Performance measurement systems, competitive priorities, and advanced manufacturing technology

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 occa...

[1]  R. Hensley.  A review of operations management studies using scale development techniques , 1999 .

[2]  Christopher O'Brien,et al.  Decision support tool for justifying alternative manufacturing and production control systems , 1999 .

[3]  Ravi Kathuria,et al.  Alignment of strategic priorities and performance: an integration of operations and strategic management perspectives , 2003 .

[4]  Stephen R. Rosenthal,et al.  Progress toward the “factory of the future” , 1984 .

[5]  Peter Milling.  Computer integrated manufacturing in German industry: aspirations and achievements , 1997 .

[6]  Srinivas Talluri,et al.  A cone-ratio DEA approach for AMT justification , 2000 .

[7]  Pankaj Ghemawat,et al.  Strategic Valuation of Investment Under Competition , 1999, Interfaces.

[8]  Gary D. Scudder,et al.  A review and classification of empirical research in operations management , 1998 .

[9]  P. Swamidass,et al.  Explaining manufacturing technology use, firm size and performance using a multidimensional view of technology , 1998 .

[10]  D. Liles,et al.  Economic and Financial Justification Methods for Advanced Automated Manufacturing: An Overview , 1992 .

[11]  Santiago García González,et al.  Dirección de operaciones: aspectos estratégicos en la producción y los servicios , 2005 .

[12]  Kulwant S. Pawar,et al.  Performance measurement for product design and development in a manufacturing environment , 1999 .

[13]  Peter T. Ward,et al.  Manufacturing strategy in context: environment, competitive strategy and manufacturing strategy , 2000 .

[14]  José Antonio Domínguez Machuca,et al.  Adopting and implementing advanced manufacturing technology: new data on key factors from the aeronautical industry , 2004 .

[15]  Peter T. Ward,et al.  The six Ps of manufacturing strategy , 1995 .

[16]  E. S. Buffa.  Research in Operations Management , 1980 .

[17]  Lawrence M. Corbett.  A comparative study of the operations strategies of globally- and domestically-oriented New Zealand manufacturing firms , 1996 .

[18]  Anne M. Lillis,et al.  The impact of manufacturing flexibility on management control system design , 1995 .

[19]  Shimon Y. Nof.  Next generation of production research:: Wisdom, collaboration, and society , 1999 .

[20]  D. C. Whybark,et al.  Is anybody listening? An investigation into popular advice and actual practices , 2003 .

[21]  C. Drury,et al.  New manufacturing technologies and management accounting systems: Some evidence of the perceptions of UK management accounting practitioners , 1994 .

[22]  V. Grover,et al.  An assessment of survey research in POM: from constructs to theory , 1998 .

[23]  M Kakati,et al.  Strategic evaluation of advanced manufacturing technology , 1997 .

[24]  J. D. Couger.  E pluribus computum , 1986 .

[25]  Jack R. Mkrkdtth,et al.  Justification techniques for advanced manufacturing technologies , 1986 .

[26]  S. MacDougall,et al.  Consider your options: changes to strategic value during implementation of advanced manufacturing technology , 2003 .

[27]  Stuart Laverick,et al.  Measuring corporate performance , 1994 .

[28]  Jack R. Meredith,et al.  The Strategic Advantages of the Factory of the Future , 1987 .

[29]  Richard L. Daniels,et al.  Integrating product mix and technology adoption decisions: a portfolio approach for evaluating advanced technologies in the automobile industry , 2001 .

[30]  Roberto Filippini,et al.  Operations management research: some reflections on evolution, models and empirical studies in OM , 1997 .

[31]  Roger W. Schmenner,et al.  Performance Measures: Gaps, False Alarms, and the “Usual Suspects” , 1994 .

[32]  P. Swamidass.  Empirical Science: New Frontier in Operations Management Research , 1991 .

[33]  R. Kaplan,et al.  The balanced scorecard--measures that drive performance. , 2015, Harvard business review.

[34]  P. Adler.  New Technologies, New Skills , 1986 .

[35]  Andy Neely,et al.  Performance measurement system design , 1995 .

[36]  John K. Shank.  Analysing technology investments-from NPV to Strategic Cost Management (SCM) , 1996 .

[37]  Andy Neely,et al.  Designing performance measures: a structured approach , 1997 .

[38]  Thomas Y. Choi,et al.  Survey research in operations management: historical analyses , 2003 .

[39]  Sujatha Perera,et al.  Customer-focused manufacturing strategy and the use of operations-based non-financial performance measures: A research note , 1997 .

[40]  Mark Pagell,et al.  Measurement issues in empirical research: improving measures of operations strategy and advanced manufacturing technology , 2000 .

[41]  Richard B. Chase,et al.  A classification and evaluation of research in operations management , 1980 .

[42]  James S. Noble,et al.  The changing basis of performance measurement , 1996 .

[43]  David Lei,et al.  Computer‐integrated Manufacturing (CIM): Redefining the Manufacturing Firm into a Global Service Business , 1991 .

[44]  Umit Bititci,et al.  Strategy Management through Quantitative Modelling of Performance Measurement Systems , 2001 .

[45]  Kenneth K. Boyer,et al.  Strategic consensus in operations strategy , 1999 .

[46]  Andy Neely,et al.  The forces that shape organisational performance measurement systems:: An interdisciplinary review , 1999 .

[47]  Stefano Tonchia,et al.  Performance measurement systems - Models, characteristics and measures , 2001 .

[48]  E. Karsak,et al.  Fuzzy multi-criteria decision-making procedure for evaluating advanced manufacturing system investments , 2001 .

[49]  Neil D. Burns,et al.  Behavioural consequences of performance measures in cellular manufacturing , 1997 .

[50]  George Mechling,et al.  Exploiting AMT in small manufacturing firms for global competitiveness , 1995 .

[51]  P. Swamidass,et al.  Strategy, advanced manufacturing technology and performance: empirical evidence from U.S. manufacturing firms , 2000 .

[52]  Umit Bititci,et al.  Integrated performance measurement systems: a development guide , 1997 .

[53]  A. Roth,et al.  A taxonomy of manufacturing strategies , 1994 .

[54]  M. H. Small,et al.  Investment justification of advanced manufacturing technology: An empirical analysis , 1995 .

[55]  Kenneth K. Boyer,et al.  Approaches to the factory of the future. An empirical taxonomy , 1996 .

[56]  Andy Neely,et al.  Realizing Strategy through Measurement , 1994 .