Performance measurement systems, competitive priorities, and advanced manufacturing technology

Abstract

Purpose -When acquiring advanced manufacturing technologies (AMT), the greatest caution should be taken regarding the performance measurement system to be used: the decision regarding new investments should not be conditioned by the excessive use of financial indicators to the detriment of the strategic objectives that motivated the investments. It is intended to analyze the aeronautical sector, for which the purchase of AMT is qualifying criteria, with two intentions: first, to identify the performance measurement systems that are used, and second, to test their correspondence with the objectives that motivated the investments. Design/methodology/approach -A survey of the 20 plants in the population was conducted via a postal questionnaire plus a structured interview. The unit of analysis has been maintained through the triangulation of data sources. Findings -The findings suggest that both financial and non-financial indicators are used, with the latter gaining predominance over the former on some occasions, even though there is no clear correspondence between strategy and the measurement of performance. In the light of the findings, the question of what inspires a company's performance measurement system is still open, especially in those cases where there is no explicit strategy. With regard to practical implications, what seems to be indispensable is an improvement in the determination of the critical variables that should be used to measure performance. Research limitations/implications -Being valuable for academics and practitioners, this contribution relies, rather, on the possibility of a logical extrapolation to circumstances where the findings might apply, and researchers can judge whether the particular findings would be valid. Originality/value -Provides new evidence on the adaptation of the make-up and combination of the type of performance measures currently used by plants in the aeronautical industry, one of the sectors in which technological innovation is of the utmost importance.

A study of supply chain integration in the aeronautics sector

“…The formula of shared risks and costs provides the necessary incentives for customer and suppliers to work together and manage complex inter-company interfaces efficiently. On the one hand, each of the companies individually seeks the best performance from the transactions for which they are jointly responsible, seeking to cut down internal costs (Sacrista´n Dı´az et al 2005). On the other hand, there is interdependence between the organisations and a shared interest in achieving the success of the SC as a whole.…”

Advanced manufacturing technology adoption: an integrated approach

“…There is an increasing need for cooperative models that integrates the short‐ and long‐term approaches for the strategy process (Killen et al , 2004). The firms, used to operate into the fordist‐taylorist paradigm, whose main goal was “cost” reduction and efficiency improvement; nowadays, they are facing a new reality, where “flexibility,” “quality,” “time” and “innovativeness,” along with “cost,” are the competitive factors that define the competition pattern (Swink and Nair, 2006; Dangayach and Deshmukh, 2005; Sacristán Díaz et al , 2005).…”

Performance evaluation of the Indian plastic processors supply chain: Implementing lean and green philosophies

“…Performance of the supply chain pertains to sustainable policy because competitiveness within the supply chain should be related to organisational goals. [12], [33] Recommended that, within a PMS, monetary and economic indicators can be complemented by non-monetary measures linked to environment, social, health and safety with the integration of strategic objectives of the management. Whereas, [2] observed PMS as a practice with two functions: communicating methods and controlling performance.…”