Question: Non - financial performance measures focus on how well operations are running beyond just dollars and cents. These include how long it takes to manufacture
Nonfinancial performance measures focus on how well operations are running beyond just dollars and cents. These include how long it takes to manufacture a product from start to finish, how many units are produced in a certain amount of time, how quickly machines can be set up and the number of defective units that are found. On the other hand, financial performance measures deal directly with costs like how much is spent on rework, placing orders, running out of stock, and holding inventory. An enterprise resource planning ERP system supports these efforts by using one central database that gives access to realtime information for managers, suppliers, and customers. This setup helps different parts of the business stay connected and makes it easier to quickly adjust manufacturing and distribution plans when there are changes in demand or supply.
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