| Article ID: | iaor1992870 |
| Country: | Netherlands |
| Volume: | 24 |
| Issue: | 1/2 |
| Start Page Number: | 165 |
| End Page Number: | 173 |
| Publication Date: | Nov 1991 |
| Journal: | International Journal of Production Economics |
| Authors: | Parkan Celik |
| Keywords: | measurement |
The paper defines a production unit (PU) as a purposeful system that converts resources (inputs) into goods and/or services (outputs). In the manufacturing and service sectors of an economy, there are many different types of PUs ranging in size from individuals to large organizations. A PU’s overall competitiveness depends very much on its operational performance, that is its efficiency with which it produces goods and services. For operational performance control, the development of a reliable measurement system is essential. The objective of the present paper is to develop a procedure to calculate relative operational performance ratings of a set of PUs. The criteria that is set for the ratings include intuitive appeal, computational ease, and ability to reflect different managerial perspectives and priorities. The application of the procedure is demonstrated using a data set from the recent literature, which involves twelve input and two output categories in a manufacturing setting.