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.

Marketing performance measurement in the marketing-finance interface

Marketing and finance are both facing challenges in the constantly changing business environment. Finance is challenged to change its role from cost control to value-adding business partner while marketing needs to be able to demonstrate its accountability so how it contributes to firm performance. Finance is the key partner for marketing to prove its impact by helping marketing to measure its actions. By doing so, finance can also emphasize its business partner role. There is not a lot of research conducted of the relationship between marketing and finance departments. The aim of this study is to investigate how the professional differences of marketing and finance and their forms of cooperation affect marketing performance measurement. Literature of marketing and finance disciplines, their cooperation, performance implications of their interface as well as the roles of marketing performance measurement, performance measurement system and measures were reviewed. This research was conducted as a qualitative case study among senior management of marketing and finance in the sporting goods company. The data collected through semi-structured interviews, participant observation and secondary data was described and classified and connections were made. The results of the study show that the nature of marketing and finance disciplines has many effects on their cooperation and performance measurement. Due to the ambiguous nature of marketing, measuring its performance is still seen as a challenge but digitalization is helping the measurement. It was indicated that marketing and finance professionals need to have different skillsets in order to perform their roles effectively and thus cooperation is needed. Marketing performance needs to be measured with both financial and nonfinancial measures. Both marketing and finance interviewees highlighted the importance of marketing measures over financial measures. Measuring marketing performance comprehensively is seen as a challenge since marketing and finance cooperation is still shaped by the cost control and budget management roles, rather than performance measurement. We recognized three constraints affecting this cooperation and performance measurement: people, time and software. If marketing and finance would develop deeper cooperation, they could create comprehensive performance measurement system that improves organizational performance.

Performance measurement review: a comparison between English and Italian companies

Il sistema di misurazione delle performance (PMS) ha ricevuto particolare attenzione dalla ricerca in ambito accademico e dalle aziende che ogni anno investono risorse nell’implementazione e nel miglioramento di questo strumento. I ruoli assegnati al PMS possono essere: misurazione della performance, implementazione della strategia, comunicazione, allineamento dei comportamenti, apprendimento e miglioramento. Queste differenti finalità sottolineano quanto sia strategica un’efficace implementazione di tale strumento. Negli ultimi anni le aziende si trovano a dover competere in ambienti sempre più turbolenti e mutevoli. La capacità di adattarsi al cambiamento è fondamentale, pertanto anche il PMS deve essere aggiornato per garantire un’implementazione di Key Performance Indicators (KPIs) che siano appropriati e rilevanti, considerando le nuove priorità aziendali e le condizioni al contorno. Questa tesi ha come obiettivo quello di analizzare la revisione del PMS, in quanto un inappropriato set di KPIs implementati possono causare un indebolimento del potenziale di tale strumento ed ancor peggio un fallimento degli investimenti riguardanti tale strumento. L’approccio metodologico di questa tesi è un multiple case-study. Per avere una visione più ampia di come viene sviluppata la revisione del PMS nella pratica si è deciso di inserire nel campione aziende di grandi dimensioni operanti in differenti settori industriali. Le informazioni raccolte attraverso le interviste, hanno permesso di fornire un contributo non presente in letteratura: una categorizzazione delle revisioni svolte dalle aziende e riflessioni su di esse. La limitazione di questo studio è legata ad un basso numero interviste svolte.

Comparison of performance measurement-systems used for order-picking

In consequence of rapidly changing market demands companies are permanently encouraged to review their own processes and structures and to modify them. Being one of these developments, order-picking is involved as part of an intra-logistics system. But to take appropriate actions, system performance and system costs have to be measured permanently. Concerning this the use of performance measurement-systems as further development of traditional systems of key figures is suitable. In this paper various performance measurement-systems are compared and their suitability for an implementation in order-picking systems is estimated. On the basis of the result of the evaluation a first concept of a performance measurement-system for order-picking will be developed by using typical key figures that are mentioned in academic literature. Finally, hints for a necessary detailed implementation and evaluation in practice will be given.

The impact of supply chain performance measurement systems on dynamic behaviour in supply chains

The amplification of demand variation up a supply chain widely termed ‘the Bullwhip Effect’ is disruptive, costly and something that supply chain management generally seeks to minimise. Originally attributed to poor system design; deficiencies in policies, organisation structure and delays in material and information flow all lead to sub-optimal reorder point calculation. It has since been attributed to exogenous random factors such as: uncertainties in demand, supply and distribution lead time but these causes are not exclusive as academic and operational studies since have shown that orders and/or inventories can exhibit significant variability even if customer demand and lead time are deterministic. This increase in the range of possible causes of dynamic behaviour indicates that our understanding of the phenomenon is far from complete. One possible, yet previously unexplored, factor that may influence dynamic behaviour in supply chains is the application and operation of supply chain performance measures. Organisations monitoring and responding to their adopted key performance metrics will make operational changes and this action may influence the level of dynamics within the supply chain, possibly degrading the performance of the very system they were intended to measure. In order to explore this a plausible abstraction of the operational responses to the Supply Chain Council’s SCOR® (Supply Chain Operations Reference) model was incorporated into a classic Beer Game distribution representation, using the dynamic discrete event simulation software Simul8. During the simulation the five SCOR Supply Chain Performance Attributes: Reliability, Responsiveness, Flexibility, Cost and Utilisation were continuously monitored and compared to established targets. Operational adjustments to the; reorder point, transportation modes and production capacity (where appropriate) for three independent supply chain roles were made and the degree of dynamic behaviour in the Supply Chain measured, using the ratio of the standard deviation of upstream demand relative to the standard deviation of the downstream demand. Factors employed to build the detailed model include: variable retail demand, order transmission, transportation delays, production delays, capacity constraints demand multipliers and demand averaging periods. Five dimensions of supply chain performance were monitored independently in three autonomous supply chain roles and operational settings adjusted accordingly. Uniqueness of this research stems from the application of the five SCOR performance attributes with modelled operational responses in a dynamic discrete event simulation model. This project makes its primary contribution to knowledge by measuring the impact, on supply chain dynamics, of applying a representative performance measurement system.

The impact of the performance measurement systems in setting the 'direction' in the University of Warwick

This paper presents a case study examining the role of performance measurement systems in setting organizational ‘direction’. There is a growing concern in the existing literature to link the development of organizational ‘direction’ with performance measurement systems. Furthermore, the alignment between organizational ‘direction’, strategy and performance measurement is an area of increasing interest for both academics and practitioners. However, there is no adequate research recorded in the literature on the use of the performance measurement systems and the potential impact that performance measurement can have in setting the organizational ‘direction’. This study reports the findings of a case study from one of the leading academic institutions in the UK, the University of Warwick, presenting the main characteristics of its performance measurement system and attempting to explain the connection with setting the university’s ‘direction’.

Performance measurement based co-ordination of enterprise resource planning systems in a virtual enterprise

As the backbone of e-business, Enterprise Resource Planning (ERP)system plays an important role in today's competitive business environment. Few publications discuss the application of ERP systems in a virtual enterprise (VE). A VE is defined as a dynamic partnership among enterprises that can bring together complementary core competencies needed to achieve a business task. Since VE strongly emphasises partner cooperation, specific issues exist relative to the implementation of ERP systems in a VE. This paper discusses the use of VE Performance Measurement System(VEPMS) to coordinate ERP systems of VE partners. It also defines the framework of a `Virtual Enterprise Resource Planning (VERP) system', and identifies research avenues in this field.

High altitude pollution program stratospheric measurement system laboratory performance capability report chemical conversion techniques /

"Report no. FAA-EE-80-11."

Implementation of a machine tool performance measurement and diagnostic system and its impact on parts verification

Five axis machine tools are increasing and becoming more popular as customers demand more complex machined parts. In high value manufacturing, the importance of machine tools in producing high accuracy products is essential. High accuracy manufacturing requires producing parts in a repeatable manner and precision in compliance to the defined design specifications. The performance of the machine tools is often affected by geometrical errors due to a variety of causes including incorrect tool offsets, errors in the centres of rotation and thermal growth. As a consequence, it can be difficult to produce highly accurate parts consistently. It is, therefore, essential to ensure that machine tools are verified in terms of their geometric and positioning accuracy. When machine tools are verified in terms of their accuracy, the resulting numerical values of positional accuracy and process capability can be used to define design for verification rules and algorithms so that machined parts can be easily produced without scrap and little or no after process measurement. In this paper the benefits of machine tool verification are listed and a case study is used to demonstrate the implementation of robust machine tool performance measurement and diagnostics using a ballbar system.

Performance Measurement for Highway Winter Maintenance Operations, TR-491, 2009

The goal of this research project was to develop a method to measure the performance of a winter maintenance program with respect to the task of providing safety and mobility to the travelling public. Developing these measures required a number of steps, each of which was accomplished. First, the impact of winter weather on safety (crash rates) and mobility (average vehicle speeds were measured by a combination of literature reviews and analysis of Iowa Department of Transportation traffic and Road Weather Information System data. Second, because not all winter storms are the same in their effects on safety and mobility, a method had to be developed to determine how much the various factors that describe a winter storm actually change safety and mobility. As part of this effort a storm severity index was developed, which ranks each winter storm on a scale between 0 (a very benign storm) and 1 (the worst imaginable storm). Additionally a number of methods of modeling the relationships between weather, winter maintenance actions and road surface conditions were developed and tested. The end result of this study was a performance measure based on average vehicle speed. For a given class of road, a maximum expected average speed reduction has been identified. For a given storm, this maximum expected average speed reduction is modified by the storm severity index to give a target average speed reduction. Thus, if for a given road the maximum expected average speed reduction is 20 mph, and the storm severity for a particular storm is 0.6, then the target average speed reduction for that road in that storm is 0.6 x 20 mph or 12 mph. If the average speed on that road during and after the storm is only 12 mph or less than the average speed on that road in good weather conditions, then the winter maintenance performance goal has been met.

Machine vision measurement system for paper printability assessments

This work had two primary objectives: 1) to produce a working prototype for automated printability assessment and 2) to perform a study of available machine vision and other necessary hardware solutions. The three printability testing methods, IGT Picking,He¬liotest, and mottling, considered in this work have several different requirements and the task was to produce a single automated testing system suitable for all methods. A system was designed and built and its performance was tested using the Heliotest. Working proto¬types are important tools for implementing theoretical methods into practical systems and testing and demonstrating the methodsin real life conditions. The system was found to be sufficient for the Heliotest method. Further testing and possible modifications related to other two test methods were left for future works. A short study of available systems and solutions concerning image acquisition of machine vision was performed. The theoretical part of this study includes lighting systems, optical systems and image acquisition tools, mainly cameras and the underlying physical aspects for each portion.

Developing supply chain performance measurement metrics, case Halton Oy

Tämä tutkimus pyrkii selvittämään, miten toimitusketjun suorituskykyä voidaan mitata kohdeyrityksessä. Supply Chain Council (SCC) on vuonna 1996 kehittänyt Supply Chain Operations Reference (SCOR) – mallin, joka mahdollistaa myös suorituskyvyn mittaamisen. Tämän tutkimuksen tarkoituksena on soveltaa SCOR-mallin suorituskyvyn mittausmallia kohdeyrityksessä. Työ on kvalitatiivinen tapaustutkimus. Työn teoriaosassa on pääasiallisesti käsitelty toimitusketjua ja suorituskyvyn mittaamista koskevaa kirjallisuutta. Mittausjärjestelmän luominen alkaa kohdeyrityksen esittelyllä. SCOR – mallin mittarit on kohdeyrityksessä rakennettu SCC:n ehdotusten mukaisesti, jotta mittareiden tulokset olisivat käyttökelpoisia myös benchmarkkausta varten. Malli sisältää 10 SCOR – mittaria, sekä muutamia muita Haltonin omia mittareita. Lopputuloksena voidaan nähdä, että SCOR – malli antaa hyvän yleiskuvan toimitusketjun suorituskyvystä, mutta kohdeyrityksessä on silti tarvetta kehittää edelleen informatiivisempia mittareita, jotka antaisivat yksityiskohtaisempaa tietoa kohdeyrityksen johdolle.

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.

Development and characterization of a distributed measurement system for the evaluation of voltage quality in electric power networks

The research activity carried out during the PhD course in Electrical Engineering belongs to the branch of electric and electronic measurements. The main subject of the present thesis is a distributed measurement system to be installed in Medium Voltage power networks, as well as the method developed to analyze data acquired by the measurement system itself and to monitor power quality. In chapter 2 the increasing interest towards power quality in electrical systems is illustrated, by reporting the international research activity inherent to the problem and the relevant standards and guidelines emitted. The aspect of the quality of voltage provided by utilities and influenced by customers in the various points of a network came out only in recent years, in particular as a consequence of the energy market liberalization. Usually, the concept of quality of the delivered energy has been associated mostly to its continuity. Hence the reliability was the main characteristic to be ensured for power systems. Nowadays, the number and duration of interruptions are the “quality indicators” commonly perceived by most customers; for this reason, a short section is dedicated also to network reliability and its regulation. In this contest it should be noted that although the measurement system developed during the research activity belongs to the field of power quality evaluation systems, the information registered in real time by its remote stations can be used to improve the system reliability too. Given the vast scenario of power quality degrading phenomena that usually can occur in distribution networks, the study has been focused on electromagnetic transients affecting line voltages. The outcome of such a study has been the design and realization of a distributed measurement system which continuously monitor the phase signals in different points of a network, detect the occurrence of transients superposed to the fundamental steady state component and register the time of occurrence of such events. The data set is finally used to locate the source of the transient disturbance propagating along the network lines. Most of the oscillatory transients affecting line voltages are due to faults occurring in any point of the distribution system and have to be seen before protection equipment intervention. An important conclusion is that the method can improve the monitored network reliability, since the knowledge of the location of a fault allows the energy manager to reduce as much as possible both the area of the network to be disconnected for protection purposes and the time spent by technical staff to recover the abnormal condition and/or the damage. The part of the thesis presenting the results of such a study and activity is structured as follows: chapter 3 deals with the propagation of electromagnetic transients in power systems by defining characteristics and causes of the phenomena and briefly reporting the theory and approaches used to study transients propagation. Then the state of the art concerning methods to detect and locate faults in distribution networks is presented. Finally the attention is paid on the particular technique adopted for the same purpose during the thesis, and the methods developed on the basis of such approach. Chapter 4 reports the configuration of the distribution networks on which the fault location method has been applied by means of simulations as well as the results obtained case by case. In this way the performance featured by the location procedure firstly in ideal then in realistic operating conditions are tested. In chapter 5 the measurement system designed to implement the transients detection and fault location method is presented. The hardware belonging to the measurement chain of every acquisition channel in remote stations is described. Then, the global measurement system is characterized by considering the non ideal aspects of each device that can concur to the final combined uncertainty on the estimated position of the fault in the network under test. Finally, such parameter is computed according to the Guide to the Expression of Uncertainty in Measurements, by means of a numeric procedure. In the last chapter a device is described that has been designed and realized during the PhD activity aiming at substituting the commercial capacitive voltage divider belonging to the conditioning block of the measurement chain. Such a study has been carried out aiming at providing an alternative to the used transducer that could feature equivalent performance and lower cost. In this way, the economical impact of the investment associated to the whole measurement system would be significantly reduced, making the method application much more feasible.