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Book part
Publication date: 8 April 2005

Petri Suomala

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance

Abstract

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

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Article
Publication date: 28 October 2013

Kohei Arai, Hirotsugu Kitada and Keisuke Oura

This study aims to investigate the relative weight of financial and non-financial performance measures used to evaluate production managers (such as shop floor managers or…

Abstract

Purpose

This study aims to investigate the relative weight of financial and non-financial performance measures used to evaluate production managers (such as shop floor managers or foremen) in a modern manufacturing setting.

Design/methodology/approach

Using survey data from Japanese factories, the paper examines the association between the choice of profit, cost, and non-financial performance measures with two characteristics of manufacturing systems: interdependence and multi-tasking.

Findings

The results indicate that interdependence has a significant and positive association with the importance of profit information, while multi-tasking is associated negatively with the importance of profit information, and positively with non-financial information for performance evaluation.

Originality/value

In recent years, a significant shift has been observed in Japanese production management with many companies now focusing on profit information instead of cost information. For example, the past studies show that large Japanese manufacturing companies are now using micro-profit centres and include profit information when evaluating factories. However, little empirical evidence is available on performance measurement at the shop floor foreman level, and even less is known about the importance of profit information in the evaluation of these lower level managers.

Details

Journal of Accounting & Organizational Change, vol. 9 no. 4
Type: Research Article
ISSN: 1832-5912

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Article
Publication date: 6 April 2010

Ad Straub, Marnix Koopman and Henk‐Jan van Mossel

This paper intends to ascertain a general guideline for performance measurement and management by social enterprises, combining public and private tasks.

Abstract

Purpose

This paper intends to ascertain a general guideline for performance measurement and management by social enterprises, combining public and private tasks.

Design/methodology/approach

The conceptual systems approach is used as a framework. Maintenance service delivery by Dutch housing associations is used as a case study to show how the conceptual systems approach to performance measurement can be helpful to address the managerial problems of social enterprises, the actors involved and the possible consequences of new policies and interventions.

Findings

The system approach to performance measurement has the tools to bring transparency to the aims and means of the various participants in the production process of social enterprises having complex aims and tasks both in the market and in the public domain. The identification of key performance indicators, as well as the input, throughput, output and outcome indicators, ensures the effectiveness and efficiency of the internal business process and also covers the accountability to external stakeholders.

Research limitations/implications

The conceptual systems approach to performance measurement was tested by Dutch housing associations. Researchers are encouraged to test the conceptual systems approach to performance measurement in other social enterprises.

Practical implications

The complexity of the public housing sector and generally social enterprises needs transparent performance measurement. This complexity – due to dynamics in the surroundings – also causes measurement problems. When deciding on performance indicators it is essential to gain a clear idea of the manageable and unmanageable dynamics and to adjust the performance measurement system accordingly.

Originality/value

The importance of performance measurement by social enterprises is growing. The paper shows how the conceptual systems approach can still be very helpful to identify performance indicators combining tasks in the market and public domain.

Details

Facilities, vol. 28 no. 5/6
Type: Research Article
ISSN: 0263-2772

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Article
Publication date: 1 February 1996

A. De Toni and S. Tonchia

Shows how the pursuit of excellence and the organizational change required by lean production leads to a management‐by‐process organization, and that management by process…

Abstract

Shows how the pursuit of excellence and the organizational change required by lean production leads to a management‐by‐process organization, and that management by process influences the performance measurement system (PMS). Uses Zanussi‐Electrolux ‐ the biggest European producer of domestic appliances ‐ as a case study example. Provides a detailed analysis of the organizational change and its effects on performance measurement.

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International Journal of Operations & Production Management, vol. 16 no. 2
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 March 2000

J.S. Busby and A. Williamson

Notes limitations to measuring the performance of design activity in particular, and non‐production activities in general. First, validity and reliability in specific…

Abstract

Notes limitations to measuring the performance of design activity in particular, and non‐production activities in general. First, validity and reliability in specific measures are strongly negatively correlated, making it hard to achieve both. Second, outcome measures are jointly determined by engineering design and other activities to varying degrees, and this problem of shared outcomes is only partly reduced by measuring at higher levels of aggregation. Third, there is no definite stopping rule for engineering design activity, yet unambiguous outcome measures rely on the existence of such a rule. Fourth, outcomes attributable to engineering design can sometimes only be measured a long time after completion of the activity, making them ineffective for most managerial purposes. There are also considerable problems in properly accounting for environmental variables. However, the use of performance measures have some benefits, e.g. correcting wrong inferences among engineering managers. Results point to the appropriate use of performance measurement in engineering design for raising questions and detecting discrepancies in performance at aggregate levels. They suggest that using measurement is inappropriate for managerial control, for attributing results to engineers or the environment, and for concluding problem solving activities.

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International Journal of Operations & Production Management, vol. 20 no. 3
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 August 1997

Alberto De Toni, Guido Nassimbeni and Stefano Tonchia

Presents an original integrated production performance measurement system (IP2MS) based on a model able to examine simultaneously several production performances of…

Abstract

Presents an original integrated production performance measurement system (IP2MS) based on a model able to examine simultaneously several production performances of different operation centres of a firm. The need for an integrated examination of the performances is of crucial importance for today’s manufacturers in order to achieve a competitive advantage. Obtains a quantitative and homogeneous appraisal of the production performances; furthermore, identifies activities responsible for the major differences between actual and desired levels of performance. The proposed model has been empirically tested in some significant medium‐large enterprises of Northern Italy.

Details

Industrial Management & Data Systems, vol. 97 no. 5
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 12 March 2019

Andre Eduardo Staedele, Sandra Rolim Ensslin and Fernando Antônio Forcellini

The purpose of this paper is to focus on the analysis of the characteristics and gaps of a literature fragment from the international scientific publications on performance

Abstract

Purpose

The purpose of this paper is to focus on the analysis of the characteristics and gaps of a literature fragment from the international scientific publications on performance evaluation in lean production, aiming to generate new knowledge and suggestions for future scientific research.

Design/methodology/approach

The authors have adopted “ProKnow-C” methodology, a qualitative research approach that is used for literature selection, identification, analysis and reflection on the established characteristics.

Findings

From a bibliographic portfolio of 67 research works, 91 per cent of the works have individual metrics and 84 per cent have sets of metrics. Evaluating the focus of the performance measurement system, 34 per cent of works measure performance, 43 per cent compare performance and only 18 per cent assist in strategic planning. Evaluating the phases of the PMS life cycle, 87 per cent attend to the design, and 66 per cent attend to the activities of data collection, allow diagnosis, evaluate performance and communicate results. However, only 3 per cent of the studies analysed the use of PMS after its implementation and no research evidenced the review of metrics and objectives based on strategic planning.

Research limitations/implications

The search formula to capture the bibliographic portfolio (BP) was limited to the following terms: performance measurement, performance evaluation, performance assess*, performance appraisal, management, indicator*, critical factors, best practices, lean production, lean manufacturing and lean system. The BP was determined based on the limitations set by the research authors: articles published in English and Portuguese languages, from 2000 to 2018, in the Engineering Village, Scopus, EBSCO, Web of Science, ProQuest and Science Direct databases, which were freely available on the internet. Lastly, conceptual knowledge was used to select the articles, so there is a chance that unintentional losses could happen.

Practical implications

As practical implications for practitioners, the authors have identified that a PMS from an organisation that aims to become “lean” needs to be defined and revised considering its strategy, adjusting its set of metrics and targets to the internal and external challenges. As practical implications for researchers, opportunities have been identified to develop longitudinal studies in PMS utilisation and review to understand how the measurement system must evolve over time through changes in the internal and external environments of organisations.

Originality/value

This research adds value because its results allow researchers and practitioners to visualise the boundaries of the knowledge from the BP, about performance management in lean production, and what their gaps are in relation to the reference model of performance evaluation. This research is original because it was not observed in the literature review, a research that used the ProKnow-C methodology for analysis of the alignment and gaps between lean production and performance evaluation.

Details

Journal of Manufacturing Technology Management, vol. 30 no. 5
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 31 May 2013

Kwee Keong Choong

The purpose of this paper is to identify the fundamentals of a performance measurement system (PMS), in order to ascertain if they satisfy the measurement requirements of…

Abstract

Purpose

The purpose of this paper is to identify the fundamentals of a performance measurement system (PMS), in order to ascertain if they satisfy the measurement requirements of business process management (BPM) by means of a systematic review of the literature.

Design/methodology/approach

The paper uses meta‐analysis to systematically review and examine existing BPM and PMS from the business, non‐business and public sectors. A specific methodology using categorization concept was used to select the appropriate articles. In total, 42 relevant articles are selected and later analyzed. A subsequent content analysis of the information obtained is applied to identify the gaps in the current literature.

Findings

The growing interest in PMS has produced an extraordinarily large numbers of papers on the topic. This paper found that, by and large, the PMS as advocated by various authors for over 20 years (since 1990) failed to fulfill the measurement requirements of BPM. This is alarming, considering that past critics of PMS have indicated that the weaknesses of PMS in relation to BPM applied only in isolated or specific situations such as information technology (IT). These findings dispel the notion that a PMS is a prerequisite to the introduction of an effective BP in organizations.

Practical implications

This paper has identified the gaps (weaknesses) of current PMS in meeting the measurement requirements of BPM. This paper proposes a theoretical integrated framework which encompasses a management system, that combines with a measurement system and business processes, and which can be implemented using the popular value‐chain methodology to measure and compare performance within BP organizations.

Originality/value

The results presented contribute towards providing an updated overview of the current state of research into PMS and its relevance to BPM, in order to identify existing research gaps, issues and concerns upon which ongoing and future research efforts on this topic can be built.

Details

Business Process Management Journal, vol. 19 no. 3
Type: Research Article
ISSN: 1463-7154

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Article
Publication date: 5 February 2018

Aki Jääskeläinen and Otto Thitz

The purpose of this paper is to clarify the prerequisites for performance measurement supporting purchaser-supplier relationships and value co-creation. It also explains…

Abstract

Purpose

The purpose of this paper is to clarify the prerequisites for performance measurement supporting purchaser-supplier relationships and value co-creation. It also explains the causes for the limited use of collaborative measurement.

Design/methodology/approach

Four case companies representing different contextual settings are studied. The primary source of empirical material is an interview study addressed to 24 interviewees. The empirical data are analyzed according to the constructs created as a result of the literature review.

Findings

The results reveal that prevailing performance measurement practices represent a more transactional than relationship-oriented approach to purchaser-supplier collaboration. The technical prerequisites for collaborative performance measurement are mostly not fulfilled, inhibiting the use of performance measurement in a collaborative manner. It is proposed that the differentiation between project and process production types has implications on the importance of collaborative performance measurement.

Research limitations/implications

The paper illustrates the desirable characteristics of performance measurement supporting collaboration. It also presents an application of collaborative performance measurement in a single case context. The research reveals the need to develop non-financial performance measures further in order to facilitate the more proactive use of performance measurement supporting true value co-creation between purchaser and supplier companies.

Originality/value

The empirical research on the topic of performance measurement in purchasing and supply management (PSM) is often limited to intra-organizational measurement and highlights transactional approach to collaboration between parties, although PSM research has otherwise acknowledged the importance of value creation and relationships between organizations.

Details

Benchmarking: An International Journal, vol. 25 no. 1
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 9 February 2010

Jussi Lehtinen and Tuomas Ahola

The purpose of this paper is to assess whether performance measurement literature and as a result, practical applications, models and frameworks drawing from this…

Abstract

Purpose

The purpose of this paper is to assess whether performance measurement literature and as a result, practical applications, models and frameworks drawing from this literature are compatible with the central features of extended enterprises.

Design/methodology/approach

The paper is based on a bibliometric study that is supplemented with an empirical case study.

Findings

The results of this paper indicate that literature on performance measurement and literature on extended enterprises are only partially compatible. The common underlying reasons for measuring performance are highly valid also in the context of an extended enterprise. However, performance measurement processes and practices utilized within firms are to a considerable degree incompatible with central characteristics of extended enterprises. A highly apparent conflict between the two streams of literature is related to choosing individual performance measures (i.e. the question of what to measure). Performance measurement literature emphasizes intra‐organizational measures which conflicts starkly with the emphasis of inter‐organizational collaboration dominant in literature addressing extended enterprises.

Research limitations/implications

The sample consists of articles published in many leading academic journals. The primary implication of this paper is that the importance of inter‐organizational relations and collaboration, and the lack of a central decision‐making authority should be taken into consideration when designing and implementing performance measurement systems for extended enterprises.

Practical implications

Managers implementing performance measurement systems may tend to adopt solutions recommended by industry actors and dominant performance measurement literature. As increasingly many firms operate as a part of an extended enterprise, the adoption of these off‐the‐shelf solutions poses considerable risks.

Originality/value

The main contribution of this paper is that it systematically assesses the compatibility of performance measurement and extended enterprise literature by means of a bibliometric analysis. In addition, the paper identifies key contributions from both streams of literature. An empirical case representing the shipbuilding industry is carried out to validate obtained findings.

Details

International Journal of Operations & Production Management, vol. 30 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

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