Physical Measure
A physical measure can measure the quantity of a variable with unchanged quality. Using a physical measure provides that the quality of the measurement object has been specified and the quality remains homogeneous. If the presumed unchanged quality is not realized, the measurement gives results which are hard to interpret. In this case, the results are affected by changes in both quantity and quality but in which proportion is unknown. Values of the objects being measured are by no means related to the physical measures, hence, changes in prices do not affect the measurement results. Normally it is not possible to combine physical measures. They are best suited for narrow-focused measurements with neither quality nor value alterations. Therefore, physical measures are best for measuring the real process, and this is why they are used a lot as tools of operative management. Typical ratios in a real process are capacity, efficiencies, lead times, loads, faults, product and process characteristics, etc.
Read more about this topic: Measurement In Economics
Famous quotes containing the words physical and/or measure:
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