The links between just-in-time practices and alignment of benchmarking performance measures

Abstract

Purpose – The purpose of this paper is to examine if there are links between just-in-time (JIT) practices and consistency of benchmarking performance measures at various levels of organization. Design/methodology/approach – A set of ten hypotheses were used to examine the differences between traditional and JIT organizations in the effectiveness of benchmarking performance measures. A questionnaire-based survey data were used to test the hypotheses. The target population was manufacturing firms in Midwestern US; the sample covers organizations in a variety of industries. Out of 91 completed surveys received, 84 surveys were usable resulting in a response rate of 17 per cent. Out of 84 usable surveys, 33 organizations were grouped as JIT and 51 as traditional organizations. Findings – JIT organizations are better in recognizing external environmental factors, developing organizational core competencies, building learning organization through knowledge workforce, and using a broad and balanced mix of performance measures that are consistent with organizational strategy. Research limitations/implications – Research is general and not industry specific. Practical implications – Effective performance measurement is a critical element of organizational success. It requires a thorough understanding of organizational strategy and deployment of the strategy into consistent sub-strategies and action plans. Originality/value – The benefits of JIT principles go beyond inventory management. These principles can be applied to other areas such as effective performance measurement.