Performance evaluation of processes with asymmetric tolerances in the presence of gauge measurement errors

2016 ◽  
Vol 45 (10) ◽  
pp. 3011-3026 ◽  
Author(s):  
Dwi Yuli Rakhmawati ◽  
Chien-Wei Wu ◽  
Chao-Lung Yang
Keyword(s):  
Performance Evaluation ◽  
Measurement Errors ◽  
Asymmetric Tolerances ◽  
Gauge Measurement

Aggregation and Measurement Errors in Performance Evaluation

2004 ◽  
Vol 16 (1) ◽  
pp. 93-105 ◽  
Author(s):  
Anil Arya ◽  
John C. Fellingham ◽  
Douglas A. Schroeder
Keyword(s):  
Performance Evaluation ◽  
Sample Size ◽  
Measurement Errors ◽  
Individual Activity ◽  
Production Errors

In this paper, we present a sequential production setting wherein employing aggregate measures for performance evaluation prove superior to those constructed specifically to measure individual activity. In our setting, unverifiable inputs translate into verifiable measures via two types of shocks: the first is production errors that cause outputs to deviate from inputs, and the second is measurement errors that result in outputs themselves being stated imprecisely. Agents are evaluated using either individual or aggregate measures, where the former measures the incremental output added by each link and the latter measures the cumulative output produced at the end of each stage. Aggregate measures can be preferred to individual measures because they increase the sample size available to infer upstream agents' unobservable acts and because they serve as an avenue for measurement errors to cancel.

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