Development of an integrated performance measurement framework for lean organizations

2018 ◽  
Vol 29 (1) ◽  
pp. 41-84 ◽  
Author(s):  
Narpat Ram Sangwa ◽  
Kuldip Singh Sangwan
Keyword(s):  
Performance Measurement ◽  
Performance Indicators ◽  
Manufacturing Process ◽  
Key Performance Indicators ◽  
Supplier Management ◽  
The Body ◽  
Customer Management ◽  
Content Type ◽  
Measurement Framework ◽  
Integrated Performance

Purpose The purpose of this paper is to propose an integrated performance measurement framework to measure the effect of lean implementation throughout all functions of an organization. Design/methodology/approach The paper identifies the seven categories representing all organizational functions. These categories have been divided into 26 performance dimensions and key performance indicators (KPIs) for each performance dimension have been identified to measure lean performance. The interrelationship of each category with lean principles and/or lean wastes has been identified. KPIs are developed on the basis of identified criteria, frequency analysis of existing literature, and discussion with industry professionals. Finally, an integrated performance measurement framework is proposed. Findings The proposed framework evaluates the organization under seven categories – manufacturing process, new product development (NPD), human resource management, finance, administration, customer management, and supplier management. In total, 26 dimensions and 119 key performance indicators have been identified under the seven categories. Research limitations/implications The proposed framework is a conceptual framework and it is to be tested by empirical and cross-sectional studies. Originality/value The main novelty of the research is that the leanness of the organization has been measured throughout the supply chain of the organization in an integrated way. The various areas of measurement are manufacturing process, NPD, finance, administration, customer management, and supplier management. Further, the proposed KPIs are also categorized as qualitative or quantitative, strategic or operational, social or technical, financial or non-financial, leading or lagging, static or dynamic. This paper contributes to the body of knowledge in performance measurement.

Developing key performance indicators for hospital facilities management services: a developing country perspective

2020 ◽  
Vol 27 (9) ◽  
pp. 2715-2735 ◽  
Author(s):  
Daniel Amos ◽  
Cheong Peng Au-Yong ◽  
Zairul Nisham Musa
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Performance Indicators ◽  
Principal Component ◽  
Key Performance Indicators ◽  
Public Hospitals ◽  
Facilities Management ◽  
Content Type ◽  
Significant Difference ◽  
Level Of Importance

PurposeKey performance indicators (KPIs) help to monitor performance, thereby revealing the gap between planned and executed results relative to organizational objectives. The purpose of this paper is to develop KPIs for performance measurement of facilities management (FM) services in public hospitals.Design/methodology/approachFollowing a comprehensive literature review of KPIs in FM, a set of KPIs were first selected. This was then subjected to content validation by experts. Thereafter a questionnaire survey was conducted to identify participants perception on the level of importance of the proposed KPIs. The main analytical tool used was SPSS factor analysis/principal component extraction.FindingsAdapting an expanded balanced scorecard typology, the paper identifies 17 KPIs, which are useful for performance improvement of FM. The study also introduces new financial dimensions beyond the traditional cost and profit-centered metrics.Research limitations/implicationsThe study was limited to three FM services. Although the results of the Kruskal–Wallis test shows no significant difference in the level of importance on more than 80% of the indicators, larger sample is required in future studies to examine indicator preference for the respective services. An empirical study to test the proposed indicators to measure FM performance could also be a next step.Originality/valueThe paper presents the first step to develop performance indicators, which are of relevance to FM performance measurement and could be utilized to improve performance. The indicators are largely generic and can easily be adapted by other FM service sectors for performance measurement.

An integrated AHP-based scheme for performance measurement in humanitarian supply chains

2019 ◽  
Vol 68 (5) ◽  
pp. 938-957 ◽  
Author(s):  
Ali Anjomshoae ◽  
Adnan Hassan ◽  
Kuan Yew Wong
Keyword(s):  
Performance Measurement ◽  
Supply Chains ◽  
Balanced Scorecard ◽  
Performance Indicators ◽  
Information Overload ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Humanitarian Supply Chains ◽  
Humanitarian Organizations ◽  
Integrated Performance

Purpose In recent years, several performance indicators have been proposed in humanitarian supply chains (HSCs). Selecting the most relevant key performance indicators (KPIs) is challenging for some humanitarian organizations (HOs) because it involves a considerable amount of complexity and information overload which could lead to judgment biases in the decision-making process. Existing performance measurement studies lack critical analysis for prioritization of performance indicators. Since the process of KPIs selection and categorization is a complex, domain based and subjective process, a systematic guideline is needed. To address this gap, the purpose of this paper is to propose an integrated performance measurement scheme that can consolidate KPIs into an overall performance score based on the weighting of the performance indicators in HSCs. Design/methodology/approach Data collection was based on questionnaire surveys and direct interviews with practitioners from international HOs. Findings This paper proposes an integrated scheme based on balanced scorecard and analytic hierarchy process for performance evaluation of HOs. Research limitations/implications The respondents were limited to the humanitarian logistics experts from Malaysian-based international HOs. Practical implications The scheme enables the benchmarking of HOs’ performance that could be useful for decision makers in HSCs. Originality/value This paper provides the ranking and prioritization of KPIs in HSCs. The approach presented in this paper enables an effective and integrated performance measurement in HSCs.

scholarly journals Perancangan Sistem Pengukuran Kinerja Dengan Metode Integrated Performance Measurement System (IPMS) (Studi Kasus: Program Studi Teknik Industri Universitas PGRI Adi Buana Surabaya)

2011 ◽  
Vol 9 (1) ◽  
pp. 16-24
Author(s):  
Yunia Dwie Nurcahyanie
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Performance Indicators ◽  
Key Performance Indicators ◽  
Performance Measurement System ◽  
Measurement Systems ◽  
Stakeholder Requirement ◽  
Performance Measurement Systems ◽  
Integrated Performance

Untuk menjamin kualitas pendidikan di Program Studi Teknik Industri Universitas PGRI Adi Buana surabaya, diperlukan sebuah rancangan sistem pengukuran kinerja (SPK) yang terintegrasi dengan metode IPMS (Integrated Performance Measurement Systems). Dengan metode IPMS, Key Performance Indicators (KPI) Program Studi Teknik Industri ditentukan berdasarkan stakeholder requirement melalui empat tahapan yaitu; identifikasi stakeholder requirement, external monitor, penetapan objectives, dan identifikasi KPIs. Hasil perancangan SPK di Program Studi Teknik Industri Universitas PGRI Adi Buana Surabaya, dapat mengidentifikasi 26 KPIs yang dikelompokkan dalam 9 kriteria kinerja Program Studi Teknik Industri, yaitu; kurikulum, mahasiswa, finansial, SDM, administrasi akademik, proses belajar mengajar, lulusan, evaluasi dan pengendalian, dan masyarakat

scholarly journals EVALUASI KINERJA PROGRAM STUDI PENDIDIKAN TEKNIK MESIN FKIP UNS MENGGUNAKAN METODE INTEGRATED PERFORMANCE MEASUREMENT SYSTEMS (IPMS)

2017 ◽  
Vol 10 (1) ◽  
pp. 11
Author(s):  
Bekti Khonaah ◽  
Suharno Suharno ◽  
Budi Harjanto
Keyword(s):  
Performance Measurement ◽  
Analytical Hierarchy Process ◽  
Performance Indicators ◽  
Key Performance Indicators ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
Integrated Performance ◽  
Hierarchy Process

<p>Penelitian ini bertujuan untuk mengevaluasi kinerja dari Program Studi Pendidikan Teknik Mesin. Metode yang digunakan pada penelitian ini adalah (1) <em>Integrated Performance Measurement Systems</em> (<em>IPMS</em>) yang tujuan utamanya adalah merancang sistem pengukuran; (2) <em>Analytical Hierarchy Process</em> (<em>AHP</em>) yang bertujuan untuk melakukan pembobotan indikator; dan (3) <em>Objective Matrix</em> (<em>OMAX</em>) yang bertujuan untuk melakukan pengukuran kinerja. Hasil dari penelitian ini adalah sebagai berikut. <em>Pertama</em>, hasil rancangan pengukuran kinerja terdiri dari 14 indikator yang termasuk dalam 6 kriteria perspektif pengukuran kinerja. <em>Kedua</em>, tingkat kinerja pada tiap <em>Key Performance Indicators</em> (<em>KPI</em>) yang paling tinggi adalah indikator tersedia instrumen baku untuk mengukur kinerja dosen dalam perkuliahan, sedangkan kinerja yang paling rendah adalah indikator 95% lembar Berita Acara Perkuliahan (BAP). Kinerja Program Studi Pendidikan Teknik Mesin secara keseluruhan memiliki indeks kinerja sebesar 5,055, sehingga kinerja pada Program Studi Pendidikan Teknik Mesin masuk dalam kategori mengalami peningkatan kinerja. <em>Ketiga</em>, kinerja yang perlu ditingkatkan pada Program Studi Pendidikan Teknik Mesin Universitas Sebelas Maret Surakarta terdapat 8 <em>Key Performance Indicators</em> (<em>KPI</em>).  Kinerja yang perlu diperbaiki pada Program Studi Pendidikan Teknik Mesin Universitas Sebelas Maret Surakarta adalah 95% lembar Berita Acara Perkuliahan  (BAP) terisi.</p><p> </p><p><strong>Kata Kunci</strong>: pengukuran kinerja, <em>IPMS</em>, <em>AHP</em>, Pendidikan Teknik Mesin, <em>KPI</em>.</p>

scholarly journals THE SELECTION OF PRODUCTIVITY KEY PERFORMANCE INDICATORS FOR CAR MANUFACTURING COMPANIES USING INTEGRATED PERFORMANCE MEASUREMENT SYSTEM

SINERGI ◽  
2018 ◽  
Vol 22 (2) ◽  
pp. 101
Author(s):  
Uly Amrina ◽  
Alfa Firdaus
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Performance Indicators ◽  
Performance Indicator ◽  
Key Performance Indicators ◽  
Performance Measurement System ◽  
Manufacturing Companies ◽  
Stakeholder Requirement ◽  
Integrated Performance ◽  
Stakeholder Requirements

The increase in car market 17% in 2020, and ASEAN Free Trade policy only 5% for imported products, cause tightened competition in the automotive market. Car manufacturing companies face problems in selecting their performance indicators related to competitive challenges. The purpose of this research is to develop productivity key performance indicators in car manufacturing that conform to stakeholder requirements as a strategy to win the market. The conditions are manifested in a mapping of manufacturing symbols using the Integrated Performance Measurement System (IPMS) method. That manufacturing productivity indicators will become the focus of the top management to be controlled. There are four stages to go through, starting with the identification of stakeholder requirement, which produces six criteria and 12 stakeholder requirements and mapped into 16 goals and 24 key performance indicator (KPI). The second stage is benchmarking, and preparation of KPI hierarchy and the third stage is the description of each KPI in the form of KPI specification table. The fourth stage is the weighting of the six main criteria that result in 3 priority criteria which must be reported monthly between the manufacturing division (painting), finance and administration. Those are employee safety, manufacturing process effectiveness (painting) and waste elimination activities. The priority is obtained based on questionnaires answered by ten stakeholders (experts) processed with Analytical Hierarchy Process (AHP) approach and has been tested consistency in the number 0.09. These three criteria are described in 15 KPIs: performance rate, availability rate, quality rate, trained operator ratio, training value ratio> 80, delay ratio, attendance ratio, downtime losses, setup and adjustment losses, idle time, defect losses, yield losses, manpower efficiency, environmental impact and work accident ratio. 

Executing strategy through comprehensive performance measurement systems

2017 ◽  
Vol 37 (4) ◽  
pp. 423-443 ◽  
Author(s):  
Pietro Micheli ◽  
Matteo Mura
Keyword(s):  
Performance Measurement ◽  
Performance Indicators ◽  
Company Performance ◽  
Content Type ◽  
Cost Leadership ◽  
Measurement Systems ◽  
Comprehensive Performance ◽  
Different Types ◽  
Performance Measurement Systems

Purpose The purpose of this paper is to investigate the mediating role of comprehensive performance measurement systems (PMS) – i.e. measurement systems that comprise financial and non-financial indicators, and which also consist of indicators related to different aspects of an organisation’s operations – in the relationship between strategy and company performance. Design/methodology/approach Survey data of top managers of large European companies were collected and analysed by means of exploratory factor analyses and hierarchical regressions in order to validate the proposed hypotheses. Findings This research shows that different strategies lead to the use of different types of performance indicators. Also, it finds that the utilisation of a comprehensive PMS enables the implementation of both differentiation and cost-leadership strategies. Specifically, a comprehensive PMS positively mediates the effect of differentiation strategy on organisational and innovative performance, and of cost-leadership strategy on organisational performance. Research limitations/implications Further research could be undertaken in other contexts and consider additional factors, such as the structure, maturity and different uses of PMS, and the cost of measuring performance. Qualitative studies could examine the role of PMS in dynamic environments, as well as the evolution of PMS during strategic transitions. Practical implications Greater consideration should be given to the utilisation of different types of performance indicators when implementing and re-formulating strategy. Originality/value This study clarifies the links between strategy and performance measurement, and it is the first to identify the mediating effect of comprehensive PMS between strategy and company performance.

Key performance indicators for a sustainable recovery strategy in health-care supply chains: COVID-19 pandemic perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Towfique Rahman ◽  
Md. Abdul Moktadir ◽  
Sanjoy Kumar Paul
Keyword(s):  
Health Care ◽  
Supply Chains ◽  
Performance Indicators ◽  
Large Scale ◽  
Production Capacity ◽  
Key Performance Indicators ◽  
Recovery Strategy ◽  
Content Type ◽  
Global Pandemic ◽  
Sustainable Recovery

Purpose Supply chains’ (SCs’) sustainability practices and recovery strategies are attaining popularity in academia and industries to improve the resilience of the SCs and to manage large-scale disruptions. The global pandemic caused by the COVID-19 has raised the question of the sustainability of essential health-care products’ SCs of Bangladesh. It is an essential avenue for making the life of people safe and secure. Despite its importance, most of the health-care SCs in Bangladesh are struggling to meet the demand of its nation due to capacity shortage, technological backwardness of the manufacturers, delivery capacity shortages and less advanced forecasting capabilities. Therefore, this study aims to investigate the key performance indicators (KPIs) of a sustainable recovery strategy in the context of health-care SCs considering the COVID-19 pandemic. Design/methodology/approach This study used a dynamic method named graph theory and matrix approach to evaluate the most critical KPIs of a sustainable recovery strategy in the context of Bangladeshi health-care SCs. Findings The result revealed that dynamic forecasting and planning with a smooth delivery and distribution support system, production capacity diversification and having alternative or multiple suppliers during extraordinary disruptions may aid in the sustainability of the health-care SCs in Bangladesh. Originality/value This study is unique as no previous study has identified and examined the sustainable recovery strategy perspective KPIs considering the COVID-19 pandemic in the context of Bangladeshi health-care SCs. This study will also add value by guiding decision-makers of the health-care SCs of Bangladesh to adopt strategies toward the sustainability of SCs.

Key Performance Indicators for the Organized Farm Products Retailing in India

2017 ◽  
pp. 1316-1329
Author(s):  
Rajwinder Singh ◽  
Ajit Pal Singh ◽  
Bhimaraya A. Metri
Keyword(s):  
Performance Measurement ◽  
Performance Indicators ◽  
Key Performance Indicators ◽  
Performance Measurement System ◽  
Volume Flexibility ◽  
Farm Production ◽  
Product Personality ◽  
Cost Distribution ◽  
Livestock Products ◽  
Agriculture Products

The Non-livestock products include Horticulture products (flowers, fruits, nuts, vegetables and medicinal plants) and Agriculture products (Crops like; rice, cotton, wheat). These items share the maximum sale of the farm products. Unfortunately, the farm production in India has witnessed a huge wastage. It has attracted the attention of many practitioners and policy makers. Witnessing the opportunity many organized retail players have entered the arena to sell farm products. However, the supply chain (SC) performance measurement has remained the major challenge as “No measurement no improvement”. Many organizations are searching for an efficient SC performance measurement system. Our study recommends that the SC performance shall be improved by developing a SC strategy based on a limited set of key performance indicators (KPI). Otherwise, managers shall waste time and resources on the undesirable performance indicators. We have identified and classified the KPI for non-livestock retailing SC management into five groups. These are 1) Customer Attraction Metrics (product quality, product personality, process quality); 2) Inventory Metrics (fill rate, customer response time, return adjustment, spoilage adjustment, and Vendor managed inventory); 3) Attractiveness Metrics (inventory cost, distribution cost, Return on investment, stakeholder value, sales profit and channel flexibility); 4) Transportation Metrics (shipping errors, and volume flexibility); and 5) Customer Metrics (lead time, delivery flexibility, and backorder flexibility). This grouping shall help the practitioners to focus on a limited set of KPI for better management of supply chains.

Translating knowledge management into performance

2019 ◽  
Vol 43 (1) ◽  
pp. 113-132 ◽  
Author(s):  
Kaveh Asiaei ◽  
Nick Bontis
Keyword(s):  
Knowledge Management ◽  
Performance Measurement ◽  
Organizational Performance ◽  
The Body ◽  
Related Factors ◽  
Underlying Assumption ◽  
Knowledge Process ◽  
Content Type ◽  
Knowledge Resources ◽  
Proposed Model

Purpose This paper aims to tie together insights from the body of research on knowledge management (KM) and management accounting control systems to propose a conceptual model in which performance measurement systems (PMS) can play a role in translating knowledge resources into enhanced performance. Design/methodology/approach The underlying assumption of the “fit-as-mediation” approach signifies that knowledge features can play a role in the determination of the structure and implementation of particular managerial processes and this, in turn, may support information processing and lead to desirable results within organizations. Findings Synthesizing theory from performance measurement and the knowledge-based view of the firm, the paper’s analysis and discussions elucidate how the implementation of an overarching PMS, i.e. diversity of measurement, could translate the knowledge-related factors, i.e. knowledge resources and knowledge process capabilities, into enhanced performance. In particular, the proposed model shows that a comprehensive PMS plays an intervening role between KM and organizational performance. Research limitations/implications The proposed model may inspire a new research agenda to show how knowledge initiatives are managed and measured in organizations and how they are properly aligned with specific managerial processes to deliver real value. Practical implications Drawing upon the conceptualized associations among KM, PMS and organizational performance, this paper recommends some practical guidelines by highlighting the importance of PMS whereby organizations may reap maximum benefit from their KM initiatives. Originality/value This paper sheds new light on the links between KM and organizational performance, and it appears to be the first study to propose an intervening effect of PMS between KM and organizational performance.

Patient satisfaction in the context of public–private partnerships

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amani Mallat ◽  
Demetris Vrontis ◽  
Alkis Thrassou
Keyword(s):  
Health Care ◽  
Patient Satisfaction ◽  
Service Quality ◽  
Performance Measurement ◽  
Hospital Performance ◽  
Theoretical Research ◽  
Public Private Partnerships ◽  
Content Type ◽  
Measurement Framework ◽  
Qualitative Performance

Purpose This study aims to provide insights into the public–private partnerships (PPP) concept and its performance measurement in the health-care sector, identifying and refining critical success factors, including the perceived quality of health care, as evidenced by patient satisfaction and policy requirements for successful PPP implementation. Design/methodology/approach This theoretical study explores the existing literature on the relationship between service quality and patient satisfaction, to propose a culture-specific conceptual model interlinking the drivers of patient satisfaction with PPP. The in-depth theoretical research focuses on the qualitative performance indicators of PPPs, as well as their corresponding peripheral factors. Findings The research presents theoretical evidence that the concept of patient satisfaction can only be viewed through a multifactor perspective that incorporates demographics of patients, perceived service quality factors and emotions. It is found that significant improvements in service quality and patient satisfaction do, indeed, emphasize the effective role of PPP in hospitals. Practical implications The theoretical model is based on a comprehensive set of both cognitive and affective determinants. And considering these, as well as their causes, effects and interrelations, sets the foundations for testing and for further research to develop. Moreover, the outcomes of this study can be used as a theoretical base for the development of a PPP qualitative performance measurement framework. Originality/value This study attempts to fill the gap in knowledge on service quality and patient satisfaction as qualitative indicators for hospital performance after and toward PPP, while setting explicit factors and opening clear research avenues for further studies to follow.

Sign in / Sign up

Export Citation Format

Share Document