Mj Gregory

Performance measurement system design: A literature review and research agenda

The importance of performance measurement has long been recognized by academics and practitioners from a variety of functional disciplines. Seeks to bring together this diverse body of knowledge into a coherent whole. To ensure that the key issues are identified, focuses on the process of performance measurement system design, rather than the detail of specific measures. Following a comprehensive review of the literature, proposes a research agenda.

Performance measurement system design: developing and testing a process based approach

Describes the development and testing of a structured methodology for the design of performance measurement systems. Frameworks, such as the balanced scorecard and the performance prism, have been proposed, but until recently little attention has been devoted to the question of how these frameworks can be populated, i.e. how managers can decide specifically which measures to adopt. Following a wide ranging review of the performance measurement literature, a framework identifying the desirable characteristics of a performance measurement system design process is developed. This framework provided guidelines which were subsequently used to inform the development of a process‐based approach to performance measurement system design. The process was enhanced and refined during application in three action research projects, involving major UK automotive and aerospace companies. The revised process was then formally documented and tested through six further industrial applications. Finally the process was written up in the form of a workbook and made publicly available.

Manufacturing Audit in the Process of Strategy Formulation

The need to develop manufacturing strategies which are consistent with and supportive of overall business strategies is now widely accepted. A manufacturing audit approach which has been found useful in the process of manufacturing strategy formulation is described. Within manufacturing strategy, the need for a manufacturing audit is identified and the current approaches to audit are reviewed. These existing approaches do not provide an adequate audit process for use in strategy formulation. A structured audit approach based on established frameworks is developed and preliminary results of its use are presented. The approach has been successfully used in several companies; however, there is need for further work in looking at the social aspects of the process.

The use of maturity models/grids as a tool in assessing product development capability

The concepts of process or capability maturity are increasingly being applied to many aspects of product development, both as a means of assessment and as part of a framework for improvement. This paper traces the origins of the maturity grid and reviews methods of construction and application.

Realizing Strategy through Measurement

It is widely accepted that firms should have manufacturing strategies consistent with their overall business strategies, but while much has been written about the content of these strategies, little has been said about how they should be developed and realized. Reports on research which set out to investigate the extent to which UK firms seek to influence the realization of their manufacturing strategies through their performance measurement systems. Over 800 small and medium‐sized manufacturing enterprises (SMEs) in the UK were surveyed in late 1992. Analysis of the data suggests that while firms which compete on quality or time place most emphasis on performance measures which match their strategies, those which compete on price do not.

Performance measurement system design: Should process based approaches be adopted?

Abstract Performance measurement system design is a topic of increasing concern to both academics and practitioners but is complicated by its multi-dimensional nature. When designing measurement systems managers need to resolve issues such as: conflicts between performance measures; the appropriate balance of internal and external measures; the linking of measures and strategy; etc. One way of overcoming the inherent complexity of performance measurement system design might be to employ structured design methodologies. This paper reports the preliminary results of a study into the use of structured processes for the design of performance measurement systems in the UK. Over 850 companies from a variety of industries were surveyed and data on the formality of their performance measurement system design processes were collected. The data show that although few firms use structured methodologies for performance measurement system design, those that do often find it significantly easier to: (a) decide what they should be measuring; (b) decide how they are going to measure it; (c) collect the appropriate data and (d) eliminate conflicts in their measurement system.

A framework for the design of manufacturing strategy processes

Proposes a framework for considering the factors relevant to the design of manufacturing strategy processes. The framework is built from manufacturing and business strategy literature through a review which positions popular strategies like Cellular manufacturing, TQM and JIT within more traditional manufacturing strategy frameworks and includes aspects of strategy that have been rarely mentioned in the manufacturing strategy literature. Thus competence, capability, culture and alternative strategy process modes are incorporated and throughout the review potential influences on the design of the strategy process are identified. Finally the framework′s ability to assist the design of a manufacturing strategy process is tested and the dependence of key process elements like the procedure and tools used are shown to be contingent on, for example, the outputs required from the process and the content areas under development.

A supply network configuration perspective on international supply chain development

– The purpose of this paper is to explore the impact of configuration on supply network capability. It was believed that a configuration perspective might provide new insights on the capability and performance of supply networks, a gap in the literature, and provide a basis for the development of tools to aid their analysis and design., – The methodology involved the development of a configuration definition and mapping approach extending established strategic and firm level constructs to the network operational level. The resulting tools were tested and refined in a series of case studies across a range of sectors and value chain models. Supply network capability assessments, from the perspective of the focal firm, were then compared with their configuration profiles., – The configuration mapping tools were found to give new insights into the structure of supply networks and allow comparisons to be made across sectors and business models through the use of consistent and quantitative methods and common presentation. They provide the foundations for linking configuration to capability and performance, and contribute to supply network design and development by highlighting the intrinsic capabilities associated with different configurations., – Although multiple case networks have been investigated, the configuration exemplars remain suggestive models. The research suggests that a re‐evaluation of operational process excellence models is needed, where the link between process maturity and performance may require a configuration context., – Advantages of particular configurations have been identified with implications for supply network development and industrial policy., – The paper seeks to develop established strategic management configuration concepts to the analysis and design of supply networks by providing a robust operational definition of supply network configuration and novel tools for their mapping and assessment.

Exploitation or exploration in service business development?: Insights from a dynamic capabilities perspective

Purpose – The paper aims to explore how dynamic capabilities of sensing, seizing and reconfiguring shape the way in which service business is developed in a broad range of capital goods industries.Design/methodology/approach – The paper takes an interpretative multiple‐case study approach. It seeks to develop primary organizing themes around the key dynamic capabilities and support them with research propositions.Findings – The findings suggest that companies either exploit or explore the opportunities when it comes to service business development. Moreover, dynamic capabilities differ between the two approaches and predict which way a company chooses.Research limitations/implications – Research limitations are mainly due to the nature of qualitative research. The dynamic capabilities identified here are by no means exhaustive; rather, they indicate directions for future research.Practical implications – The research findings provide guidance to managers as to how the strategic shift towards services is i...

Testing manufacturing strategy formulation processes

Abstract The process of formulating and implementing manufacturing strategy is one of the key tasks for operations managers; however, it is extremely complex and not well understood. Over the years there have been many attempts to both prescribe and describe strategy formulation processes but the literature on the rigorous testing of prescribed processes is sparse. This paper discusses the testing of one such process for formulating manufacturing strategy, and reports findings. Two aspects are addressed: the initial testing of the process to assess feasibility, usability and utility; and more detailed testing to investigate factors which affect the implementation of the process. This detailed testing is being carried out as a preliminary step to investigating the tailoring of the process to different contextual factors. The paper begins by briefly outlining the strategy formulation process which is under test. This process has been developed in stages since 1987 and has been widely applied in various forms over this period. Having described the process, the paper then discusses testing problems and presents the rationale behind the testing approach chosen.