Evaluation of production effectiveness in garment companies through key performance indicators

Key Performance Indicators help an organisation to improve productivity and to evaluate its success. Improved productivity is an essential part of increasing the value-added services that companies can offer to clients and hence their competitiveness. By using Key Performance Indicators, a company can establish baseline figures against a number of important areas. They can be considered like a health check on a company or a diagnosis of where a company can improve its performance. The definition of what they are and how they are measured does not change often, but Key Performance Indicators may change as the organisation's goals change. In this paper we present and discuss the way to establish Key Performance Indicators to evaluate the production effectiveness of garment companies. The KPIs are being tested in several garment companies in Albania and actually implemented in 25 companies.