Title: The measurement of operational performance effectiveness: an innovative organisational approach

Authors: Carlos F. Gomes, Mahmoud M. Yasin, Joao V. Lisboa

Addresses: Institute of Systems and Robotics, School of Economics, University of Coimbra, Av. Dias da Silva 165 3004–512 Coimbra, Portugal. ' Department of Management and Marketing, East Tennessee State University, P.O. Box 70625 Johnson City, TN 37614, USA. ' Institute of Systems and Robotics, School of Economics University of Coimbra, Av. Dias da Silva 165, 3004–512 Coimbra, Portugal

Abstract: The literature on manufacturing performance measurement underscores the importance of operational performance measures, as well as aggregate organisational measures. However, research aimed at quantifying and tracking such measures from both operational and organisational perspectives has been slow in forthcoming. The Manufacturing Operational Effectiveness (MOE) indicator introduced and tested in this study lends itself to both operational performance measures and aggregate organisational performance measures of the manufacturing system performance. The results of several simulation scenarios utilising actual manufacturing data clearly illustrate the utility of MOE. These results have both operational tactical and strategic organisational practical implications. Operational effectiveness and strategic competitiveness can be tracked and improved through the systematic utilisation of MOE.

Keywords: innovative approach; manufacturing performance; performance effectiveness; productivity; competitiveness; operational strategy; operational tactics; simulation; performance measurement; operational effectiveness.

DOI: 10.1504/IJBIR.2007.013724

International Journal of Business Innovation and Research, 2007 Vol.1 No.4, pp.337 - 364

Published online: 23 May 2007 *

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