Definition
Measures of Performance (MOPs) are the quantifiable metrics used to evaluate the effectiveness and efficiency of a system. In simulation, they are the dependent variables (responses) measured during production runs.
Why It Matters
Choosing the wrong measures of performance leads to ‘gaming the system’ and the optimization of useless metrics; in high-stakes environments, selecting high-signal KPIs is the only way to ensure the organization is actually moving toward its goals.
Core Concepts
- Throughput: The total number of entities completed per unit of time.
- Cycle Time: The total time an entity spends in the system (Wait Time + Service Time).
- Utilization: The percentage of time a resource is Busy (as opposed to Idle or Failed).
- Queue Length: The number of entities waiting for service at any given time.
- Work in Progress (WIP): The total number of entities currently inside the system boundaries.
- Financial MOPs: Cost per unit, revenue generated, and return on investment (ROI).