Abstract
The trend of globalization has led to a structural change in the sales and procurement markets of manufacturing companies in recent decades. In order not to be left behind by this change, companies have internationalized their production structures. Global production networks with diverse supply and service interdependencies are the result. However, the management of global production networks is highly complex. Key performance indicator (KPI) networks already exist at the corporate level and site level to support the management of complex systems. However, such KPI networks are not yet available to support the management of entire production networks. In this article, a KPI network for global production networks is presented, which links the key figures of the site level and the corporate level. By integrating both levels into a comprehensive KPI network, cause and effect relationship between the production-related KPIs and the strategic KPIs of a corporate strategy become transparent. To this end, this KPI network is integrated into a Performance Measurement and Management (PMM) methodology. This methodology consists of three phases: performance planning, performance improvement, and performance review. For testing the practical suitability, the PMM methodology is applied to the production network of an automotive supplier using a simulation model to estimate the effects of proposed improvement actions of the methodology.
Highlights
The increasing globalization of sales and procurement markets results in worldwide competition for manufacturing companies
For the management of individual production sites, the use of key performance indicator (KPI) systems has proven itself in practice
This paper presents a practice-oriented methodology for performance measurement and management in global production networks (GPNs)
Summary
The increasing globalization of sales and procurement markets results in worldwide competition for manufacturing companies. For the management of individual production sites, the use of key performance indicator (KPI) systems has proven itself in practice. These KPI systems provide site management with relevant information about the current state of the production site. 4 of this article, which displays the performance of GPNs in four dimensions: efficiency, flexibility, quality, and time This KPI network will be integrated into a methodology for the strategic management of GPNs. The resulting Performance Measurement and Management methodology consists of three phases: performance planning, performance improvement, and performance review
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