Performance Measurement in Service and Manufacturing Industries

Performance
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Critically discussion that how performance measurement in service industries are different
from manufacturing by comparing KPI’s....................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Performance management can be defined as a process in which companies make sure that
their set of activities can help them to accomplish goals DeNisi & Murphy, (2017). This study
will show several different key performance indicators which are being used by service and
manufacturing industry.
MAIN BODY
Critically discussion that how performance measurement in service industries are different from
manufacturing by comparing KPI’s
Performance measurement: Performance management refers a process in which
employees and managers work together in order to plan, monitor and review employee’s work
objectives. It can also be said that it is a continuous process of planning and reviewing
performance of employees in order to make them know their actual position in the company.
With the help of key performance indicators, companies of manufacturing and service can
measure their performance.
Comparison of KPI’s in service Vs: Performance indicators are one of the main tool which
allows companies of service and manufacturing industry in measuring effectiveness of
performance Nawaz, Hussain & Khattak, (2018). It also makes them able to see that who are
hard working and have potential to improve productivity of an organization. Some key
performance indicators which can be used in manufacturing industry include:
Total quality management: TQM is one of the main tools or key performance indicator
which often being used by manufacturing companies. With the help of this tool, companies of
manufacturing industry can analyse quality of their products and management them accordingly.
This indicator can help them out in increasing productivity by managing continuous quality.
Capacity utilization: This tool or KPI is being used in production line in order to see that
how much capacity are being actually used and it shows that the higher the company use the
better its performance is. By maximizing expensive assets like equipments and building,
company can improve performance and manage sell by production centre Manufacturing KPI’s
to Improve Production Performance, (2020).
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