Performance Measurement and Management for Engineers introduces key concepts in finance, accounting, and management to project managers who have engineering backgrounds. It focuses these basic concepts on issues of measuring and managing enterprise value. Thus, after defining enterprise value, the book begins by explaining the ways and means of measurement. It then takes up financial measurement, describing and analyzing the typologies of financial indicators while illustrating their advantages and disadvantages. After focusing on measuring enterprise value, the second section takes up managing that value. Like the first, it pursues a double view: using indicators for internal control while employing them to analyze other companies. If engineering project managers possess a source of quantitative and qualitative information about business management, Performance Measurement and Management for Engineers will help them increase their contributions to the business.
Key Features
- Explains how main performance indicators are related to the value of the company
- Reveals how to assess the financial needs of companies in relation to their financial goals and mechanisms (e.g., equity, debt, and hybrid)
- Describes key information and indicators for assessing the ability of enterprises to create value across time
- Indicates the profitability sources of different business units
- Acknowledgments
- Chapter 1. Introduction
- 1.1 What is Enterprise Value?
- 1.2 How to Manage Enterprise Value: Enlarging the Performance Measurement Toolkit
- 1.3 Why to Manage Enterprise Value: A Multistakeholder Perspective
- 1.4 Concluding Remarks
- Chapter 2. Value-Based Management Indicators
- 2.1 Value-Based Indicators
- Chapter 3. Accounting-Based Measures
- 3.1 Traditional Accounting Ratios: ROE and ROI
- 3.2 Residual Income and EVA
- Chapter 4. Value Drivers
- 4.1 Nonfinancial Performance Indicators
- 4.2 Nonfinancial Resource State Indicators
- 4.3 Characteristics of Nonfinancial Performance and Resource Indicators
- 4.4 Risk Drivers: Key Risk Indicators
- Chapter 5. Scorecards
- 5.1 Balanced Scorecard
- Chapter 6. Target Setting: Budgeting and Risk Management
- 6.1 Budgeting
- 6.2 Enterprise-Wide Risk Management
- 6.3 Budgeting and ERM: Organizational Configurations
- Chapter 7. Long- and Short-Term Decision Making
- 7.1 Investment Appraisal: Long-Term Decisions
- 7.2 Short-Term Decision Making
- Chapter 8. Performance Control for Organizational Units
- 8.1 Boundaries and Level of Analysis
- 8.2 Measuring Performances at BU Level
- 8.3 Measuring Performances of Responsibility Centers
- 8.4 Measuring Performance Beyond Organizational Boundaries: Supply Chain and Network Accounting
- Chapter 9. Performance Control for Projects
- 9.1 Earned Value Management
- 9.2 Synthetic Performance Indicators for Project Advancement
- 9.3 Percentage of Completeness and the Calculation of the Earned Value (BCWP)
- 9.4 Estimate at Completion
- 9.5 Completing Cost/Schedule Performance Indexes (TCPI/TSPI)
- Chapter 10. Forms and Techniques for Financing
- 10.1 Markets and Financial Needs Coverage
- 10.2 Forms and Techniques for Short-Term Financing
- 10.3 Forms and Techniques for Long-Term Financing
- Annexure 1: Consolidated Financial Statement
- A1.1 The Concept of a “Group”
- A1.2 Theories of Consolidation
- A1.3 Methods of Consolidation
- References
- DePamphilis. Mergers, Acquisitions, and Other Restructuring Activities, 7th ed. 9780123854872. October 2013. 768 pp., $99.95.
- Greenbaum & Thakor. Contemporary Financial Intermediation, 2nd ed. 9780122990533. March 2007. 672 pp., $109.
- Wehn et al., eds. Rethinking Valuation and Pricing Models: Lessons Learned from the Crisis and Future Challenges. 9780124158757. November 2012. 52 pp., $99.95.
Upper-division undergraduates and graduate-level science and engineering students worldwide.
