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


  • Chen, Chee-Cheng


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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    References listed on IDEAS

    1. 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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    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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    Cited by:

    1. Ehsan Pourjavad & Rene V. Mayorga, 0. "A comparative study and measuring performance of manufacturing systems with Mamdani fuzzy inference system," Journal of Intelligent Manufacturing, Springer, vol. 0, pages 1-13.
    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. 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.
    4. 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.
    5. 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.
    6. repec:spr:annopr:v:248:y:2017:i:1:d:10.1007_s10479-016-2196-2 is not listed on IDEAS

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