Performance Measurement in Apparel Manufacturing

Book excerpt: Performance measurement is a process for collecting and reporting information regarding the performance of an individual, group or organisations. The fundamental purpose behind this measure is to improve performance. Key Performance Indicators, often abbreviated as KPIs, help an organisation define and measure progress towards organisational goals. These KPIs are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organisation. By using KPIs, a company can establish baseline figures against a number of important areas. They can be considered like a health check on a company or a diagnosis as to where a company can improve its performance. Different KPIs are there for different fields of operations such as merchandising, quality, production planning, cutting room, human resources management and inventory management for enhancing both the operational and financial performances of a business. Each of these metrics have been explained in terms of their measurement formula, benchmarks wherever available, and elaborated with examples to ensure that they are correctly interpreted and applied.