Monitoring of process performance by means of financial indicators

• Main Authors: Renáta Turisová, Michal Tkáč, Miloš Pachta
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2018-09-01
• Series: Problems and Perspectives in Management
• Subjects: margin velocity; process performance; product; return on total assets
• Online Access: https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/10934/PPM_2018_03_Turisova.pdf
• ISSN: 1727-7051; 1810-5467

The paper deals with problematic nature of measuring of process performance. It includes a designed procedure of process performance monitoring, evaluation of logistic processes quality, and also measuring of the impact of marketing activities on the profitability of process output, i.e. a product, by means of appropriate indicator.There are several performance indicators that companies use to monitor the performance of their processes and business strategies with respect to their objectives. To monitor these indicators, enterprises rely on dashboards that present one or more indicators along with contextual information to help decision makers identify deviations and their root causes. Associated benefits related to the process performance measurement system can be seen, for example, in better decision-making, flexible human resource management and process management structures. By using rolled steel sheets in a large metallurgical plant as an example, there will be shown how the performance of the rolling process can be improved by monitoring the tangible financial indicator. Subsequently, the experience was from case management companies presented to further incorporate a practical view of implementation and related issues. Finally, the reasons why the organization prefers the observed indicator during implementation of the process performance of measurement system is explored in order to understand the causes and consequences.