Classification of Performance Dimensions
A dimension is a measurable extent of any kind. It is usually measured in terms of various extends like shape, size, quality and quantity.
The performance dimensions can be classified into following:
- Quantity - which is the primary dimension of performance.
- Quality - which is the secondary dimension of performance.
Image below depicts this classification of performance dimensions.
Image credits © Prof. Mudit Katyani.
1. Quantity is Primary Dimension of Performance
Quantity of output is the primary dimension of performance.
Examples of “How primary dimension (Quantity) is measured?”:
- Manufacturing unit : A primary dimension for a manufacturing unit is the quantity of output produced within a given time period. Higher the output more is the efficiency of workers.
- Company : A primary dimension of quantity can also be applied to a measure company’s efficiency. For example, a car manufacturing company may fix the performance dimension of producing at least 10 cars in a day. If the output is more than 10 cars, then the company is considered to be operating efficiently.
- Service sector : In a service sector, it is difficult to fix such a standard because here it is hard to measure performance in terms of quantity. However, it can be expressed as the number of customers served. For example, a hotel can measure its performance by finding out how many customers it serves daily.
2. Quality is Secondary Dimension of Performance
Quality of output is the secondary dimension of performance.
If most of the output is made as per the quality standards, then the quality of output is good.
Quality standards are expressed as a percentage of units that are allowed as defective.
Companies that want a Six Sigma standard must see that not even three units in a million are defective.
With competition increasing day by day, companies are giving a lot of importance to the quality of the product. By giving warranty/guarantee for their products, companies are using quality as a sales promotion tool.
Companies must use modern techniques to improve their product quality. They must provide better value for the consumer's money by focusing on the quality of their products.