Integrating performance measurement, system dynamics, and problem-solving methods

Abstract

Purpose Transport logistics systems in companies with additional public service roles are complex and could benefit from new approaches to performance management. Existing approaches tend to be fragmented; thus, the purpose of this paper is to integrate balanced performance measures, a dynamics model, and the problem-solving method into a new model. Design/methodology/approach An integrated framework is developed by reviewing literature and synthesising attributes of performance measurement systems, system dynamics and problem-solving methods. The framework is then applied to a multiple-role company’s sea transportation system. The study uses statistical methods to identify performance indicators, management interviews with document study to develop a dynamics model, and simulation methods to formulate an improvement plan. Findings The performance measurement design stage allowed for the identification of balanced, aligned performance indicators, while the system dynamics model illuminated the impact of the system components’ interrelationships on performance output. The problem-solving method allowed for analysis of system performance, identification of constraints and formulation of a performance improvement plan. Practical implications This framework can help transport logistics system stakeholders in multiple-role companies avoid silo thinking, misaligned performance objectives, local optima and short-term solutions. Originality/value This study contributes to the existing body of research by introducing a novel framework integrating performance measurement, system dynamics and the problem-solving method. It also addresses a theoretical gap by showing how interconnecting components of sea transportation systems affect transport logistics performance.

Management Accounting Information Systems, Performance Measurement Methods and Reward Systems in Influencing Managerial Performance

“…The results of this research that have been carried out are in line with research from (Irfani et al, 2020) and (Pramesti & Putri, 2021), which states that the work measurement system has a significant positive effect on managerial performance. However, the study findings in this study are not in line with the research conducted by (Stojkić & Bošnjak, 2019) which states that performance measurement has a positive influence on managerial performance.…”

“…Another problem that makes companies have to focus more on managing and organizing managerial performance is the method of measuring the performance of their managers (Irfani et al, 2020). Performance measurement is a management tool used to improve the quality of decision making and accountability, as well as to assess the achievement of goals and objectives (Stojkić & Bošnjak, 2019).…”

Transportation performance improvement through lean thinking implementation

“…However, there is often significant hidden waste within transportation operations that might result in excess inventory to cover long transportation lead time (Taylor and Martichenko, 2006). According to Irfani et al (2019), the objective of transportation is to provide customer satisfaction in the upstream and downstream supply chain at the lowest cost. Therefore, Irfani et al (2019) argued that transportation cost efficiency is the one of performance metrics that should be measured.…”

“…In the meantime, Irfani et al (2019) argued that transportation performance not only focuses on operation efficiency for reducing cost but also must concern itself with effectiveness. In this context, Taylor and Martichenko (2006) included key metrics for lean transportation, including damage in transit, responsiveness, flexibility, accessibility of information and reliability of delivery schedules.…”

Key performance indicators for turboelectric distributed propulsion

“…Moreover, assessing how to maximise the performance, i.e. long-lasting, is a goal of this project to overcome the productivity challenges and as a problem-solving method (Irfani et al , 2019). This study collaborates to sustain the production system from manufacturing to the maintenance process.…”