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Both types are necessary. Output measures keep score, while process measures drive improvement. Process and output measures fall within three categories. Quality measures the “goodness” of a product or service. Time measures the “goodness” of a process. Cost measures the economics of “goodness.” In each case, “goodness” is defined by the recipient: The customer (internal or external) determines whether or not quality is “good.” Management, the customer, or members of another process determines whether or not time is “good.” Management, customers and other stakeholders determine whether or
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