Industrial Performance Measurement Systems Coherence: A Comparative Analysis of Current Methodologies, Validation and Introduction to Key Activity Indicators

Abstract

This paper discusses and integrates the concept of complexity in the industrial performance measurement and management systems (PMM) theory, providing a comprehensive overview of the different methodologies used within the decision systems research area. It also discusses the importance of introducing Key Activity Indicators (KAI) within PMM, specifically related to the Operations and Supply Chain management research and industrial areas. Moreover, it provides validation of the methodology through a case study concerning the production environment of a multinational pharmaceutical company. The main research objective is to design appropriate industrial PMM systems with the aim of increasing the industrial efficiency and effectiveness of manufacturing and service organizations. An analysis of the central industrial performance measurement systems design methods is conducted, classifying them into macro-categories and conducting a comparative study. Based on the analysis of the different proposed methods, organisations will be able to choose the best one based on their needs to design effective decision systems. The research work allows organisations to evaluate, assess, and design effective industrial performance measurement systems. Moreover, the proposed methodology can be easily integrated within an Industry 4.0 context, and benefit from the digitalization environment to obtain continuous feedback on the effectiveness of the industrial PMM.