Lean Information Management: Criteria For Selecting Key Performance Indicators At Shop Floor

Open access

Abstract

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.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • [1]. Nanni A. J. Dixon J. R. Vollmann T. E. Integrated performance measurement: management accounting to support the new manufacturing realities Journal of Management Accounting Research Vol. 4 No. 1 pp. 1-19 (1992).

  • [2]. Masaaki I. Gemba Kaizen Finmedia Bucuresti (2004).

  • [3]. Stamm M. L. Neitzert T. Key performance indicators (KPI) for the implementationof lean methodologies in a manufavcture-to-order small and medium entreprise School of Engineering AUT University Auckland New Zealand available at: http://aut.researchgateway.ac.nz/bitstream/handle/10292/3857/KeyperformanceindicatorsMSTN.pdf?sequen last accessed on 23.06.14 (2008).

  • [4]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

  • [5]. Jung J.Y. Lee J. Jung J.n H. Kim S. K. & Shin D.A. Methodology for performance measurement in manufacturing collaboration International Journal of Industrial Engineering Vol.19 No.3 pp. 149-160 (2012).

  • [6]. Jackson T.L. Implementing a Lean Management System Productivity Press Portland (1996).

  • [7]. Ohno T. Toyota Production System – Beyond Large-scale Production Portland Oregon Productivity Press (1988).

  • [8]. Liker J. Meier D. The Toyota Way Fieldbook New York McGraw Hill (2006).

  • [9]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

  • [10]. Stamm M. L. Neitzert T. Key performance indicators (KPI) for the implementationof lean methodologies in a manufavcture-to-order small and medium entreprise School of Engineering AUT University Auckland New Zealand available at: http://aut.researchgateway.ac.nz/bitstream/handle/10292/3857/KeyperformanceindicatorsMSTN.pdf?sequen last accessed on 23.06.14 (2008).

  • [11]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

  • [12]. Jung J.Y. Lee J. Jung J.n H. Kim S. K. & Shin D.A. Methodology for performance measurement in manufacturing collaboration International Journal of Industrial Engineering Vol.19 No.3 pp. 149-160 (2012).

  • [13]. Ohno T. Toyota Production System – Beyond Large-scale Production Portland Oregon Productivity Press (1988).

  • [14]. Kaplan R.S. Norton D.P. “The balanced scorecard: measures that drive performance.” Harvard business review Vol.83 No.7 pp. 172-180 (2005).

  • [15]. De Leeuw S. Van den Berg J. Improving operational performance by influencing shopfloor behavior via performance management practices Journal of Operations Management 29 No.3 224–235 (2011).

  • [16]. Stamm M. L. Neitzert T. Key performance indicators (KPI) for the implementationof lean methodologies in a manufavcture-to-order small and medium entreprise School of Engineering AUT University Auckland New Zealand available at: http://aut.researchgateway.ac.nz/bitstream/handle/10292/3857/KeyperformanceindicatorsMSTN.pdf?sequen last accessed on 23.06.14 (2008).

  • [17]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

  • [18]. Stamm M. L. Neitzert T. Key performance indicators (KPI) for the implementationof lean methodologies in a manufavcture-to-order small and medium entreprise School of Engineering AUT University Auckland New Zealand available at: http://aut.researchgateway.ac.nz/bitstream/handle/10292/3857/KeyperformanceindicatorsMSTN.pdf?sequen last accessed on 23.06.14 (2008).

  • [19]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

  • [20]. Jung J.Y. Lee J. Jung J.n H. Kim S. K. & Shin D.A. Methodology for performance measurement in manufacturing collaboration International Journal of Industrial Engineering Vol.19 No.3 pp. 149-160 (2012).

  • [21]. Stamm M. L. Neitzert T. Key performance indicators (KPI) for the implementationof lean methodologies in a manufavcture-to-order small and medium entreprise School of Engineering AUT University Auckland New Zealand available at: http://aut.researchgateway.ac.nz/bitstream/handle/10292/3857/KeyperformanceindicatorsMSTN.pdf?sequen last accessed on 23.06.14 (2008).

  • [22]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

  • [23]. Stamm M. L. Neitzert T. Key performance indicators (KPI) for the implementationof lean methodologies in a manufavcture-to-order small and medium entreprise School of Engineering AUT University Auckland New Zealand available at: http://aut.researchgateway.ac.nz/bitstream/handle/10292/3857/KeyperformanceindicatorsMSTN.pdf?sequen last accessed on 23.06.14 (2008).

  • [24]. Jung J.Y. Lee J. Jung J.n H. Kim S. K. & Shin D.A. Methodology for performance measurement in manufacturing collaboration International Journal of Industrial Engineering Vol.19 No.3 pp. 149-160 (2012).

  • [25]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

  • [26]. Stamm M. L. Neitzert T. Key performance indicators (KPI) for the implementationof lean methodologies in a manufavcture-to-order small and medium entreprise School of Engineering AUT University Auckland New Zealand available at: http://aut.researchgateway.ac.nz/bitstream/handle/10292/3857/KeyperformanceindicatorsMSTN.pdf?sequen last accessed on 23.06.14 (2008).

  • [27]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

  • [28]. Jung J.Y. Lee J. Jung J.n H. Kim S. K. & Shin D.A. Methodology for performance measurement in manufacturing collaboration International Journal of Industrial Engineering Vol.19 No.3 pp. 149-160 (2012).

  • [29]. Liker J. Meier D. The Toyota Way Fieldbook New York McGraw Hill (2006).

  • [30]. Groen B. Marc Wouters M. Wilderom C. Why do employees take more initiatives to improve their performance after co-developing performance measures? A field study Elsevier Management Accounting Research pp. 120–141 (2012).

  • [31]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

  • [32]. Liker J. Meier D. The Toyota Way Fieldbook New York McGraw Hill (2006).

  • [33]. Groen B. Marc Wouters M. Wilderom C. Why do employees take more initiatives to improve their performance after co-developing performance measures? A field study Elsevier Management Accounting Research pp. 120–141 (2012).

  • [34]. De Leeuw S. Van den Berg J. Improving operational performance by influencing shopfloor behavior via performance management practices Journal of Operations Management 29 No.3 224–235 (2011).

  • [35]. Piatt J. 5 Rules for Selecting the Best KPIs to Drive Operational Improvement Industry week magazine Penton Publishing Cleveland available at: http://www.industryweek.com/lean-six-sigma/five-rules-selecting-best-kpis-drive-operational-improvement last accessed on 26.03.2014 (2012).

Search
Journal information
Cited By
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 298 158 8
PDF Downloads 106 67 3