Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Performance Measurement Program
A performance measurement program goes beyond just having performance metrics in place. Many companies do not realize the full benefit of their performance metrics because they often do not have all of the necessary elements in place that support their metrics. (Modified from Council of Supply Chain Management Professionals glossary of terms)
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Performance Specification
A specification setting forth performance requirements determined necessary for the item involved to both perform and last as required. See also OLAs and SLAs.
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Performance standards
Represents the level at which the parties expect the provider to perform the services, are broader than service levels and relate to costs.
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Performance Measures
Indicators of the work performed and the results achieved in an activity, process, or organizational unit. Performance measures can be financial, operational or relational. Performance measures enable periodic comparisons and benchmarking. Performance measures can measure activities, outputs or outcomes.
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Performance Work Statement (PWS)
A document that resides between a statement of objectives and a statement of work in terms of specificity. The buyer defines the expected results in the statement of objectives and solicits solutions from suppliers. The supplier then develops a performance work statement. A PWS still expects the supplier to drive continuous improvement/transformation/innovation to fulfill the company's statement of objectives.
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Performance management framework
A series of standards and targets that are to be achieved by the supplier, definitions of how performance against those standards will be measured and actions expected to be taken on the basis of the measurement results
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Performance-Based Contract/Agreement
A results-oriented contracting method that focuses on the outputs, quality, or outcomes that may tie at least a portion of a contractor's payment, contract extensions, or contract renewals to the achievement of specific, measurable performance standards and requirements.
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Perpetual-Inventory System
An inventory control record system, which requires immediate recording of transactions (receipts and withdrawals) for each item carried in inventory. If posted accurately, the inventory records should be up to date and agree with the actual stock count in the warehouse.
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Personal protective equipment (PPE)
Equipment such as a hard hat, work boots or a high-visibility jacket
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