| balanced scorecard | A performance measurement system that combines financial and nonfinancial measures of business performance.
|
 |
|
|
| economic value added (EVA) | A productivity measure that indicates whether or not a business is creating wealth from its capital. It is equal to the after-tax operating profit minus the annual cost of capital.
|
|
|
|
| efficiency | The ratio of actual output to standard output.
|
|
|
|
| inventory turns | A measure of inventory productivity computed by dividing sales by the average value of inventory.
|
|
|
|
| machine utilization | A productivity measure for machines that is equal to actual running time divided by time available.
|
|
|
|
| net present value (NPV) | The difference between the market value of a product or service and the cost of creating it.
|
|
|
|
| productivity | A measure of how well inputs are used by a business, typically the ratio of an output to the input of interest.
|
|
|
|
| profit margin | Profit generated per dollar of sales.
|
|
|
|
| return on assets (ROA) | Profit per dollar of assets.
|
|
|
|
| return on equity (ROE) | Profit per dollar of equity.
|
|
|
|
| safety stock | Additional inventory used to help meet demand uncertainty.
|
|
|
|
| service level | The percent of orders satisfied from existing inventory.
|
|
|
|
| stockout | An instance when demand cannot be satisfied by existing inventory.
|