Performance Measurement Systems: Models, Characteristics and Measures

In spite of the increasing importance of performance measurement in operations management, few large scale empirical studies concern models, characteristics and indicators of the performance measurement systems (PMSs). Results of a survey conducted in 115 medium and large sized Italian manufacturing firms operating in three main industries are presented. Principal components analysis was carried out with the aim of describing the dimensions and the actual state of these systems. The majority of PMS models are of the ``frustum'' type: the traditional cost performances (the production costs and the productivity) are kept separate from the more innovative non-cost measures (quality, time and flexibility). To make the most of the potentialities of these systems, formalisation and integration with other firm systems are of prime importance, while greater space should be given to the consideration of human resources.