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An objective-oriented and product-line-based manufacturing performance measurement

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  • Chen, Chee-Cheng

Abstract

Performance-measurement systems (PMSs) that are based on traditional cost-accounting systems do not capture the relevant performance issues for today's manufacturing environment. A variety of integrated systems have been proposed to overcome the limitations of the traditional PMSs, but these systems have been inadequate. This paper presents an integrated dynamic performance measurement system (IDPMS) that integrates three main areas: company management, process improvement, and the factory shop floor. To achieve an integrated system, these three areas are linked through dynamically defined performance measures and performance standards from production planning to customer. The indicators are transformed into quantitative just-in-time parameters that are utilized with management by objectives (MBO) principles to develop a manufacturing PMS that satisfies both internal and external customers. An example is given that illustrates how the IDPMS addresses current PMS requirements.

Suggested Citation

  • Chen, Chee-Cheng, 2008. "An objective-oriented and product-line-based manufacturing performance measurement," International Journal of Production Economics, Elsevier, vol. 112(1), pages 380-390, March.
    • Handle: RePEc:eee:proeco:v:112:y:2008:i:1:p:380-390
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    Cited by:

    1. Ehsan Pourjavad & Rene V. Mayorga, 2019. "A comparative study and measuring performance of manufacturing systems with Mamdani fuzzy inference system," Journal of Intelligent Manufacturing, Springer, vol. 30(3), pages 1085-1097, March.
    2. Malgorzata Gajowiak, 2015. "Asset Sources Of Competitive Advantage Of Smes From High-Tech Sector In The Region Of Greater Poland," Oeconomia Copernicana, Institute of Economic Research, vol. 6(4), pages 73-90, December.
    3. Amanda Curry, 2019. "Across the great divide: a literature review of management accounting and operations management at the shop floor," Management Review Quarterly, Springer, vol. 69(1), pages 75-119, February.
    4. Saghaei, Abbas & Najafi, Hoorieh & Noorossana, Rassoul, 2012. "Enhanced Rolled Throughput Yield: A new six sigma-based performance measure," International Journal of Production Economics, Elsevier, vol. 140(1), pages 368-373.
    5. Mohamed CHAHID & Jamila EL ALAMI EL ALAMI & Aziz SOULHI & Nouredine EL ALAMI, 2014. "Performance Measurement Model for Moroccan Automotive Suppliers Using PMQ and AHP," Modern Applied Science, Canadian Center of Science and Education, vol. 8(6), pages 137-137, December.
    6. Braz, Renata Gomes Frutuoso & Scavarda, Luiz Felipe & Martins, Roberto Antonio, 2011. "Reviewing and improving performance measurement systems: An action research," International Journal of Production Economics, Elsevier, vol. 133(2), pages 751-760, October.
    7. Chahal, Hardeep & Gupta, Mahesh & Bhan, Namrita & Cheng, T.C.E., 2020. "Operations management research grounded in the resource-based view: A meta-analysis," International Journal of Production Economics, Elsevier, vol. 230(C).
    8. Alphonse Singbo & Alfons Oude Lansink & Grigorios Emvalomatis, 2014. "Estimating farmers’ productive and marketing inefficiency: an application to vegetable producers in Benin," Journal of Productivity Analysis, Springer, vol. 42(2), pages 157-169, October.
    9. Youchao Tan & Yang Zhang & Roohollah Khodaverdi, 2017. "Service performance evaluation using data envelopment analysis and balance scorecard approach: an application to automotive industry," Annals of Operations Research, Springer, vol. 248(1), pages 449-470, January.

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