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

Listed author(s):
  • 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. 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.
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    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, vol. 96(3), pages 381-395, June.
    8. 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, vol. 48(3), pages 207-225, February.
    9. Matsuo, Makoto, 2006. "Customer orientation, conflict, and innovativeness in Japanese sales departments," Journal of Business Research, Elsevier, vol. 59(2), pages 242-250, February.
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