Balanced Key Performance Indicators in Product Development

Abstract

Abstract-In today's business environment many enterprises react to changing conditions by the implementation of lean production systems. Lean offers an approach to eliminate waste and increase customer value in all processes. In the past, the focus of lean has been on the production and is now enhanced to other processes in the enterprise, e.g. product development or sales & services. In particular research approaches, so called lean development, has been introduced to improve efficiency, effectiveness and the skills of staff and organization. Enterprises like Toyota, who work with lean principles in development, can develop products in significant shorter time-to-markets with higher quality and lower costs. Enterprises that applied lean to product development process are facing the challenge of defining key performance indicators to ensure the sustainability of the continuous improvement process. Therefore, the article gives an advice what requirements the performance indicators have to meet. Based on an analysis of 11 performance indicator systems the article shows that yet not all targets are covered by performance indicators. Thus the article shows an approach to develop an enterprise specific KPI-Set.

Identification of Key Performance Indicators in Project-Based Organisations through the Lean Approach

“…Lean is based on five fundamental principles: Defining value from the customer perspective, identifying the value streams, making the value flow, implementing pull-based production, and striving for perfection continuously [5]. It also focuses on waste elimination by improving process performances and value creation [5,8,18]. The term waste in lean context is defined as an event or process that does not reflect customers value or generate any added value to the final output [2].…”

“…The work of Dombrowski et al [8] proposed specific criteria of a measurement system for performance indicators in product development context. The criteria to be taken into account consists in: Relevance for the enterprise targets, quality data (based on the validity and timeliness of data), compatibility with the hierarchy, variability (react quickly to changes), periodicity, visualisation, and effort.…”

Organizational performance evaluation in intangible criteria: a model based on knowledge management and innovation management

“…Recent publications by Janes and Faganel (2013), Flipse et al (2013), Dombrowski, Schmidtchen, and Ebentreich (2013), May et al (2014), Sánchez (2014) and Galar, Berges, Sandborn, and Kumar (2014) are some of the latest examples that address KPIs and show this subject is being widely explored by the scientific community today.…”

Project performance prediction model linking agility and flexibility demands to project type

“…Process metrics measure the achievement of time (schedule), cost, and quality objectives (Janssen et al, 2011; Mir & Pinnington, 2014; Todorovic et al, 2013). At the design stage, the management of project requirements (goals) lies on the identification of inconsistencies between these requirements and the project execution (Dombrowski et al, 2013; Haponava & Al‐Jibouri, 2012). The components considered in this study are the operational, technical and financial performance of the project (Ajmal et al, 2010).…”