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Lean and performance measurement

Lean and performance measurement Purpose – Ostensibly, less than 10 per cent of UK organisations accomplish successful lean implementations. A refined system to the one offered by the balanced scorecard is needed. The purpose of this paper is to propose a robust system that not only focuses on the intangible and intellectual assets but also embraces various time horizons and the interests of multiple stakeholders. Design/methodology/approach – The dynamic multi‐dimensional performance (DMP) framework has been adapted which enables organisations to successfully gauge, in a holistic approach, whether lean has in fact proven successful in their respective organisations. Findings – The DMP framework embracing five dimension proves to be more robust than its predecessors and stresses the need to utilise a smaller set of multidimensional metrics which are closely aligned to an organisation's strategies. Research limitations/implications – Intangible assets have become the major source for competitive advantage. Tangible assets accounted for a book value of less than 20 per cent of companies' market values in 2000. Organisations need to promote a portfolio of measures directed at both the internal and external environments. Practical implications – Despite the popularity of the balanced scorecard, it has recently proven inadequate in certain circumstances. The proposal enables managers to bridge the gap between the real and aspired performance. Originality/value – The DMP model presented in this paper has generic appeal and can be applied to quite disparate organisations. It provides a good barometer for multiple time horizons and facilitates the examination of a wider view of organisational success. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Manufacturing Technology Management Emerald Publishing

Lean and performance measurement

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References (37)

Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
1741-038X
DOI
10.1108/17410380810877311
Publisher site
See Article on Publisher Site

Abstract

Purpose – Ostensibly, less than 10 per cent of UK organisations accomplish successful lean implementations. A refined system to the one offered by the balanced scorecard is needed. The purpose of this paper is to propose a robust system that not only focuses on the intangible and intellectual assets but also embraces various time horizons and the interests of multiple stakeholders. Design/methodology/approach – The dynamic multi‐dimensional performance (DMP) framework has been adapted which enables organisations to successfully gauge, in a holistic approach, whether lean has in fact proven successful in their respective organisations. Findings – The DMP framework embracing five dimension proves to be more robust than its predecessors and stresses the need to utilise a smaller set of multidimensional metrics which are closely aligned to an organisation's strategies. Research limitations/implications – Intangible assets have become the major source for competitive advantage. Tangible assets accounted for a book value of less than 20 per cent of companies' market values in 2000. Organisations need to promote a portfolio of measures directed at both the internal and external environments. Practical implications – Despite the popularity of the balanced scorecard, it has recently proven inadequate in certain circumstances. The proposal enables managers to bridge the gap between the real and aspired performance. Originality/value – The DMP model presented in this paper has generic appeal and can be applied to quite disparate organisations. It provides a good barometer for multiple time horizons and facilitates the examination of a wider view of organisational success.

Journal

Journal of Manufacturing Technology ManagementEmerald Publishing

Published: Jun 6, 2008

Keywords: Lean production; Performance measurement; Balanced scorecard

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