Performance measurement system for lean manufacturing: a perspective from SMEs Online publication date: Thu, 01-May-2008
by G. Anand, Rambabu Kodali
International Journal of Globalisation and Small Business (IJGSB), Vol. 2, No. 4, 2008
Abstract: Many organisations – be it small or medium or large-scale enterprises – are attempting to transform their organisation using the principles and philosophies of World-Class Manufacturing (WCM), such as Total Quality Management (TQM) and Theory of Constraints (TOC). Managers in some of these organisations feel that they have not achieved the desired benefits after the implementation. One of the most commonly quoted reasons in the literature is improper understanding of Performance Measurement Systems (PMS) and its corresponding metrics by them. To resolve such issues, researchers have proposed various PMS for TQM, TOC, etc. But very little research has been carried out to understand the performance measures and PMS for an organisation under a Lean Manufacturing (LM) environment. Hence, in this paper, an attempt has been made to propose a conceptual PMS framework for LM. One of the distinctive features of the proposed framework is that it can be suitably customised even for Small- and Medium-sized Enterprises (SMEs).
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