Benchmarking the Lean Six Sigma performance measures: a balanced score card approach

2019 ◽  
Vol 26 (6) ◽  
pp. 1921-1947 ◽  
Author(s):  
Shruti J. Raval ◽  
Ravi Kant ◽  
Ravi Shankar
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Six Sigma ◽  
Manufacturing Industry ◽  
Lean Six Sigma ◽  
Performance Measurement System ◽  
Content Type ◽  
Score Card ◽  
Manufacturing Organizations

Purpose The purpose of this paper is to develop the balance score card (BSC) approach based Lean Six Sigma (LSS) performance measurement system and investigate the critical measures currently practiced by Indian manufacturing organizations. Design/methodology/approach This study offers insights of LSS performance measurement from manufacturing industry. Initially, the BSC-based framework is developed to recognize the adoption of LSS performance measures. Then, the framework is applied to nine Indian manufacturing organizations to assess the LSS performance measure practice. Findings The BSC-based framework of LSS performance evaluation for manufacturing industry is formulated. Then, adoption of these LSS performance measures is investigated with nine Indian manufacturing organizations. The result indicates significant variability in terms of practicing level of LSS measures. However, the majority of organizations are more sensitive to the customer perspectives. Practical implications This study reveals a background as to why the performance measurement is required for the success of LSS and for providing practical guidelines for designing performance metrics. The framework interrelates and captures various LSS perspectives and indicator measures, and furnishes a comprehensive outlook of the organization for strategic analysis. This study provides BSC-based template for performing the benchmarking study. This analysis may serve as a reference point for manufacturing organization to determine their system weaknesses, and assist them to concentrate on their most vital and suitable criteria and objectives. However, the analysis contributes to the knowledge on LSS performance measurement system and catches differences in theory and practice, paving the approach to newer research. Originality/value This study renders an industry-oriented LSS performance measurement practical approach and suggests the easily adopted vital performance measures for different manufacturing organizations.

scholarly journals Performance measurement systems in auditing firms

2015 ◽  
Vol 5 (4) ◽  
pp. 395-423 ◽  
Author(s):  
Mohamed Hegazy ◽  
Myada Tawfik
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Performance Measurement System ◽  
Future Research ◽  
High Quality ◽  
Content Type ◽  
Financial Measures ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to investigate challenges facing auditing firms in designing and measuring their performance and discusses why and how the balance scorecard (BSC) could support the auditing firms overcome such challenges. The paper contributes to the existing literature by identifying the peculiarity of the auditing firms in designing and implementing performance measurement systems including the need for sound and advanced information systems, subjectivity embedded in measuring customer satisfaction, growth and success of the firms and restrictions imposed by regulations and auditing standards for the provision of non-audit services which may increase the firms’ revenues and profits to help maintain high-quality outputs. Also, the paper provided evidence for the use of non-financial measures in service industry in particular for customers and finance. The unique dilemma in the auditing firms to provide services to satisfy customers yet maintaining distance and independence from them represent an important research question requiring investigation and study. Design/methodology/approach – A review of the literature for performance evaluation in general and in particular BSCs in service industries was made to identify challenges facing auditing firms when measuring their performance. Data were collected using case study approach; two auditing firms, one of the Big 4 and a medium size auditing firm with international affiliation operating in the Egyptian market were selected. Interviews, document analysis and participant observations were used in the analysis of each firm performance measurement system. Findings – The paper suggests that major challenges face auditing firms in measuring their performance mainly the size of the firm and its affiliation with international auditing firm, the qualification and experience of partners and audit managers needed for the design and implementation of a BSC or similar performance measures, the resources required for the introduction of such performance measure and the peculiarity of the auditor and client relationship with the need to maintain independence and confidentiality while providing high-quality services. Although both auditing firms being studied have formal performance measurement systems, they differ in their degree of comprehensiveness. In particular, the performance measurement system of the larger firm is more elaborate than that of the smaller one and both place more emphasis on qualitative measures such as learning and growth and internal business processes than financial measures. Research limitations/implications – Overall, the results have implications for understanding the performance measurement process of auditing firms in general and in particular in an emerging economy such as Egypt. The identification of the challenges facing auditing firms in measuring their performance and how the implementation of BSC can help partners and employees to overcome those challenges will add to the literature for performance evaluation in service companies. Future research should be carried to compare and assess differences between the behavioural aspects of performance measures in auditing firms and possible application of BSC in such firms and those used in services industry. Also, the practicality of implementing a BSC measures for different auditing firms should be investigated further in future research. Originality/value – The research among the first to investigate the challenges facing auditing firms in designing and operating a performance measurement system and to discuss, using case studies, how a BSC could support the auditing firms to overcome such challenges. Further, the research provides insights into performance measures in auditing firms in developing economies like Egypt which are sparse since most studies have been conducted in developed economies. Also, the paper enriches the literature of performance measurement systems in service rather than the manufacturing sector especially for medium and small size firms.

Performance measurement system for a lean manufacturing setting

2019 ◽  
Vol 23 (3) ◽  
pp. 240-252 ◽  
Author(s):  
Samudi Perera ◽  
Chandana Perera
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Lean Manufacturing ◽  
Performance Measurement System ◽  
Structured Interviews ◽  
Content Type ◽  
Lean Practices ◽  
Manufacturing Performance ◽  
Key Performance Measures

Purpose The purpose of this paper is to propose a performance measurement system for a lean manufacturing environment, which assesses the multi-dimensional performance of lean manufacturing. Design/methodology/approach Following a case study approach, structured interviews were conducted to identify the parameters to measure the performance of a lean manufacturing apparel company. A model was developed with the analytical hierarchical process to assess the performance. Findings The proposed model consists of three levels: first level (overall manufacturing performance), second level (criteria that represent the stakeholders’ view of manufacturing performance) and third level (sub-criteria for the criteria which represent the areas affected by lean manufacturing). The model connects indicators that measure manufacturing performance with the areas required improvements, according to their relative importance to stakeholders. Research limitations/implications The interviewers’ perspectives were used to determine the importance of each manufacturing area for stakeholders. Key performance measures can vary from company to company. Practical implications Managers can use this model to identify important areas for manufacturing performance and the performance improvements driven by different types of lean practices. The results revealed that identifying stakeholders’ requirements was an important aspect of evaluating manufacturing performance. Social implications The model embeds a stakeholder approach in performance measurement, thereby providing a comprehensive model to assess performance. Originality/value This study applies the stakeholder view to identify the multi-dimensional nature of performance in a lean manufacturing setting. It also defines the key performance measures using lean practices.

Lean Six Sigma effect on Jordanian pharmaceutical industry’s performance

2019 ◽  
Vol 10 (1) ◽  
pp. 23-43 ◽  
Author(s):  
William Hanna Alkunsol ◽  
Abdel-Aziz Ahmad Sharabati ◽  
Nidal Amin AlSalhi ◽  
Hamza Sultan El-Tamimi
Keyword(s):  
Pharmaceutical Industry ◽  
Six Sigma ◽  
Business Performance ◽  
Manufacturing Industry ◽  
Lean Six Sigma ◽  
Pharmaceutical Manufacturing ◽  
Future Research ◽  
Content Type ◽  
Manufacturing Organizations ◽  
Strong Relationships

Purpose This study aims to investigate the effect of Lean Six Sigma elements on the Jordanian Pharmaceutical Manufacturing organizations’ business performance. Design/methodology/approach Data were collected from 120 managers out of about 300 managers by means of questionnaire. After confirming normality, validity and reliability of the study tool, correlation analysis was carried out, and then multiple regressions were used to test the hypotheses. Findings The results show that there is an agreement on high implementation of Lean Six Sigma variables among Jordanian Pharmaceutical Manufacturing organizations; there are strong relationships among Lean Six Sigma variables, except between non-utilized talent and transportation; there are strong relationships between Lean Six Sigma variables and business performance. All Lean Six Sigma variables have effect on business performance, except extra processing and waiting time. Research limitations/implications This study was carried out on the pharmaceutical industry in Jordan, generalizing results of one industry and/or one country to other industries and/or countries may be questionable. Extending the analyses to other industries and countries represents future research opportunities. Practical implications Implementing Lean Six Sigma variables in all Jordanian Pharmaceutical Manufacturing organizations can improve their business performance; also, it can be applied to other manufacturing industry. Social implications The aim of all organizations is to reduce waste, which leads to reserve the natural resources, which is considered as a corporate social responsibility. Originality/value Only few studies related to Lean or Six Sigma have been carried out in pharmaceutical industry in Jordan. Therefore, this study might be considered as an initiative study, which studies the effect of both Lean and Six Sigma on pharmaceutical industry in Jordan.

Is more really better? Performance measure variety and environmental uncertainty

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pall Rikhardsson ◽  
Stefan Wendt ◽  
Auður Arna Arnardóttir ◽  
Throstur Olaf Sigurjónsson
Keyword(s):  
Firm Performance ◽  
Performance Measurement ◽  
Performance Measures ◽  
Measurement System ◽  
Environmental Uncertainty ◽  
Performance Measure ◽  
Performance Measurement System ◽  
Service Firms ◽  
Content Type ◽  
Improve Measurement

PurposeThis paper asks the question of whether more environmental uncertainty affects the design of performance measurement systems in terms of a greater variety of performance measures and whether this leads to more management satisfaction with the performance measurement system and improved firm performance.Design/methodology/approachInformation processing theory is used to frame the hypotheses and findings. A questionnaire was sent to the 300 largest companies in Iceland, where environmental uncertainty has been prevalent.FindingsThe results indicate that increased uncertainty leads to a larger variety of non-financial performance measures, such as customer measures. A positive relationship is found between management satisfaction with the performance measurement system and firm performance. However, the variety of performance measures was not linked to management satisfaction or firm performance.Research limitations/implicationsThe results suggest that managers increase the variety of performance measures when uncertainty increases. However, it is not the variety itself that increases management satisfaction or improves firm performance.Practical implicationsPerformance measurement design is affected by environmental uncertainty. Managers focus on important stakeholder groups such as customers under such conditions and can consult research and practice for the purpose of customer relationship management and customer profitability measurement to improve measurement selection.Originality/valueThis work focusses on performance measurement system design, examining the use of more than 50 different performance measures, and differentiates between small and medium-sized firms and between service and non-service firms.

Supplier performance measurement system use, relationship trust, and performance improvement: a dyadic perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vieri Maestrini ◽  
Andrea Stefano Patrucco ◽  
Davide Luzzini ◽  
Federico Caniato ◽  
Paolo Maccarrone
Keyword(s):  
Performance Measurement ◽  
Performance Improvement ◽  
Measurement System ◽  
Structural Equation ◽  
Performance Measurement System ◽  
Content Type ◽  
Performance Improvements ◽  
Supplier Performance ◽  
Performance Measurement Systems ◽  
The Impact

PurposeGrounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.Design/methodology/approachThe authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.FindingsResults suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.Originality/valueThe authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.

scholarly journals Formulating A Performance Measurement System using Balanced Score Card in Islamic Philanthropy Institutions

2017 ◽  
Vol 36 ◽  
pp. 00023
Author(s):  
A’ieshah Abdullah Sani ◽  
Amilia Saidin ◽  
Khair Syakira Bustamam ◽  
Siti Azrina Adanan ◽  
Khairunnisa Abd Samad
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Performance Measurement System ◽  
Balanced Score Card ◽  
Score Card ◽  
A Performance

Development of footprint framework of performance measurement system for SMMOs

2020 ◽  
Vol 17 (5) ◽  
pp. 727-756
Author(s):  
G.S. Dangayach ◽  
Gaurav Gaurav ◽  
Sumit Gupta
Keyword(s):  
Performance Measurement ◽  
Business Model ◽  
Measurement System ◽  
Ease Of Use ◽  
Performance Measurement System ◽  
Barriers To Adoption ◽  
Rapid Improvement ◽  
Research Attention ◽  
Content Type ◽  
Design And Implementation

PurposeThe performance measurement system (PMS), recognized as an important tool for rapid improvement, has found wide applications in the larger organizations and has received a lot of research attention in recent past. PMS adoption in SMEs is low even though SMEs have realized its importance and benefits and are now ready to embrace PMS as a tool for improvement. This paper proposes a novel framework, called the footprint framework, for design and implementation of PMS for SMEs. The proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS.Design/methodology/approachThe theoretical framework was conceptualized and its basis was tested for feasibility using an industry survey. The survey was analyzed using the statistical tools available in the SPSS 24.0 statistical analysis software, and the insights obtained from this analysis were used to shape the proposed framework. The framework was populated for small and medium manufacturing organizations (SMMOs) as a case study. Analytic hierarchy process was used to synthesize the data provided by the survey to build up the proposed framework and its components.FindingsThe footprint framework is a unique framework in the respect that it consists of a set of PMS suited to different company profiles that can be accessed quickly. Any SMMO that desires to determine its future PM requirements has simply to define its probable profile of the future in terms of size, business model and order winner and check the PMS appropriate to that profile from the footprint framework. Thus the SMMO can even prepare for its futuristic PM needs.Research limitations/implicationsThe proposed framework overcomes some of the major barriers to adoption by simplifying the process of design and implementation of PMS. The main advantages of the footprint framework are its simplicity, ease of use, immediate implementation and a built-in knowledge bank.Practical implicationsThis research has proposed a new PMS framework, an out of the box tool that makes it possible for the Indian SMMO to adopt PMS on an instant basis. The footprint framework combines the experience of several researchers and several practitioners to offer a ready-made starter kit that needs no other aid to implement a most appropriate PMS and leverage the industry PM best practices to build the performance measurement knowledge and expertise of the SMMO without going through a protracted learning or training process.Social implicationsThis research has made a novel proposal for a PMS framework by proposing the footprint framework – a PMS framework that is not only an instant, out of the box solution for the SMMOs but also incorporates the know-how to implement the performance measurement complete with information on what to measure, how to interpret and what should be done to improve.Originality/valueThe proposed framework is simple to understand and removes a key barrier of PMS adoption for SMMOs. The user SMMO needs to state its size, business model and order winner from the available options, build up its PMS code, select the matching PMS from the framework and the SMMO is ready to implement the PMS.

Analyzing the Lean Six Sigma enabled organizational performance to enhance operational efficiency

2020 ◽  
Vol 27 (8) ◽  
pp. 2401-2434
Author(s):  
Shruti J. Raval ◽  
Ravi Kant ◽  
Ravi Shankar
Keyword(s):  
Organizational Performance ◽  
Six Sigma ◽  
Role Model ◽  
Operational Efficiency ◽  
Lean Six Sigma ◽  
Optimum Level ◽  
Content Type ◽  
Efficient Organization ◽  
Manufacturing Organizations ◽  
The Impact

PurposeThe aim of this analysis is to review the Indian manufacturing organizations practicing Lean Six Sigma (LSS) tools/techniques with an objective of monitoring the performance of an organization and to develop recommendation for strategies to benchmark organizational operational efficiency.Design/methodology/approachThis study offers insights of the LSS performance measurement aspects of the Indian manufacturing organizations based on Data envelopment analysis (DEA) approach. The five inputs and two outputs are considered on the basis of literature review and discussed with the practitioners.FindingsIn this analysis, the relative efficiency score of 18 Indian manufacturing organizations has been determined in order to assist evaluation of the impact of monetary investment on the outputs. The present analysis not only investigates the optimum level of input variables but also lays down a significant observation that an organization having higher profit and inventory turnover ratio is not necessarily an efficient organization.Practical implicationsThe results assist to determine the best practice units, potential source of inefficiency and deliver beneficial data for the consistent enhancement of the operational efficiency. The DEA results assist managers and decision makers to derive appropriate strategies to enhance their performance with reference to the efficient organization and to regard it as their role model.Originality/valueThis analysis renders a DEA based framework of LSS practicing Indian manufacturing organizations. The framework is unique in terms of its input-outputs variable selection and measurement procedure.

Lean Six Sigma: a clinical treatment for the recovery of Indian manufacturing sector from the after-effects of coronavirus

2020 ◽  
Vol 17 (3) ◽  
pp. 311-322 ◽  
Author(s):  
Harsimran Singh Sodhi
Keyword(s):  
Six Sigma ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Lean Six Sigma ◽  
Clinical Treatment ◽  
Content Type ◽  
After Effects ◽  
The World ◽  
Tools And Techniques ◽  
The Impact

PurposeManufacturing industry is quite badly hit due to the coronavirus. Manufacturing has been stopped in every country. The present study will provide assistance to the practitioners to recover manufacturing sector from the after-effects of coronavirus.Design/methodology/approachA thorough review of the recent articles published in the newspaper and web has been done to make a viewpoint on the global industrial impact due to epidemic corona. Reports of WHO, IMF, World Bank, RBI and so forth are also reviewed. Further, Lean Six Sigma has been suggested which can be implemented to recover manufacturing industry from the ill effects of corona.FindingsIn present study the problem causd in the manufacturing sector due to corona virus has been identified and a clinical treatment for the same has been proposed by using the tools and techniques of Lean Six Sigma.Originality/valueThe impact of coronavirus has become a huge issue not only for the physical health of human beings but also for the economic health of most of the countries in the world, as it is pushing the world economy toward huge economic depression. Therefore, it becomes the moral responsibility of industrial experts to suggest the tools and techniques to the manufacturing industry for faster recovery.

scholarly journals A performance measurement system for change initiatives

2019 ◽  
Vol 25 (7) ◽  
pp. 1647-1672
Author(s):  
Dag Naslund ◽  
Andreas Norrman
Keyword(s):  
Organizational Change ◽  
Performance Measurement ◽  
Measurement System ◽  
Major Change ◽  
Process Efficiency ◽  
Performance Measurement System ◽  
Change Initiative ◽  
Change Initiatives ◽  
Content Type ◽  
Practical Reality

Purpose The purpose of this paper is to develop, implement, test and further enhance a framework for measuring organizational change initiatives. Design/methodology/approach The conceptual part of the framework is based on the structured analysis of existing literature. The framework was further developed during an action research (AR) study where the authors developed, implemented, evaluated and improved the measurement system for organizational change initiatives. Findings The academic literature is rich in conceptual articles providing required characteristics of a “good” measurement system and frameworks for how organizations should measure performance. However, academia provides less empirical evidence of how these performance measurement systems can be implemented, evaluated and improved. In this paper, the authors present a study where the developed measurement system has been implemented, evaluated and improved. The results in terms of how the actual framework worked as well as the response from the case organizations are equally positive. Research limitations/implications The framework has been implemented in two different, major change initiatives in one case organization. While the results are truly encouraging, the framework needs to be further tested and refined in more organizations. Practical implications There is a gap between academic perception and practical reality regarding how organizations should measure performance in general as well as measuring organizational change initiatives. The presented, and empirically tested, framework measures both the results of the change initiative (effectiveness) the actual change process (efficiency) as well as the perception of the change initiative and process from different key stakeholders. Originality/value This is the first developed, implemented and further improved measurement system for organizational change which measures both the efficiency and effectiveness of the change initiative (process).

Sign in / Sign up

Export Citation Format

Share Document