Functions of Performance Measurement System:

Every manufacturer's mission is to purchase raw materials from vendors, transform them in a factory into needed products and deliver these values-added items to customers. Most of them carry out this mission poorly and make losses. The prime cause is that they ignore competition and effectiveness. They routinely and stock pile them in the inventory. To show competitive status of any production system following are the functions of a performance measurement system.

• Make a balance among financial with non-financial measures.
• Develop the decision making capability.
• Link daily operations to strategic objectives.
• Motivate workers and managers.
• Recognize and eliminate waste.
• Measure what is necessary to customers.
• Accelerate organisational learning.