Exploring the performance effects of performance measurement system use in maintenance process

Purpose – The intended function of performance measurement is to support the effective management of an organisation and the improvement of organisational performance. However, how performance measurement should be used operationally to support the achievement of improved performance is not self-evident. The purpose of this paper is to examine the operational use of performance measurement in practice and to describe how different use practices contribute to improved performance. Design/methodology/approach – The authors conducted an exploratory single case study in a maintenance process. Data were collected using a mixed methods approach that encompassed qualitative meetings and interviews (identification of usage practices) followed by a quantitative survey (elaboration of usage practices and their performance effects). Findings – Three usage practices are relevant: Inspect and Improve, Motivate, and Decision Making. Improved performance is best achieved through motivational and supportive improvement u...

[1]  Andy Neely,et al.  Designing, implementing and updating performance measurement systems , 2000 .

[2]  J. Hair.  Multivariate data analysis , 1972 .

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

[4]  A. Neely,et al.  WHY MEASUREMENT INITIATIVES FAIL , 2000 .

[5]  Jussi Karhu,et al.  How to communicate measurement information successfully in small and medium-sized enterprises: a regression model , 2007, Int. J. Inf. Qual..

[6]  D. Barnes,et al.  Historical analysis of performance measurement and management in operations management , 2007 .

[7]  Matthew B. Miles,et al.  Qualitative Data Analysis: An Expanded Sourcebook , 1994 .

[8]  Aditya Parida,et al.  Development of a multi‐criteria hierarchical framework for maintenance performance measurement (MPM) , 2007 .

[9]  Mike Kennerley,et al.  Managing through measures: a study of impact on performance , 2005 .

[10]  Zahir Irani,et al.  A framework for managing maintenance using performance measurement systems , 2001 .

[11]  Antonio Davila,et al.  Performance Measurement and Control Systems for Implementing Strategy: Text and Cases , 1999 .

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

[13]  Umit S. Bititci,et al.  Implementation and impact of IT-supported performance measurement systems , 2005 .

[14]  K. Eisenhardt.  Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[15]  D. Larcker,et al.  Coming up short on nonfinancial performance measurement. , 2003, Harvard business review.

[16]  Ludo Gelders,et al.  Development of maintenance function performance measurement framework and indicators , 2011 .

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

[18]  Steven A. Melnyk,et al.  Metrics and performance measurement in operations management: dealing with the metrics maze , 2004 .

[19]  Steve Mason,et al.  Towards a definition of a business performance measurement system , 2007 .

[20]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[21]  Mike Bourne,et al.  Explaining the effects of performance measurement on performance: An organizational routines perspective , 2011 .

[22]  Barbara B. Flynn,et al.  An exploratory study of the nature of cumulative capabilities , 2004 .

[23]  Lawrence D. Fredendall,et al.  Evaluating the Deming Management Model of Total Quality in Services , 2004, Decis. Sci..

[24]  André de Waal,et al.  Behavioral factors important for the successful implementation and use of performance management systems , 2003 .

[25]  Sai S. Nudurupati,et al.  Dynamics of performance measurement and organizational culture , 2006 .

[26]  Lucrezia Songini,et al.  Performance measurement systems in after-sales service: an integrated framework , 2007 .

[27]  Uday Kumar,et al.  Maintenance performance measurement (MPM): issues and challenges , 2006 .

[28]  Jasper L. Coetzee.  A holistic approach to the maintenance “problem” , 1999 .

[29]  R. Kaplan,et al.  Using the balanced scorecard as a strategic management system , 1996 .

[30]  M. Bourne,et al.  Factors that play a role in “managing through measures” , 2003 .

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

[32]  D. Tranfield,et al.  Developing Design Propositions through Research Synthesis , 2008 .

[33]  Jeroen P. van den Berg,et al.  Improving operational performance by influencing shopfloor behavior via performance management practices , 2011 .

[34]  Jean Hartley,et al.  Case study research , 2004 .

[35]  T. Jambulingam,et al.  Entrepreneurial orientation as a basis for classification within a service industry: the case of retail pharmacy industry , 2005 .

[36]  Timothy R. Hinkin.  A Review of Scale Development Practices in the Study of Organizations , 1995 .

[37]  Christopher A. Voss,et al.  Case research in operations management , 2002 .

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

[39]  S. Snell,et al.  Integrated Manufacturing and Job Design: Moderating Effects of Organizational Inertia , 1991 .