Design of an effective manufacturing performance measurement system
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abstract
Measures are important to organizational effectiveness and the topic of manufacturing performance measurement (MPM) has recently attracted considerable interest, however, there is little research on what constitutes an effective performance measurement (PM) system. Therefore, the main objective of this paper is to identify the critical characteristics of performance measures as a first step to design an effective MPM system. Throughout a survey of accounting, manufacturing, and managerial literature, different characteristics were found on a consistent basis. The identified set of characteristics can be used to evaluate and improve the measurement system. Also, following a set of guidelines for design performance measures would lead to excellent performance in today's highly turbulent and competitive business environment. The second objective is to establish a typology for performance measurement system by establishing the criteria and attributes of those characteristics. The criteria are measurement system, data, and measurement that can be used to select the performance dimensions and measures. The attributes are configuration, style, actionability, and information. The third objective is to propose a process for measure selection. This method can be used to select the appropriate measures based on the optimum characteristics of performance measures.
