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The appropriate use of performance measurement in non‐production activity The case of engineering design

The appropriate use of performance measurement in non‐production activity The case of engineering... Notes limitations to measuring the performance of design activity in particular, and non-production activities in general. First, validity and reliability in specific measures are strongly negatively correlated, making it hard to achieve both. Second, outcome measures are jointly determined by engineering design and other activities to varying degrees, and this problem of shared outcomes is only partly reduced by measuring at higher levels of aggregation. Third, there is no definite stopping rule for engineering design activity, yet unambiguous outcome measures rely on the existence of such a rule. Fourth, outcomes attributable to engineering design can sometimes only be measured a long time after completion of the activity, making them ineffective for most managerial purposes. There are also considerable problems in properly accounting for environmental variables. However, the use of performance measures have some benefits, e.g. correcting wrong inferences among engineering managers. Results point to the appropriate use of performance measurement in engineering design for raising questions and detecting discrepancies in performance at aggregate levels. They suggest that using measurement is inappropriate for managerial control, for attributing results to engineers or the environment, and for concluding problem solving activities. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Operations & Production Management Emerald Publishing

The appropriate use of performance measurement in non‐production activity The case of engineering design

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References (43)

Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0144-3577
DOI
10.1108/01443570010308103
Publisher site
See Article on Publisher Site

Abstract

Notes limitations to measuring the performance of design activity in particular, and non-production activities in general. First, validity and reliability in specific measures are strongly negatively correlated, making it hard to achieve both. Second, outcome measures are jointly determined by engineering design and other activities to varying degrees, and this problem of shared outcomes is only partly reduced by measuring at higher levels of aggregation. Third, there is no definite stopping rule for engineering design activity, yet unambiguous outcome measures rely on the existence of such a rule. Fourth, outcomes attributable to engineering design can sometimes only be measured a long time after completion of the activity, making them ineffective for most managerial purposes. There are also considerable problems in properly accounting for environmental variables. However, the use of performance measures have some benefits, e.g. correcting wrong inferences among engineering managers. Results point to the appropriate use of performance measurement in engineering design for raising questions and detecting discrepancies in performance at aggregate levels. They suggest that using measurement is inappropriate for managerial control, for attributing results to engineers or the environment, and for concluding problem solving activities.

Journal

International Journal of Operations & Production ManagementEmerald Publishing

Published: Mar 1, 2000

Keywords: Engineering; Design; Management control; Goals

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