Towards an Integrated Proposal for Performance Measurement Indicators (Financial and Operational) in Advanced Production Practices
Starting with an analysis of the financial and
operational indicators that can be found in the specialised literature,
this study aims to contribute to improvements in the performance
measurement systems used when the unit of analysis is the
manufacturing plant. For this a search was done in the highest impact
Journals of Production and Operations Management and
Management Accounting , with the aim of determining the financial
and operational indicators used to evaluate performance when
Advanced Production Practices have been implemented, more
specifically when the practices implemented are Total Quality
Management, JIT/Lean Manufacturing and Total Productive
Maintenance. This has enabled us to obtain a classification of the two
types of indicators based on how much each is used. For the financial
indicators we have also prepared a proposal that can be adapted to
manufacturing plants- accounting features. In the near future we will
propose a model that links practices implementation with financial
and operational indicators and these two last with each other. We aim
to will test this model empirically with the data obtained in the High
Performance Manufacturing Project.
[1] B. Maskell, "Performance Measurement for World Class Manufacturing
- 3". Management Accounting, 1989, Vol.67, No.7, pp .48.
[2] B. Flynn, R.G. Schroederand, E.J. Flynn, "World class manufacturing:
an investigation of Hayes and Wheelwright's foundation". Journal of
Operations Management, 1999, Vol.17, No.3, pp. 249-269.
[3] R.H. Hayes, and G.P. Pisano, "Beyond world-class: The new
manufacturing strategy". Harvard Business Review, 1994, Vol.72, No.1,
pp.77- 85.
[4] L. Zurawski, "Changing times for e-business". Control Engineering,
2001, Vol.48.No.4, pp. 38-41.
[5] A. B. Abdel-Maksoud, D. Dugdale, and L. Robert, "Non-financial
performance measurement in manufacturing companies". The British
Accounting Review, 2005, Vol.37, No.3, pp. 261-297.
[6] C. D. Ittner and D. F. Larcker, "Innovations in performance
measurement: Trends and research implications". Journal of
Management Accounting Research, 1998, Vol.10, pp.205-238.
[7] M.A. Abernethy and A.M Lillis, "The impact of manufacturing
flexibility on management control system design". Accounting,
Organizations and Society, 1995, Vol.20, No.4, pp. 241-258.
[8] R.R. Fullerton, C.S. McWatters and C. Fawson. "An examination of the
relationships between JIT and financial performance". Journal of
Operations Management, 2003,Vol.21, No.4, pp. 383-404.
[9] B. Escobar, J.A.D. Machuca and D. E. Luján, Financial performance
indicators used in the analysis of TQM, TPM and JIT/LM advanced
production practices: literature review and proposal, Conference
EurOMA 2011, Cambridge.
[10] K. Chan, G. Seow, and K. Tam, "Ranking accounting journals using
dissertation citation analysis: A research note". Accounting,
Organizations and Society, 2009, Vol.34, No.6, pp.875-885.
[11] P. Hsieh, and P. Chang, "An assessment of world-wide research
productivity in production and operations management". International
Journal of Production Economics, 2009, Vol.120. No.2, pp. 540-551.
[12] C.H. Ortega, J.A.D. Machuca, and P. Garrido, "Interrelaci├│n Estrategia
de Operaciones-Tecnología y su Efecto Sobre el Rendimiento de la
Producción: un Análisis Empírico Sectorial en el Proyecto HPM
Internacional". Sevilla: Universidad de Sevilla, 2007.
[13] M. Hallgren, and J. Olhager, "Lean and agile manufacturing: external
and internal drivers and performance outcomes". International Journal of
Operations & Production Management, 2009, Vol.29, No.10, pp.976-
999.
[14] R. Schroeder, and B. Flynn, "High performance manufacturing". John
Wiley and Sons. New York, 2001, pp 3-12.
[15] K.O Cua, K. E. McKone-Sweet, and R. G Schroeder. "Improving
Performance through an Integrated Manufacturing Program". The
Quality Management Journal, 2006, Vo13, No.3, pp 45-60.
[16] M. Camacho-Mi├▒ano, J. Moyano-Fuentes and M. Sacristan Diaz,
Assessment of the results in the adoption of Lean Management:
designing a model". EurOMA, 2009. Groningen-Netherlands.
[17] B.B. Flynn, S. Sakakibara, and R.G. Schroeder, "Relationship between
JIT and TQM: Practices and performance". Academy of Management
Journal, 1995.Vol.38, No.5, pp.1325-1360.
[18] R.S. Kaplan and D.P. Norton, "The balanced scorecard: measures that
drive performance". Harvard Business Review, 1992, 71-79.
[19] R. R. Fullerton and W.F. Wempe "Lean manufacturing, non-financial
performance measures and financial performance". International
Journal of Operations & Production Management, 2009, Vol.29, No.3,
pp.214-240
[1] B. Maskell, "Performance Measurement for World Class Manufacturing
- 3". Management Accounting, 1989, Vol.67, No.7, pp .48.
[2] B. Flynn, R.G. Schroederand, E.J. Flynn, "World class manufacturing:
an investigation of Hayes and Wheelwright's foundation". Journal of
Operations Management, 1999, Vol.17, No.3, pp. 249-269.
[3] R.H. Hayes, and G.P. Pisano, "Beyond world-class: The new
manufacturing strategy". Harvard Business Review, 1994, Vol.72, No.1,
pp.77- 85.
[4] L. Zurawski, "Changing times for e-business". Control Engineering,
2001, Vol.48.No.4, pp. 38-41.
[5] A. B. Abdel-Maksoud, D. Dugdale, and L. Robert, "Non-financial
performance measurement in manufacturing companies". The British
Accounting Review, 2005, Vol.37, No.3, pp. 261-297.
[6] C. D. Ittner and D. F. Larcker, "Innovations in performance
measurement: Trends and research implications". Journal of
Management Accounting Research, 1998, Vol.10, pp.205-238.
[7] M.A. Abernethy and A.M Lillis, "The impact of manufacturing
flexibility on management control system design". Accounting,
Organizations and Society, 1995, Vol.20, No.4, pp. 241-258.
[8] R.R. Fullerton, C.S. McWatters and C. Fawson. "An examination of the
relationships between JIT and financial performance". Journal of
Operations Management, 2003,Vol.21, No.4, pp. 383-404.
[9] B. Escobar, J.A.D. Machuca and D. E. Luján, Financial performance
indicators used in the analysis of TQM, TPM and JIT/LM advanced
production practices: literature review and proposal, Conference
EurOMA 2011, Cambridge.
[10] K. Chan, G. Seow, and K. Tam, "Ranking accounting journals using
dissertation citation analysis: A research note". Accounting,
Organizations and Society, 2009, Vol.34, No.6, pp.875-885.
[11] P. Hsieh, and P. Chang, "An assessment of world-wide research
productivity in production and operations management". International
Journal of Production Economics, 2009, Vol.120. No.2, pp. 540-551.
[12] C.H. Ortega, J.A.D. Machuca, and P. Garrido, "Interrelaci├│n Estrategia
de Operaciones-Tecnología y su Efecto Sobre el Rendimiento de la
Producción: un Análisis Empírico Sectorial en el Proyecto HPM
Internacional". Sevilla: Universidad de Sevilla, 2007.
[13] M. Hallgren, and J. Olhager, "Lean and agile manufacturing: external
and internal drivers and performance outcomes". International Journal of
Operations & Production Management, 2009, Vol.29, No.10, pp.976-
999.
[14] R. Schroeder, and B. Flynn, "High performance manufacturing". John
Wiley and Sons. New York, 2001, pp 3-12.
[15] K.O Cua, K. E. McKone-Sweet, and R. G Schroeder. "Improving
Performance through an Integrated Manufacturing Program". The
Quality Management Journal, 2006, Vo13, No.3, pp 45-60.
[16] M. Camacho-Mi├▒ano, J. Moyano-Fuentes and M. Sacristan Diaz,
Assessment of the results in the adoption of Lean Management:
designing a model". EurOMA, 2009. Groningen-Netherlands.
[17] B.B. Flynn, S. Sakakibara, and R.G. Schroeder, "Relationship between
JIT and TQM: Practices and performance". Academy of Management
Journal, 1995.Vol.38, No.5, pp.1325-1360.
[18] R.S. Kaplan and D.P. Norton, "The balanced scorecard: measures that
drive performance". Harvard Business Review, 1992, 71-79.
[19] R. R. Fullerton and W.F. Wempe "Lean manufacturing, non-financial
performance measures and financial performance". International
Journal of Operations & Production Management, 2009, Vol.29, No.3,
pp.214-240
@article{"International Journal of Business, Human and Social Sciences:60646", author = "José A. D. Machuca and Bernabé Escobar-Pérez and Pedro Garrido Vega and Darkys E. Lujan García", title = "Towards an Integrated Proposal for Performance Measurement Indicators (Financial and Operational) in Advanced Production Practices", abstract = "Starting with an analysis of the financial and
operational indicators that can be found in the specialised literature,
this study aims to contribute to improvements in the performance
measurement systems used when the unit of analysis is the
manufacturing plant. For this a search was done in the highest impact
Journals of Production and Operations Management and
Management Accounting , with the aim of determining the financial
and operational indicators used to evaluate performance when
Advanced Production Practices have been implemented, more
specifically when the practices implemented are Total Quality
Management, JIT/Lean Manufacturing and Total Productive
Maintenance. This has enabled us to obtain a classification of the two
types of indicators based on how much each is used. For the financial
indicators we have also prepared a proposal that can be adapted to
manufacturing plants- accounting features. In the near future we will
propose a model that links practices implementation with financial
and operational indicators and these two last with each other. We aim
to will test this model empirically with the data obtained in the High
Performance Manufacturing Project.", keywords = "Advanced Production Practices, Financial Indicators, Non-Financial Indicators", volume = "5", number = "11", pages = "1626-6", }
