Performance Specification

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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Performance specifications are specifications that describe the maximum or minimum performance level of an element or process. They're designed to give guidance to system designers, who have to balance the demands of time and budget with their system's design goals. Performance specifications are also referred to as deliverables or requirements.

There are many benefits to using performance specifications. When there is a discrepancy between the system's actual performance and the stated requirements, the system is said to be out of compliance with the specified performance goal. This leads to rework or a need to revise the system's architecture in order to bring it into congruence with the desired performance level. Performance specifications also play a role in cost control by reducing the risk of costly deviations from target.

Performance is an essential concept in most business activities. It can be defined as the total amount of energy expended in performing a specific action. For example, the maximum fuel consumption per vehicle, the average speed of the vehicle, and the life expectancy of the vehicle are all performance specifications. In the manufacturing and construction industries, performance specifications include performance data for material, equipment, processes, and systems.

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