Commensurability of performance metrics in production management

This chapter examines the commensurability condition, also known as the unit invariance property, of performance measurements in production economics or related areas. This notion is presented through efficiency and productivity measures. This property is crucial for practitioners to obtain robust and reliable performance metrics, enabling them to adopt appropriate management strategies in production management. To emphasize the significance of this property in production management, the chapter begins by presenting the key performance metrics commonly used in the field. It then explains the commensurability condition through the lens of these metrics. This discussion highlights the practical implications of this property in production management, particularly in scenarios where management strategies depend on accurate performance evaluation.