An Integrated Key Performance Measurement for Manufacturing Operations Management

Abstract

This paper proposes a comprehensive production performance measurement framework and illustrates the method to evaluate the performance and guide practitioners to make further improvement. The development comprises four steps. (1) Performance indicators derived from business excellence models are enumerated to provide the performance model: 74 indicators, which can be classified in terms of their characteristics, are identified in six criteria. (2) A multiple criteria decision-making approach based on the analytic hierarchical and network processes, which determine the weights of the criteria and indicators, is applied. In addition, this study introduced additional formulas to derive the final performance values. (3) A performance measurement framework that integrates the measurement and result analysis processes is implemented. (4) The proposed framework is verified through a case study. The results of the case study show that the proposed framework identifies the gaps and discrepancies among the management levels, enabling the determination of means for continuous improvement.