## 2 Theoretical Background
### Qualitative Methods
The main components of the analysis are innovation, flexibility, maintenance of current relationships, and product offering. Performance measurement alignment techniques is assessed using three questions implementing the balanced scorecard (BSC). The method aims to assess the extent to which the various performance categories are crucial factors for the long-term success of companies. A six-point scale is used to measure the implementation of the Balanced Scorecard or measures of economic value. The approach, similar to some of its predecessors, lacks indicator comparison and frequency of review of adherence to critical success factors (CSF); there is also a non-negligible implementation complexity. Nevertheless, the method considers internal and external perspectives and features an indicator tree evaluation system. [PERSON] [8] proposes a framework for analyzing, evaluating and implementing industrial PMM within a company. The authors point out that performance measurement without any follow-up action or improvement is not beneficial in increasing production competitiveness. Therefore, reports are provided for any performance lagging behind standards. The reporting is based on the company's expert input and experience in managing its production. The industrial PMM is dynamic, and the authors in their work consider the regular revisiting of it based on the latest information and any environmental changes. It is emphasized that evaluations at the shop floor level could be more frequent than at the strategic level so that the company's response is timely. This study presents a special consideration regarding the recalculation frequency of the proposed method, which is presented as a dynamic frequency (i.e., one that allows revisiting as soon as the environment changes). However, the approach is not easy to implement, given its structure, and needs to go into detail to analyze the relationships between the indicators themselves. In the study proposed by [PERSON] [16], an inter-process communication system is presented that can drive continuous improvement by communicating process performance to those involved. An interpretation of the PDCA cycle is proposed as a direct communication standard between processes and process owners that enables integrated process-oriented communication. The steps of this communication standard are:  
1. Check or Commitment--In this phase, it is decided how the success of the value stream is measured. It consists of three sub-phases: 1. Examine the process at the Gemba (the place where the value is created); 2. Point out a direction for improvement. Continuous improvement is a common need. This is carried out by establishing process KPIs in the Hoshin Kanri process; 3. The current status of this KPI is measured. 2. Plan or process priority analysis--This step consists of three sub-steps: 1. Understand the current state of the process using a process mapping tool; 2. Analyzing the cost of the root cause source of variability; 3. Ask why. 3. Do or Act--One works with the process. The PO authorizes an action with the receiver to reduce internal process variability; 4. Repeat numbers 1 and 3 n times; 5. Act or standardize--This stage is where the anchoring and transformation from active teaching to organizational teaching takes place. After reaching a tree of indicators, the experience developed in the management process becomes a standard. At this stage, one aims to describe the value stream so that replicability can be enabled. Thanks to this system, one can arrive at a very special industrial PMM, namely the Hoshin Kanri Tree (HKT), which consists of a tree of indicators implemented through a series of steps starting with the mapping of the value stream and ending with the actual KPI model, passing through intermediate paths such as the KPI Heatmap and the creation of a non-hierarchical network. Subsequently, these indicators will be evaluated using red or green colored magnets to assess their status. The presented method can immediately be seen as easy to implement and, above all, dynamic.