Research On "puma" Appraise Model Of Siemens Group

In the period of the economic transition of China,the Chinese enterprises are facing favorable market opportunities and fierce competition environment.In business operation,enterprises are always facing the challenge of two major scopes.One is how to eliminate the inconsequential factors in the performance appraisal to make an objective evaluation on the business performance and financial performance of its subsidiary companies,and guide the subsidiaries to work in the right direction through the internal performance appraisal indicators,establish the coincident behavior with the enterprise culture.Secondly,enterprises are also bothered by selection a tool in management to help them to increase sales,improve efficiency,reduce costs,optimize assets and maintain competitiveness.Enterprises have to design a rational performance appraisal system based on the modern performance appraisal theory to solve above two problems.On the one hand,the appraisal system should evaluate the performance of the enterprise and the management capability objectively;on the other hand,it should lead to effective implementation of lean production and lean management which help the enterprise to move towards business excellence.Siemens is trying to use a key performance indicator of "PUMA" to solve the above two problems which provide a new theory of performance appraisal.According to the research on "PUMA" model of Siemens group and Siemens Chengdu Subsidiary,this paper introduced the concept,theoretical basis,and detailed indicator of "PUMA" in Siemens,analyzed the difference between the traditional performance appraisal system and "PUMA",and took Siemens Chengdu Subsidiary as an example to introduce the design scheme and achievement in the process of implementation.The study shows:Financial analysis methods,financial management theory and the theory of operational excellence are integrated in Siemens "PUMA" evaluation model to establish a unique and effective performance appraisal and financial management model."PUMA" is the key item of Siemens performance appraisal system and also an important management tool to promote revenue growth,increased profit and asset optimization."PUMA" is used to identifying,recording,monitoring,reporting and analyzing the financial impact on sales,cost and asset which lead by improvement projects initiated by Siemens internal subsidiaries.It focuses on financial performance optimization caused by conscious improvement projects initiated by subsidiaries in operation.It is an efficiency performance appraisal and financial management model with advanced theories of management."PUMA" model utilize the factor analysis method to eliminate the financial impact lead by macroeconomic factors,exchange rate factors,one-time factors,and focus on real drivers of enterprise performance – "Kaizen" in performance appraisal,which objectively reflects the management capability and the essence of enterprise performance."PUMA" optimized the shortage of traditional financial indicators such as not-accurate,short-term,belated.It provides ability for enterprise owners and operators to appraise the operation performance in way of objective.As a key performance indicator of Siemens,"PUMA" promoted the lean production and lean management of the company,strengthen the company's efficiency and cost reduction.It is not only a reliable tool for Siemens to achieve its strategic target of operational excellence and outstanding performance,but also a guarantee for long-term stable development and value creation of Siemens.Through the investigation and research of this paper,it is looking forward to that Chinese enterprise would be enlightened in business performance appraisal and financial analysis,and wish it is also a referential train of thought and method for Chinese enterprise to implement the lean production,and optimize financial management.