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mentioned three elements: particular performance elements, performance instruments/
tools and performance management process (see Figure 3.5).
Figure 3.5 Guidelines for the PMMS
3.2.1 Guidelines for particular performance elements
Under the heading of guidelines for a single performance element, criteria can be
grouped which are aimed to evaluate if one specific performance element is appropriately
defined and is able to function correctly. As the single performance element forms the
basis for the PMMS, it is necessary to design each performance element adequately.
Validity, unambiguity and adequacy
This criterion is the basis for every performance element. It means that the
performance element must be able to measure the focal activity correctly and thus be
independent from external influence. Synonyms can be unambiguity or adequacy. This
criterion becomes more important the more abstract the performance element is. For
example, the quality of collaboration between supply chain partners is more abstract
than the logistics cost and thus it is more important to check the validity for the first.
A good example for a valid performance element is the total lead time to measure
the delivery flexibility or reactiveness of a supply chain. A negative example of this is
to measure the satisfaction of the workforce by the salary they get because satisfaction
of the workforce can also be influenced by other factors such as work environment or
quality of leadership.
But even for seemingly validperformance elementsmistakes in the operationalisation
of a performance element can lead to a negative validity. This applies, for example, to the
case of delivery reliability when in a just-in-time-environment an order is defined as in
time when the order arrives five days earlier or later than expected. Here the indicator
will lead to invalid results (even if measured correctly) as it does not accurately reveal
unreliable deliveries. In just-in-time-environment deliveries should be measured with an
allowed deviation of several minutes.
At the same time validity also includes that the indicator should have an adequate
level of detail [10]. In the case of the lead time, this means that several steps within
this lead time (order processing, replenishment, production and delivery) should be
recorded in order to get a better understanding of possible problems.