A Framework of Performance Measurement System for Manufacturing Company

Wandebori

et al. 2022

Preprint

Self Cite

Agile has grown in popularity over the last decade as a new management approach to performance. The term refers to the observation that the rate of business change was rapidly outpacing the traditional organization’s ability to adapt. Deploying agile methodology aims to transform a company into a faster, more flexible, and more responsive organization, though it involves risk in highly hazardous operations. Therefore, this study aimed to develop a framework for agile transformation adaptation in an oil and gas company. The development uses a system thinking approach with Soft System Dynamic Methodology (SSDM) supported with the Mckinsey 7S model. This methodology was selected due to the complexity of change processes and the plural interrelationship among stakeholders. The framework proposed four variables that consist of strategy prioritization, strategy alignment, servant leadership, and governance process, as critical success factors in agile transformation adaption in the oil and gas operation for further enhancement in the later stage of the research.

Section: Performance Measurementmentioning

confidence: 99%

Develop a framework using system thinking model on agile transformation in oil and gas company operation: A conceptual framework

Darusulistyo

Wandebori

et al. 2022

Preprint

Self Cite

“…After noting that the BSC lacks a stakeholder focus, Neely et al (1995) developed the performance prism, a new PMS framework. Additionally, Wibisono (2003) considered the limited number of PMS frameworks supported by a knowledge-based approach and proposed a new PMS framework supported by a knowledge-based system, or the knowledge-based performance measurement system (KB-PMS). All of those frameworks can act as guidance in designing corporate PMS.…”

Section: Literature Reviewmentioning

confidence: 99%

Logistics performance measurement framework for companies with multiple roles

Irfani

Basri

2019

MBE

Self Cite

Purpose Companies with multiple roles, as both a profit generator and public service provider, have specific characteristics that differentiate them from single-role companies. However, literature suggests that no performance measurement framework exists to fully suit the characteristics of such companies. This study aims to develop a novel performance-measuring framework to manage logistics performance in multiple-role companies. Design/methodology/approach The framework is developed by combining a literature review and a case study approach as applied to a company with multiple roles. The case study is conducted to identify the characteristics of multiple-role companies, the factors that potentially affect such companies’ logistics performance and criteria for a new framework. The literature review identifies the concepts, performance attributes and indicators from existing frameworks with the potential for incorporation and synthesis in the new framework. Findings This study identified several characteristics, performance drivers and criteria for a logistics performance-measuring framework for multiple-role companies. Additionally, this study successfully developed a new logistics performance-measuring framework that consists of eight performance management stages and an aggregated index to measure overall logistics performance. Practical implications The proposed logistics performance-measuring methodology provides useful guidance for stakeholders of multiple-role companies to plan, organize, execute and evaluate logistics performance. Originality/value This research fills a theoretical gap by explaining the characteristics of logistics systems in multiple-role companies, as well as the factors that may affect such companies’ logistics performance. Further, the proposed framework contributes to academia by integrating performance attributes from several available frameworks to manage objective conflicts, dynamism issues and the inconsistent performance evaluations that exist in companies with multiple roles.

“…After noting that the BSC lacks a stakeholder focus, Neely et al (1995) developed the performance prism, a new PMS framework. Additionally, Wibisono (2003) considered the limited number of PMS frameworks supported by a knowledge-based approach and proposed a new PMS framework supported by a knowledge-based system or the knowledge-based performance measurement system (KB-PMS). All of these frameworks were initially designed to measure corporate performance in all types of industries that generally only have one role.…”

Section: Literature Reviewmentioning

confidence: 99%

Design of a logistics performance management system based on the system dynamics model

Irfani

Basri

2019

MBE

Self Cite

Purpose Logistics systems used in companies that perform multiple roles are expected to be able to manage conflicting objectives. Nevertheless, the literature suggests that many existing logistics performance measurement system (PMS) frameworks are not optimized to provide mechanisms to reveal dynamic relationships between conflicting performance indicators. The purpose of this paper is to develop a new logistics PMS by linking the system dynamics model with a set of balanced performance indicators. Design/methodology/approach The logistics PMS is developed through a literature review and case study of a company that plays multiple roles. The interrelationships between logistics factors and their links to end results are modeled in diagrams through in-depth interviews with stakeholders. The developed model is then used to build a simulation tool to analyze factors that cause poor performance. Findings The new logistics PMS developed by incorporating system dynamics offers decision makers ways to identify dynamic relationships among factors and conflicting indicators, in turn helping them to understand holistic logistics performance, objectively analyze why logistics systems perform in a certain way and foster a common shared view. Practical implications Stakeholders of companies that play multiple roles can use the new PMS model to comprehensively evaluate the performance of logistics systems. In addition, the increased visibility of logistics systems may support decision-making while preventing local optimization. Originality/value A logistical PMS based on the system dynamics model for managing logistics systems in companies performing multiple roles has not yet been identified. This paper fills this theoretical gap and contributes to the academic literature by proposing a novel PMS model based on the system dynamics model to address the limitations of existing PMS frameworks.