To evaluate, for example for 5-10 years, performance of a manufacturing firm, what main factors and methods could be useful?
The performance can be measured on:
a) Cost,
b) quality,
c) Flexibility
d) Delivery performance, and
e) ability to change the configuration as desired by the customers!
The performance can be measured on:
a) Cost,
b) quality,
c) Flexibility
d) Delivery performance, and
e) ability to change the configuration as desired by the customers!
Balanced Scorecard can best evaluate all manufacturing firms. BSC has four main perspectives:
1- Learning and Growth Perspective
2- Internal Business Processes Perspective
3- Customer Perspective
4- Financial Perspective
Performance Based on :
-Leadership
-Strategic Planning
-Customer & Market Focus
-Information & Analysis
-Human Resource Focus
-Process Management
-Business Results
Many organisations are using Malcolm Baldrige performance excellence criteria in order to improve the overall performance . This has resulted in better employee relations,higher productivity,greater customer satisfaction,increased market share, and improved profitability.
Other then the prime Economical Gain, which an organization would expect; there are other parameters which establish the longevity of business and sustenance to growth. These parameters are founded upon the Good Prevailing Practices in the Organization, Please refer....
https://www.researchgate.net/publication/262098570_Current_Good_Manufacturing_Practices_%28cGMP%29_Poster?ev=prf_pub
Data Current Good Manufacturing Practices (cGMP) Poster
@Mohsen, there is a meeting on that issue, the 12 Principles of Manufacturing Excellence - How to Achieve and Sustain Excellence ! Follow the link!
http://www.ame.org/events/12-principles-manufacturing-excellence-how-achieve-and-sustain-excellence
Dear Dr.Ljubomir Jacić the link is not opening it reads as "You are not authorized to access this page"
@Krishnan, I have just checked the link and I have realized that they have changed a policy. But, you may approach this web site when You sign in! I have just did it! Sorry! I will try to get some material to share with all of you! regards!
Economic and environmental performances can be evaluated by using different sets of criteria. Apart from the above-mentioned criteria, most of which could be used to evaluate 'economic' performance, there are also criteria such as wastes, emissions, resource utilization, etc., that could be used to evaluate environmental performance.
- Financial report (income, lost, etc)
- CRM (esp. services)
- Quality
- SRM
-...
When it comes to manufacturing there is a PUSH and PULL to this system.
1. PUSH - Operational excellence
2. PULL - Customer Delight
Dear Mohsen,
10 years appear to be a rather long-term perspective to me. Therefore, in addition to the metrics mentioned by the other commentators, I would suggest to measure the achievement of strategic (i.e. long-term) goals. Otherwise, measures like cost-control and production capacity may may divert attention from the overall goals of the company.
If you are interested in a general performance analysis using the Balanced Scorecard approach, which pays due attention to strategy, please feel free to refer to my research paper: "The Balanced Scorecard and Beyond – Applying Theories of Performance Measurement, Employment and Rewards in Management Accounting Education". In the paper you can find further references. It was published in the International Research Journal of Management Sciences 4 (7), pp. 483-491 and thus can be used for referencing.
Paul
Article The Balanced Scorecard and Beyond – Applying Theories of Per...
Some more referent resources from RG database.
Article Manufacturing Firms’ Performance and Productivity: Evidence ...
Article Gaur, Jighyasu and Bhattacharya, Sourabh The relationship of...
Article The impact of quality management systems on the performance ...
Article Does Adoption of Management Standards Deliver Efficiency Gai...
Competitiveness, Quality of product and service, Capacity utilization or Resource utilization, Flexibility and Innovation. Each of these dimensions of Performance have their own specific measures.
I shall my experience, this work is continuous and was started in 2011.
https://www.researchgate.net/project/Performance-Management-Institutionalization
One of the most applicable criteria for measuring organizational performance is the Balanced Scorecard which includes four main perspectives: Financial, internal business processes, customer, and learning and growth perspectives. I may add environmental and society service perspectives to these four perspectives.
Cranfield University research say that more than 50% of large companies use some sort of Balanced ScoreCard as Performance Management System.
http://www.bscdesigner.com/info-graphic-for-the-balanced-scorecard-concept.htm
you have to identify exactly which types of industry in manufacturing. Because, different companies set various criteria for measuring their performances. Generally the all performance criterion categorise into qualitative and quantitative. Flexibility, quality, customer satisfaction and on time delivery will categorise into qualitative and cost, production volume, number of clients and so on classify into quantitative.
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