Maria Virginia Iuga, Claudiu Vasile Kifor and Liviu-Ion Rosca
Most successful organizations worldwide use key performance indicators as an important part of their corporate strategy in order to forecast, measure and plan their businesses. Performance metrics vary in their purpose, definition and content. Therefore, the way organizations select what they think are the optimal indicators for their businesses varies from company to company, sometimes even from department to department. This study aims to answer the question of what is the most suitable way to define and select key performance indicators. More than that, it identifies the right criteria to select key performance indicators at shop floor level. This paper contributes to prior research by analysing and comparing previously researched selection criteria and proposes an original six-criteria-model, which caters towards choosing the most adequate KPIs. Furthermore, the authors take the research a step further by further steps to closed research gaps within this field of study.
The purpose of lean managements is to create and determine value and eliminate all non-value added activities. The idea of lean in the current manufacturing environment is to work and produce from the customer's perspective, and therefore to define value as a variable directly depending on the consumer of the good or service. Basically, lean is concerned with creating more value with fewer resources. LM (lean manufacturing) allows organizations to prosper in the marketplace being able to price competitively or invest in the development of products for future sustainability. Reducing the amount of waste, in example defective products, increases profits resulting in greater overall efficiencies. This paper analyses the risk factors which can hinder having a successful LM within an organization. The core focus of this study lies in discussing the risk factors in regards to human resources which can hinder organizations to successfully implement LM. Through a thorough literature and study review, the paper underlines the importance of a lean organizational culture and management. The lack of alignment of these two areas with the LM implementation will result in turning them from being the strongest implementation KPIs into being the highest risk factors and barriers for the company.