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In Performance Measurement for World Class Manufacturing author Brian H Maskell states that new performance measures are needed for world class manufacturers. This, he says, is because traditional management accounting is no longer relevant, customer standards are increasing, and new management methods require new measures. Maskell also believes that world class manufacturers may have different performance measures that have the same characteristics. These new performance measures, which directly relate to manufacturing strategy (primarily through the use of nonfinancial measures, variations among locations, and change over time) are easy to use, providing fast feedback to operators and managers, thereby actually assisting in improvement istead of simply monitoring it.
Author Brian H Maskell divides the key performance measures into six areas:
- Delivery performance and customer service
- Process time
- Production flexibility
- Quality
- Financially based measures
- Social issues
