Financial performance measurement: not a total solution

Describes a framework for analysis which is capable of measuring the value‐adding capability of the entire manufacturing chain. This provides a means of benchmarking organizational performance irrespective of market‐related profit margin. The method of analysis provides: a measure of existing value‐adding capability; guidance for investment, constraint removal and measurement of the new state and a measure of the untapped potential available in an organization and thus benchmarking against world‐class standards. The methods could also be used to aid company share evaluation since the relative improvement potential can be measured as intercompany comparisons become available.