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


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  • Chen, Chee-Cheng
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    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.

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    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 112 (2008)
    Issue (Month): 1 (March)
    Pages: 380-390

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    Handle: RePEc:eee:proeco:v:112:y:2008:i:1:p:380-390

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    1. Ghalayini, Alaa M. & Noble, James S. & Crowe, Thomas J., 1997. "An integrated dynamic performance measurement system for improving manufacturing competitiveness," International Journal of Production Economics, Elsevier, Elsevier, vol. 48(3), pages 207-225, February.
    2. Abernethy, Margaret A. & Lillis, Anne M., 1995. "The impact of manufacturing flexibility on management control system design," Accounting, Organizations and Society, Elsevier, vol. 20(4), pages 241-258, May.
    3. Huff, Lenard & Kelley, Lane, 2005. "Is collectivism a liability? The impact of culture on organizational trust and customer orientation: a seven-nation study," Journal of Business Research, Elsevier, vol. 58(1), pages 96-102, January.
    4. Suwignjo, P. & Bititci, U. S & Carrie, A. S, 2000. "Quantitative models for performance measurement system," International Journal of Production Economics, Elsevier, Elsevier, vol. 64(1-3), pages 231-241, March.
    5. Conduit, Jodie & Mavondo, Felix T., 2001. "How critical is internal customer orientation to market orientation?1," Journal of Business Research, Elsevier, vol. 51(1), pages 11-24, January.
    6. Perera, S. & Harrison, G. & Poole, M., 1997. "Customer-focused manufacturing strategy and the use of operations-based non-financial performance measures: A research note," Accounting, Organizations and Society, Elsevier, vol. 22(6), pages 557-572, August.
    7. Reiner, Gerald, 2005. "Customer-oriented improvement and evaluation of supply chain processes supported by simulation models," International Journal of Production Economics, Elsevier, Elsevier, vol. 96(3), pages 381-395, June.
    8. Matsuo, Makoto, 2006. "Customer orientation, conflict, and innovativeness in Japanese sales departments," Journal of Business Research, Elsevier, vol. 59(2), pages 242-250, February.
    9. Lillis, Anne M., 2002. "Managing multiple dimensions of manufacturing performance -- an exploratory study," Accounting, Organizations and Society, Elsevier, vol. 27(6), pages 497-529, August.
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    Cited by:
    1. 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, Elsevier, vol. 133(2), pages 751-760, October.
    2. Saghaei, Abbas & Najafi, Hoorieh & Noorossana, Rassoul, 2012. "Enhanced Rolled Throughput Yield: A new six sigma-based performance measure," International Journal of Production Economics, Elsevier, Elsevier, vol. 140(1), pages 368-373.


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