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Performance Measurrement - Essay Example
The increase trend towards globalisation and the accompanying competition that has characterised business since the 1980s has forced companies and business to re-evaluate their performances through quantifiable metrics. As a result of this, a new field of study has emerged which aims to identify the right number and type of performance measures, which is relevant to different organisations (Kagioglou et al, 2001)…
(1997), this trend has led to the creation of new philosophies in performance assessment, such as concurrent engineering/construction, lean production/construction and many others such as JIT, TQM, TPM etc.; and the construction industry has continually saw the adoption of these new principles and techniques to better improve the quality of construction projects
The major driving factor behind these new principles is the optimisation of an organisation's performance, internally and externally, to enable it compete favourably well within its market (Kagioglou et al, 2001). This is because performance measurement enables an organisation, construction organisation in this sense, to understand how decision making processes or practices led to success and failures in the past, and how that understanding can drive the organisation towards future improvements (Hatry, 1999).
The purpose of this essay, therefore, is to elaborate the set of performance measures that are vital to assess the finances, customer satisfaction and product management in the construction industry, and to identify the right time and application for these performance measurements. ...