Engineering Productivity Management and Performance Measurement

The term 'productivity management' is examined as it relates to engineering management. Productivity measurement in an engineering orgai nization is very difficult to accomplish and it can also have a negative impact. A preferred term is 'performance measurement' which more clearly describes the desired results. There are generally seven categories of performance measures: Effectiveness, efficiency, quality, productivity, quality of work life, profitability, and innovation. In an engineering organization, effectiveness, efficiency, quality, quality of work life, and innovation should receive the major attention. One specific type of performance measurement deals with tracking commitments made to the clients. A commitment management system that will bring top management's attention to how well the organization is meeting its commitments to clients each month is described.