Performance Indicators in Sourcing : Case: Mainospyörä Ltd

The business environment has rapidly become more global and more competitive. It sets new requirements for the company management. It is not enough to look at the financial information of the company, but one need to analyse also the internal processes as well. Sourcing exists in every company. It is no longer just a supporting function in a company chain of operations. By sourcing company can affect the profitability of the company in both direct and indirect ways The thesis overviewed the role of strategic accounting, sourcing and performance measurements in particularly, in company strategic steering. The study is qualitative, where the meaning was to describe true life. In the same time it is an explanatory case study. The aim of the study was to build up a set of sourcing performance indicators for the case company.

Key performance indicators for supplier and assortement evaluation

Tutkimuksen tavoite oli selvittää suorituskyvyn mittaamista, mittareita ja niiden suunnittelua tukku- ja jakeluliiketoiminnassa. Kriittisten menestystekijöiden mittarit auttavat yritystä kohti yhteistä päämäärää. Kriittisten menestystekijöiden mittarit ovat usein yhdistetty strategiseen suunnitteluun ja implementointiin ja niillä on yhtäläisyyksiä monien strategisten työkalujen kun Balanced scorecardin kanssa. Tutkimus ongelma voidaan esittää kysymyksen muodossa. •Mitkä ovat Oriola KD:n pitkänaikavälin tavoitteita tukevat kriittisten menestystekijöiden mittarit (KPIs) toimittajan ja tuotevalikoiman mittaamisessa? Tutkimus on jaettu kirjalliseen ja empiiriseen osaan. Kirjallisuus katsaus käsittelee aikaisempaa tutkimusta strategian, toimitusketjun hallinnan, toimittajan arvioinnin ja erilaisten suorituskyvyn mittaamisjärjestelmien osalta. Empiirinen osuus etenee nykytila-analyysista ehdotettuihin kriittisten menestystekijöiden mittareihin, jotka ovat kehitetty kirjallisuudesta löydetyn mallin avulla. Tutkimuksen lopputuloksena ovat case yrityksen tarpeisiin kehitetyt kriittisten menestystekijöiden mittarit toimittajan ja tuotevalikoiman arvioinnissa.

Key performance indicators for successful metadata governance

Metadata in increasing levels of sophistication has been the most powerful concept used in management of unstructured information ever since the first librarian used the Dewey decimal system for library classifications. It remains to be seen, however, what the best approach is to implementing metadata to manage huge volumes of unstructured information in a large organization. Also, once implemented, how is it possible to track whether it is adding value to the company, and whether the implementation has been successful? Existing literature on metadata seems to either focus too much on technical and quality aspects or describe issues with respect to adoption for general information management initiatives. This research therefore, strives to contribute to these gaps: to give a consolidated framework for striving to understand the value added by implementing metadata. The basic methodology used is that of case study, which incorporates aspects of design science, surveys, and interviews in order to provide a holistic approach to quantitative and qualitative analysis of the case. The research identifies the various approaches to implementing metadata, particularly studying the one followed by the unit of analysis of case study, a large company in the Oil and Gas Sector. Of the three approaches identified, the selected company already follows an approach that appears to be superior. The researcher further explores its shortcomings, and proposes a slightly modified approach that can handle them. The research categorically and thoroughly (in context) identifies the top effectiveness criteria, and corresponding key performance indicators(KPIs) that can be measured to understand the level of advancement of the metadata management initiative in the company. In an effort to contrast and have a basis of comparison for the findings, the research also includes views from information managers dealing with core structured data stored in ERPs and other databases. In addition, the results include the basic criteria that can be used to evaluate metrics, in order to classify a metric as a KPI.

Role of Capabilities in Purchasing and Supply Management Performance

The objective of this thesis was to study the role of capabilities in purchasing and supply management. For the pre-understanding of the research topic, purchasing and supply management development and the multidimensional, unstructured and complex nature of purchasing and supply management performance was studied in literature review. In addition, a capability-based purchasing and supply management performance framework were researched and structured for the empirical research. Due to the unstructured nature of the research topic, the empirical research is three-pronged in this study including three different research methods: the Delphi method, semi-structured interview, and case research. As a result, the purchasing and supply management capability assessment tool was structured to measure current level of capabilities and impact of capabilities on purchasing and supply management performance. The final results indicate that capabilities are enablers of purchasing and supply management performance, and therefore critical to purchasing and supply performance.

Modelling the simultaneous effects of intellectual capital and knowledge management on the organisational performance of Finnish companies

The aim of this study was to contribute to the current knowledge-based theory by focusing on a research gap that exists in the empirically proven determination of the simultaneous but differentiable effects of intellectual capital (IC) assets and knowledge management (KM) practices on organisational performance (OP). The analysis was built on the past research and theoreticised interactions between the latent constructs specified using the survey-based items that were measured from a sample of Finnish companies for IC and KM and the dependent construct for OP determined using information available from financial databases. Two widely used and commonly recommended measures in the literature on management science, i.e. the return on total assets (ROA) and the return on equity (ROE), were calculated for OP. Thus the investigation of the relationship between IC and KM impacting OP in relation to the hypotheses founded was possible to conduct using objectively derived performance indicators. Using financial OP measures also strengthened the dynamic features of data needed in analysing simultaneous and causal dependences between the modelled constructs specified using structural path models. The estimates were obtained for the parameters of structural path models using a partial least squares-based regression estimator. Results showed that the path dependencies between IC and OP or KM and OP were always insignificant when analysed separate to any other interactions or indirect effects caused by simultaneous modelling and regardless of the OP measure used that was either ROA or ROE. The dependency between the constructs for KM and IC appeared to be very strong and was always significant when modelled simultaneously with other possible interactions between the constructs and using either ROA or ROE to define OP. This study, however, did not find statistically unambiguous evidence for proving the hypothesised causal mediation effects suggesting, for instance, that the effects of KM practices on OP are mediated by the IC assets. Due to the fact that some indication about the fluctuations of causal effects was assessed, it was concluded that further studies are needed for verifying the fundamental and likely hidden causal effects between the constructs of interest. Therefore, it was also recommended that complementary modelling and data processing measures be conducted for elucidating whether the mediation effects occur between IC, KM and OP, the verification of which requires further investigations of measured items and can be build on the findings of this study.

Performance Measurement as Part of Management

To achieve success in a constantly changing environment and with ever-increasing competition, companies must develop their operations continuously. To do this, they must have a clear vision of what they want to be in the future. This vision can be attained through careful planning and strategising. One method of transforming a strategy and vision into an everyday tool used by employees is the use of a balanced performance measurement system. The importance of performance measurement in the implementation of companies' visions and strategies has grown substantially in the last ten years. Measures are derived from the company's critical success factors and from many different perspectives. There are three time dimensions: past, present and future. Many such performance measurement systems have been created since the 1990s. This is a case study whose main objective is to provide a recommendation for how the case company could make use of performance measurement to support strategic management. To answer this question, the study uses literature-based research and empirical research at the case company's premises. The theoretical part of the study consists of two sections: introducing the Balanced Scorecard and discussing how it supports strategic management and change management. The empirical part of this study determines the company's present performance measurement situation through interviews in the company. The study resulted in a recommendation to the company to start developing the Balanced Scorecard system. By setting up this kind process, the company would be able to change its focus more towards the future, beginning to implement a more process-based organisation and getting its employees to work together towards common goals.

Supply chain performance management system

The purpose of the study is to determine general features of the supply chain performance management system, to assess the current state of performance management in the case company mills and to make proposals for improvement – how the future state of performance management system would look like. The study covers four phases which consist of theory and case company parts. Theoretical review gives understanding about performance management and measurement. Current state analysis assesses the current state of performance management in the mills. Results and proposals for improvement are derived from current state analysis and finally the conclusions with answers to research questions are presented. Supply chain performance management system consists of five areas: perfor-mance measurement and metrics, action plans, performance tracking, performance dialogue and rewards, consequences and actions. The result of the study revealed that all mills were quite average level in performance management and there is a room for improvement. Created performance improvement matrix served as a tool in assessing current performance management and could work also as a tool in the future in mapping the current state after transformation process. Limited harmonization was revealed as there were different ways to work and manage performance in the mills. Lots of good ideas existed though actions are needed to make a progress. There is also need to harmonize KPI structure.

Improving the Supply Chain Performance Management System in a Finnish paper mill

This Master’s Thesis studies performance management system and its benefits, risks and costs. Objective of the thesis is to describe and evaluate currently used supply chain performance management system (SCPMS) in a Finnish paper mill and its interfaces with its business unit’s SCPMS. As a result, the host company has improvement road map for improving its SCPMS. Used SCPMS in the host company and its interfaces to business unit’s SCPMS are described based on interviews held in the host company and the business unit. Evaluation of the host company’s SCPMS is based on literature study. For improvement road map, three areas in need of improvements are chosen. The study shows the need of high level top management commitment in successful performance management system implementation and usage, especially when the system is deployed to lower levels in the organization.

Performance measurement and management in a collaborative network

This study concerns performance measurement and management in a collaborative network. Collaboration between companies has been increased in recent years due to the turbulent operating environment. The literature shows that there is a need for more comprehensive research on performance measurement in networks and the use of measurement information in their management. This study examines the development process and uses of a performance measurement system supporting performance management in a collaborative network. There are two main research questions: how to design a performance measurement system for a collaborative network and how to manage performance in a collaborative network. The work can be characterised as a qualitative single case study. The empirical data was collected in a Finnish collaborative network, which consists of a leading company and a reseller network. The work is based on five research articles applying various research methods. The research questions are examined at the network level and at the single network partner level. The study contributes to the earlier literature by producing new and deeper understanding of network-level performance measurement and management. A three-step process model is presented to support the performance measurement system design process. The process model has been tested in another collaborative network. The study also examines the factors affecting the process of designing the measurement system. The results show that a participatory development style, network culture, and outside facilitators have a positive effect on the design process. The study increases understanding of how to manage performance in a collaborative network and what kind of uses of performance information can be identified in a collaborative network. The results show that the performance measurement system is an applicable tool to manage the performance of a network. The results reveal that trust and openness increased during the utilisation of the performance measurement system, and operations became more transparent. The study also presents a management model that evaluates the maturity of performance management in a collaborative network. The model is a practical tool that helps to analyse the current stage of the performance management of a collaborative network and to develop it further.

Data management as a part of performance management: Case study about production reporting development project

Because of the increased availability of different kind of business intelligence technologies and tools it can be easy to fall in illusion that new technologies will automatically solve the problems of data management and reporting of the company. The management is not only about management of technology but also the management of processes and people. This thesis is focusing more into traditional data management and performance management of production processes which both can be seen as a requirement for long lasting development. Also some of the operative BI solutions are considered in the ideal state of reporting system. The objectives of this study are to examine what requirements effective performance management of production processes have for data management and reporting of the company and to see how they are effecting on the efficiency of it. The research is executed as a theoretical literary research about the subjects and as a qualitative case study about reporting development project of Finnsugar Ltd. The case study is examined through theoretical frameworks and by the active participant observation. To get a better picture about the ideal state of reporting system simple investment calculations are performed. According to the results of the research, requirements for effective performance management of production processes are automation in the collection of data, integration of operative databases, usage of efficient data management technologies like ETL (Extract, Transform, Load) processes, data warehouse (DW) and Online Analytical Processing (OLAP) and efficient management of processes, data and roles.

Performance management through innovation capability in SMEs

Small and medium-sized enterprises (SMEs) are assuredly important to maintain strong economic growth. How to manage and maintain SMEs’ performance is a sizable challenge, and requires an understanding of the drivers of performance. Innovation capability has been suggested to be one of these key drivers. In order to manage innovation capability– performance relationship, it has to be measured. SMEs may have distinct characteristics that separate them being just smaller versions of large firms. Performance measurement and management of innovation capability is challenging, because SMEs usually have some drawbacks compared to large firms. Thus, it is unclear whether theories developed to understand large firms apply to SMEs. This research contributes to the existing discussion on performance management through innovation capability in the SME context. First, it aims at increasing understanding of the role of innovation capability in performance management. Second, it aims at clarifying the role of performance measurement in developing innovation capability. Thus, the main objective of the research is to study how to manage performance through measuring and managing innovation capability. The thesis is based on five research articles that follow a positivist approach. From a methodological point of view, quantitative and complementing conceptual methods of data collection are utilized. This research indicates that the performance management and measurement play a significant role in innovation capability in SMEs. This research makes three main contributions. First, it gives empirical evidence on the connection between innovation capability and SME performance. Second, it illustrates the connection between performance measurement and innovation capability. Thirdly, it clarifies how to measure the relationship between innovation capability and performance.

Improving reporting management with relational database management system

Data management consists of collecting, storing, and processing the data into the format which provides value-adding information for decision-making process. The development of data management has enabled of designing increasingly effective database management systems to support business needs. Therefore as well as advanced systems are designed for reporting purposes, also operational systems allow reporting and data analyzing. The used research method in the theory part is qualitative research and the research type in the empirical part is case study. Objective of this paper is to examine database management system requirements from reporting managements and data managements perspectives. In the theory part these requirements are identified and the appropriateness of the relational data model is evaluated. In addition key performance indicators applied to the operational monitoring of production are studied. The study has revealed that the appropriate operational key performance indicators of production takes into account time, quality, flexibility and cost aspects. Especially manufacturing efficiency has been highlighted. In this paper, reporting management is defined as a continuous monitoring of given performance measures. According to the literature review, the data management tool should cover performance, usability, reliability, scalability, and data privacy aspects in order to fulfill reporting managements demands. A framework is created for the system development phase based on requirements, and is used in the empirical part of the thesis where such a system is designed and created for reporting management purposes for a company which operates in the manufacturing industry. Relational data modeling and database architectures are utilized when the system is built for relational database platform.

Value added KPI service delivery with quality function deployment: Multiple case study in asset & real estate management

The aim of this study is to investigate value added service concept for an asset and real estate management case company. The initial purpose was to recognize the most value adding key performance indicators (KPIs) information delivered for its customers, real estate investors with value added service. The multiple case study strategy included two focus group interviews with five case interviews in total. Additionally, quality function deployment (QFD) was used in order to form up the service process. The study starts with introduction and methodology explaining the demand for the thesis study. The subsequent chapter presents the theoretical background on real estate management KPIs in four main points of views and quality function deployment from the service development point of view. The chapter also defines research gap for the case study. According to the case study interviews, the most favored KPIs to deliver for the clients are income maturity of lease agreements and leasing activity. These KPIs and quality characteristics are translated into the QFD. In total, the service QFD explains the service planning, process control, and action plan phases.

Developing Supply Chain Process Management and Measurement in Global Manufacturing Company

The objective of this research is to create a current state analysis of pulp supply chain processes from production planning to deliveries to customers. A cross-functional flowchart is being used to model these processes. These models help finding key performance indicators (KPIs) which enable examinations of the supply chain efficiency. Supply chain measures in different processes reveal the changes need processes that affect the whole supply chain and its efficiency and competitiveness. Structure of pulp supply chain differs from most of the other supply chains. The fact that there are big volumes of bulk products, small product variations and supply forecasts are made for the year ahead make the difference. This factor brings different benefits but also challenges when developing supply chain. This thesis divides pulp supply chain in three different main categories: production planning, warehousing and transportation. It provides tools for estimating the functionality of supply chain as well as developing the efficiency for different functions of supply chain. By having a better understanding of supply chain processes and measurement the whole supply chain structure can be developed significantly.