Authors: Badr Haque, Mike James-Moore
Addresses: Warwick Manufacturing Group, University of Warwick, Coventry, CV4 7AL, UK. ' Warwick Manufacturing Group, University of Warwick, Coventry, CV4 7AL, UK
Abstract: In engineering companies, intensified competition has increased interest in effective performance measurement particularly in manufacturing operations. More recently, it has been realised that significant potential for improving competitiveness may well be available by applying suitable measures to the more complex world of new product development (NPD). In this article, five case studies are presented showing how major aerospace companies are tackling this issue and some of the problems and benefits they have encountered. It was found that performance measurement|s role was not confined to simple reactive monitoring but extended to a proactive mechanism for disseminating strategy and changing organisational culture. However, the measures used, in the main, focused on project/programme performance, in particular cost and lead-time metrics; and quality in terms of design errors or re-work. Measures for risk reduction, innovation, and design re-use were lacking. These issues need to be addressed too, to enable companies develop effective, innovative and risk free products or services.
Keywords: new product development; NPD; product design; performance measurement; case studies; aerospace industry; waste analysis; cost reduction; quality improvement; lead time reduction; value; organisational culture; culture change; manufacturing strategy; risk reduction; innovation; design reuse.
International Journal of Business Performance Management, 2005 Vol.7 No.1, pp.100 - 122
Published online: 07 Feb 2005 *Full-text access for editors Access for subscribers Purchase this article Comment on this article