suppliers and inputs,
 processes and associated resources,
 goods and service outputs and outcomes,
 customers and their market segments,
 synchronized information and feedback loops, and
 management of value chain.

17.  Most applicable to service environments.
 Model is based on linkages between internal and
external performance,
 defines the key performance measurements on
which service-based firms should focus.