Measurement performance system thesis

Figure Implementation process of a performance measurement system. The financial perspective evaluates the book value of the company that is calculated by past-oriented financial indicators. The evaluation compares the functionality of the described systems with the particular requirements of a supply chain-related performance measurement instrument.

The intent of the scorecard is to provide a formalized mechanism for influencing managers to achieve a balance between nonfinancial and financial results across short-term and long-term time horizons Brewer,p.

neely et al 1995 performance measurement

Each perspective provides a selection of performance indicators to measure the financial and intellectual capital of the company. The following figure shows the structure of the Performance Pyramid at a glance. Figure Correlation of deliverability and production turnover.

A quite similar approach is described by GIESE where the main requirements towards a performance measurement system for supply chains are Giese,p.

Research area Industrial Production. Figure Evaluation results of customer-related performance indicators. Within the different perspectives individual targets and performance indicators need to be formulated by the company using the scorecard for the evaluation of business performance. The evaluation compares the functionality of the described systems with the particular requirements of a supply chain-related performance measurement instrument. The following figure shows the structure of the Performance Pyramid at a glance. The last element represented by the continuous improvement focuses on the optimization of the strategy, the targets and the process performance indicators and supports the company to reach the Quantum Performance Schomann, , p. A strategic implementation of SCM in business environments can be realized with different management concepts, such as efficient consumer response ECR or collaborative planning, forecasting and replenishment CPFR. A quite similar approach is described by GIESE where the main requirements towards a performance measurement system for supply chains are Giese, , p. The combination of financial and non-financial performance indicators offers a more holistic view of the business environment and supply chain processes. Furthermore the performance measurement tool can be divided into an external scope, representing the customer interests like deliverability, quality or customer satisfaction, and an internal scope, representing the interests of the shareholders like financial performance, productivity or lead time. As a result, it has become difficult to measure their true performance and contribution of value to the network. Figure Correlation of deliverability and inventory days. This is able to provide value chain based information to the management in order to optimize supply chain-wide processes the customer is willing to pay for. Within the performance measurement system this can be realized by sophisticated performance indicators that reflect the strategic goals of the company. Figure Structure of the Skandia Navigator.

Figure Evaluation results of customer-related performance indicators. After purchasing the required raw materials from the supplier the order fulfillment is ongoing until the final product gets delivered to the customer. The continuous improvement of identified potentials as well as the reduction of complexity allows the design of a more flexible and cost-efficient supply chain network.

Again, this result clearly shows a discrepancy of real business performance and evaluated indicators. Within the process perspective the value of integrated information systems and technologies is considered.

Furthermore each department needs to consider interdependencies with other departments when defining their individual Tableau de Bord in order to avoid inefficiencies. Furthermore the analysis confirms that significant improvements in non-financial indicators are necessary for a moderate improvement in financial indicators.

Measurement performance system thesis

Core plants are the manufacturing plants that aims to achieve competitive and effective production, generate and transfer knowledge, while leading and coordinating the other plants within the network. In contrast, the following part of this master thesis will focus on the description and evaluation of existing performance measurement systems for supply chains. As a result, it has become difficult to measure their true performance and contribution of value to the network. Main target of SCM is the design of an efficient and flexible value chain across company borders in order to supply customers with the required products and services. Strategies for reducing complexity are for example postponement, mass customization or the implementation of information and communication technologies Wildemann, , p. The base of the Performance Pyramid is represented by different departments like quality, logistics, production and support Schomann, , p. The master thesis closes with a suggestion of further development and implementation steps to establish this performance measurement system along the supply chain organization. Figure Structure of the Tableau de Bord. A strategic implementation of SCM in business environments can be realized with different management concepts, such as efficient consumer response ECR or collaborative planning, forecasting and replenishment CPFR. From the divisional level the targets are once again broken down to the functional level. Figure Industry-based supply chain characteristics. The thesis concludes with a suggestion of a conceptual framework that provides the guidelines to develop a comprehensive performance measurement system for core plants. Figure Measurement of performance indicators in Singapore companies. After purchasing the required raw materials from the supplier the order fulfillment is ongoing until the final product gets delivered to the customer. This development process is a prerequisite for the development of new performance indicators and strategic targets.
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Doctoral thesis: Performance measurement systems of importance on corporate profitability