A framework of performance modelling for dynamic strategy

This paper offers a framework of performance modelling. This paper starts with the challenges in developing and implementing a Performance Measurement System (PMS) in a typical production and operational environment. It identifies the future operational environment and discusses the implications with the use of performance measurement system. It focuses on how PMS can be integrated with the existing operation to yield economic benefits. The performance modelling framework suggests the use of enterprise model to support a holistic measurement of performance. The key argument here is that every firm has a different production and operational configuration and its performance is dependent on that of suppliers or networked partners. It is necessary to identify the enterprise model before hand and use that model as the means to organise specific measurements into support operational decisions. In this way, the performance measurement can be much more relevant to the existing operations.