Integrated Performance Measurement System Research Articles

Pengukuran Kinerja Industri Kelapa Sawit Menggunakan Metode Balanced Scorecard dan Proses Hirarki Analitis

<p><strong>Palm oil plantations are one of the agricultural commodities in Indonesia that play a crucial role in food availability and the economy. This research employs the Balanced Scorecard (BSC) model as an integrated performance measurement system. The BSC measures company performance from both financial and non-financial perspectives. The study aims to measure the performance of the palm oil industry at PT. KMP Masamba, and covers four perspectives</strong><strong> </strong><strong>namely</strong><strong> financial, customer, internal business, and learning and growth. The weighting of performance measurement elements is done using the analytical hierarchy process with the assistance of Expert Choice software. The results are expected to assist PT. KMP Masamba in determining necessary improvement priorities. The performance measurements from each perspective, ranked from highest to lowest, are as follows: customer perspective (0.148), internal business perspective (0.048), learning and growth perspective (0.047), and financial perspective (0.030). The overall company performance score is 0.543, indicating satisfactory performance and approaching high targets. Based on these conclusions, recommendations for this research include periodic performance measurement by the company to assess its comprehensive condition and improve functional activities with low performance, to improve their performance indicators.</strong></p><p><strong><em>Keywords</em></strong> - <em>Analytical Hierarchy Process, Balance Scorecard,</em> <em>The Performance Measurements. </em><em></em></p>

Integrated performance measurement system for Slovak heating industry: A balanced scorecard approach

The prerequisite for businesses’ success, competitiveness, and non-bankruptcy is their performance. An effective performance measurement system is a suitable tool for measuring and improving business performance. The development in performance measures moved from financial measures focused on company profitability to measurement systems combining different methods, approaches, and tools. The paper aims to identify key performance indicators for Slovak heating companies based on the developed integrated performance measurement system. The analysis sampled 292 Slovak companies within SK NACE 35 (heating industry). The performance measurement system was built on balanced scorecard principles, while the least absolute shrinkage and selection operator (Lasso regression) method was used to select financial indicators. Based on the combination of the above methods, a performance measurement system framework for the analyzed sample of businesses was created. The results show that when managing performance, the analyzed businesses should focus on the following financial performance indicators: Receivables turnover ratio, Return on equity, Return on costs, Total debt to total assets, Material intensity, Labor to revenue ratio, Netto cash flow to assets, Net working capital to total assets, and Short-term liabilities to assets. When building performance measurement system based on balanced scorecard principles, financial indicators were supplemented by non-financial ones. In addition to the original balanced scorecard principles, the performance measurement system was extended by environmental constituents. Also, the paper’s deliverable combines Lasso regression and balanced scorecard principles in order to select key performance indices. AcknowledgmentThis paper is prepared within the grant scheme VEGA No. 1/0741/20 (the application of variant methods in detecting symptoms of possible bankruptcy of Slovak businesses in order to ensure their sustainable development).

Exploring sustainability balanced scorecard for performance evaluation of humanitarian organizations

Performance measures are vital in assessing the disaster relief operations and mitigate the losses that occur during disaster. It is imperative to benchmark and monitor the growth of humanitarian organizations (HOs). The purpose of this research is to explore the performance measures for HOs based on a sustainability balanced scorecard (SBSC). This study identifies and finalizes 31 performance measures through literature and brainstorming session conducted with the experts. Finalized performance measures are classified into five humanitarian supply chain management (HSCM) performance perspectives using SBSC. The best worst method (BWM) is applied to prioritize the performance measures, and the additive ratio assessment (ARAS) is applied to evaluate the performance of HOs. The outcome of this research reveals that “beneficiaries’ and donors’ perspectives” is the most significant HSCM performance perspectives. The findings help to identify the relative importance of each performance measure for performance evaluation of HOs. The proposed framework can help HOs on the aspects of performance improvement relevant to both donors and beneficiaries group that facilitates stakeholders in the benchmarking and network design of HOs. This study explores the SBSC in HSCM to analyze the performance measures and evaluate the performance of HOs that enable an integrated performance measurement system. HOs monitored their logistics performance effectively, which further lead to process improvement for betterment.

Management control systems in response to social and environmental risk in large Nordic companies

This empirical study investigates the relationships between management control systems and social and environmental risks. Building on Simons’ Levers of Control conceptual framework, this study proposes that companies facing social and environmental risks will enhance the quality of their management control systems by integrating social and environmental elements into management control systems in order to manage the related risks. The study uses a longitudinal dataset of the 1179 largest listed Nordic companies for the period 2014–2018. The multivariate regression confirms a negative relationship between the social and environmental integration and social and environmental risks. The results indicate that the social and environmental integrated performance measurement system and strategy implementation are not congruent with the social and environmental risks that the companies face. Nordic companies have not adopted the social and environmental integrated measurement system and strategy in response to social and environmental risks. When the number of social and environmental incidents increase and companies meet high levels of social and environmental risks, their management control systems do not match the related risks. Such social and environmental integration should be improved in order to prevent wider negative implications of the incidents on the natural environment and society in large.

A Systematic Literature Review of Performance Pyramids System Implementation in the Manufacture Industries

The prevailing literature and empirical studies on organizational performance management stress the increasing importance of non-financial performance measures and propose companies implement an integrated performance measurement system. The purpose of our research is to investigate the characteristics of performance measurement and management in various industries. This paper discusses the published literature related to the Performance Pyramids System (PPS), focusing on the latest progress in the 18 years, starting from 2002 until 2020. This paper involves the study review of 50 articles related to PPS implementation of available database search, including Google Scholar, Elsevier, Science Direct, and other publishers in the world. This literature review contains results from a variety of different perspectives. The perspective includes the industry's focus, the focus of the number of distribution by country, the year of publication, and the number of publishers. This is useful for all types of manufacturing industries to find solutions to problems. The paper also provides advantages for researchers next to add to the literature. The aims of this study are: (i) to identify the most discussed approaches in the literature to evaluate the organizational performance, and (ii) to carry out a diagnosis of how small and medium enterprises with economic activity in several countries measure and operationalize the evaluation of their performance. To meet the study's objectives, we analyzed published studies in scientific journals and conducted twelve interviews in SMEs. The results indicate that, in addition to the majority of the studied organizations not having a formal process of their strategy, they also do not measure their products in an integrated system that would allow them to evaluate according to their strategic goals.

Is the Use of Integrated Performance Measurement System by Banks Really “Integrated”? A Structural Equation Modeling Approach

This paper investigates the implementation of integrated performance measurement (IPM) system, the extent of integration among four performance measures proposed by the balanced scorecard as an IPM framework (namely financial, customer, internal business process, and learning and growth perspectives) and the impact of non-financial disclosure on financial performance. The study employed ex post facto research design. A self-designed disclosure checklist containing forty-eight (48) items across financial (18), customer (18), internal business (4), and learning and growth (8) perspectives was used to analyze performance disclosure for a 3-year period of 2012–2014. Structural equation modeling was used to explore the interaction among the performance measures, as well as the impact of non-financial disclosure on financial performance post-IPM implementation. The study concludes that banks do not adopt an integrative approach to performance measurement and disclosure, as performance appears to be communicated in a haphazard manner. Failure to embrace an integrative approach to performance disclosure appears to be responsible for the low impact of non-financial disclosure on financial performance. The originality of the current study stems from the awareness that it developed a disclosure checklist that can be used by other studies to assess the quality of performance disclosure in annual reports. To the researchers’ knowledge, the study is the first, in the Nigerian context, to assess the level of integration among performance measures in an IPM system using secondary data. The excessive focus on the financial measures implies that firms are not leveraging on the synergistic benefits of an integrative approach to performance measurement and disclosure.

Pendekatan Malcolm Baldrige Criteria For Performance Excellent (Education Criteria) dalam Perancangan Sistem Pengukuran Kinerja Fakultas Teknik Univeritas Udayana menuju Sertifikasi AUN-QA

The Faculty of Engineering, Udayana University is one of the faculties in Udayana University. The Faculty of Engineering has 5 departments that have a lot of interest. Currently, the Faculty of Engineering is preparing to support Udayana University in obtaining the Asean University Network - Quality Assurance (AUN-QA) certification which is targeted for a visitation in 2021. One of the supporters in obtaining this certification is that the Faculty of Engineering must have a performance measurement system. In this research using an integrated performance measurement system that designed through the Malcolm Baldrige Criteria For Performance Excellent (Education Criteria) approach which is integrated with several methods, namely IPMS in determining the Key Performance Indicator (KPI) which becomes a determining indicator of later performance. assisted by using the Analytical Hierarchy Process (AHP) method in giving the weight of each KPI. After the KPI has a weight, then a comprehensive scoring is carried out using the Objectives Matrix (OMAX) method so that an index number per period is generated which is the reference for the level of performance of the department, as well as a Traffic Light System (TLS) to find out which KPIs require improvement based on color. With the creation of an integrated performance measurement system, it is hoped that the Faculty of Engineering can make continuous improvements. The results showed that the Performance Indicator from the Faculty of Engineering in this period was 427.19 with 24 KPIs being measured. The Performance Indicator shows that the overall performance of the Faculty of Engineering is above average (300). Only 2 categories are in the red zone of 21%, namely Student Criteria (KPI 1 and KPI 4) and Management Criteria (KPI 18, KPI 19, and KPI 20). In the following year, the Faculty of Engineering must focus on the five KPIs so that later they can improve performance.

Evaluation university ranking system using quacquarelli Symonds and integrated performance measurement system approach

Institutional assessment in the current era is indispensable because of increasing global competition and economic and information growth. Assessment efforts were also carried out on various factors including improving the quality of lecturers, meeting study programs that were in line with national development needs, developing educational curricula, improving the quality of community services and research, and adding internal and external collaboration. It aims to strengthen management and governance so that it has good performance and makes the university a World Class University (WCU). Fulfillment of WCU criteria in faculties or departments is one of the steps to determine the strategy for achieving a tertiary institution by giving more weight to faculty excellence to encourage the use of relevant new criteria. Also, in the ranking process, there are different criteria or indicators in several ranking techniques in the world as a manifestation of performance appraisal of the overall implementation of the organization. Quacquarelli Symonds (QS) is a rating agency that evaluates university weaknesses and strengths and produces assessments that show achievement ratings. The QS ranking also has six indicators that are believed to illustrate the value of the university.

Use of strategic management accounting techniques by companies in the Czech Republic

The purpose of this paper is to investigate the degree of use of strategic management accounting (SMA) techniques and the main factors affecting this in the Czech Republic. In order to achieve such an understanding, we apply a quantitative approach, rooted in contingency theory, including descriptive statistics, correlation analysis and regression analysis. The most intensively-used SMA techniques are strategic planning and budgeting, customer accounting, and target costing. The least-used are integrated performance measurement systems, strategic pricing and activity-based costing. Our respondents indicated that they expect an increase in the use of all SMA techniques over the next 3 years. Regression analysis confirms that the implementation of differentiation strategy (as opposed to cost leadership strategy) has a statistically significant and positive influence on SMA use. The findings of this study contribute to the better theoretical understanding of the contingent factors influencing the use of SMA techniques.

Defining the Integrated Performance Measurement Systems in Small and Medium Enterprises: An Advanced Model

Purpose: The purpose of this paper is to propose an “Integrated Performance Measurement System” (PMS) addressing the measurement and management of the financial and non-financial performance and “Intellectual Capital” (IC) for the “Small and Medium Entreprises” (SMEs). The paper relies on the “Integrated New Model” (INM) by Pirozzi and Ferulano (2016) that deals with the same task applied to a specific sector. Thus, we propose the modification of the INM model to define a “Renewed and Advanced Model” called “INM*” as integrated PMS for SMEs. 
 
 Design/methodology approach: We used a qualitative method with an inductive and deductive approach to obtain an advanced model INM*. Thus, the SMEs characteristics are translated in our advanced INM* model according to the INM* structure and the IC framework. Moreover, we integrated in our proposed model INM* the “Strategic Management Accounting” (SMA) and the “Systems of Innovation” (SI) perspectives.
 
 Findings: We proposed the advanced model INM* as integrated PMS. This is a model supporting entrepreneurial and innovative SME as well as a conceptual framework summarizing the interactions and the knowledge conversions that occur between the IC components within the innovation processes. Thus, the proposed model is a useful tool for SMEs organizations.
 
 Originality/value: The renewed and advanced model INM* is useful in the academic and practical communities. It exhibits the advantages related to the innovative usage of a unique measurement system devoted to accomplish all the measurement tasks activated by SMEs. In addition, two other models are proposed and, in turn, are available for further research.

Performance Measurement using the Integrated Performance Measurement System Approach

As a non-profit organization in education, Senior High School has the responsibility to achieve educational goals. The school is required to have accountability to the public. Performance measurement is needed to determine organizational performance. Performance measurement can also find out the company's success in vision and mission. This study aims to measure performance in schools use an integrated performance measurement system (IPMS). This method becomes the starting point for setting goals and identifying Key Performance Indicators (KPI). The results of IPMS produced eight objectives and 33 KPIs. Objectives performance includes human resources, curriculum, finance, administration, teaching and learning activities, evaluation processes, work programs, and graduation. The results showed that 8 KPIs were red, 4 KPIs were yellow, and 11 KPIs were green. This performance measurement model can also be used in other organizations. This performance measurement model helps assess organizational performance.

THE SELECTION OF PRODUCTIVITY KEY PERFORMANCE INDICATORS FOR CAR MANUFACTURING COMPANIES USING INTEGRATED PERFORMANCE MEASUREMENT SYSTEM

The increase in car market 17% in 2020, and ASEAN Free Trade policy only 5% for imported products, cause tightened competition in the automotive market. Car manufacturing companies face problems in selecting their performance indicators related to competitive challenges. The purpose of this research is to develop productivity key performance indicators in car manufacturing that conform to stakeholder requirements as a strategy to win the market. The conditions are manifested in a mapping of manufacturing symbols using the Integrated Performance Measurement System (IPMS) method. That manufacturing productivity indicators will become the focus of the top management to be controlled. There are four stages to go through, starting with the identification of stakeholder requirement, which produces six criteria and 12 stakeholder requirements and mapped into 16 goals and 24 key performance indicator (KPI). The second stage is benchmarking, and preparation of KPI hierarchy and the third stage is the description of each KPI in the form of KPI specification table. The fourth stage is the weighting of the six main criteria that result in 3 priority criteria which must be reported monthly between the manufacturing division (painting), finance and administration. Those are employee safety, manufacturing process effectiveness (painting) and waste elimination activities. The priority is obtained based on questionnaires answered by ten stakeholders (experts) processed with Analytical Hierarchy Process (AHP) approach and has been tested consistency in the number 0.09. These three criteria are described in 15 KPIs: performance rate, availability rate, quality rate, trained operator ratio, training value ratio> 80, delay ratio, attendance ratio, downtime losses, setup and adjustment losses, idle time, defect losses, yield losses, manpower efficiency, environmental impact and work accident ratio.

An integrated performance measurement framework for enhancing public health care supply chains

ABSTRACTPerformance improvement is a key step in quality management standards and awards such as ISO 9001, MBQA and EFQM. It is also indispensable in process improvement programs relying on PDCA or DMAIC. From a Supply Chain perspective, performance management is necessary to enhance its quality by improving both effectiveness and efficiency. Generally, the scope of performance management involves activities, such as defining, planning, measuring, monitoring and improving a system’s performance. This paper introduces a framework based on the Balanced scorecard (BSC) and the (SCOR) model to engineer an integrated performance measurement system for managing public healthcare supply chains. This generic performance measurement system which is meant to monitor the supply chain’s performance against its strategic objectives, is then customized to include the most relevant indicators according to the Decision-Maker’s preferences. As an illustration, the suggested framework is applied to develop a performance measurement system for the pharmaceutical products supply chain for the Moroccan public sector.

Designing model of performance measurement system of sugar industry cluster based on integrated performance measurement system approach

The Indonesian need for sugar is not balanced with domestic sugar production. This is reinforced by the fact that Indonesia is still a sugar importing country since the 1990s. Since 2010 - 2014, Indonesia's import value reaches 1.7 million US $ every year. This situation indicates mismatch with the roadmap of the sugar industry which is expected by 2015 to 2020. East Java as one of the largest contributor of Indonesian sugar with a contribution percentage of 52.31% of the overall national production has an important role in the development of the sugar industry. Therefore, a comprehensive sugar industry cluster development strategy is needed to be developed. The design of performance measurement system with Integrated Performance Measurement System (IPMS) approach was chosen by selecting PT 'X' as the core agent. The research stages are identification of sugar industry cluster system, stakeholder requirement and objective, Key Performance Indicator (KPI) formulation and model development. Development of performance measurement model by determining aspects and criteria of success of industrial cluster, weighting on each element using Analytical Hierarchy Process (AHP), and designing scoring board to facilitate implementation. There were 4 aspects in performance measurement, 9 criteria, 3 sub criteria and 45 KPI’s.

Integrated performance measurement system

This work deals with issues concerning the performance measurement in SMEs. There has been a literature search of existing methods and practices for performance measurement. The Characteristics of Performance Measurement and Factors Influencing Performance Measurement in SMEs are studied. Concept and objectives of the Integrated performance measurement system are developed. The structure and configuration of the performance measurement system are conceptualized.

Perancangan Sistem Pengukuran Kerja dengan Metode Intergrated Performance Measurement System (IPMS) (Studi Kasus: CV. Ekasari)

<em><span>Global business competition greatly increased sharply in Indonesia, including in the food market. To succeed and grow in the competition, an organization should use measurement and management systems derived from the strategies and capabilities of the company. CV. Eka Sari is a company engaged in the field of catering, where business activity in CV. Eka Sari is more focused on providing the bread and cakes. The continued development of the catering business, demanding CV. Eka Sari to improve in every aspects of company performance, so that the company can remain competitive with other companies. Therefore, CV. Eka Sari is in need of performance measurement that aims to evaluate and plan its performance in order to achieve organizational goals. Performance measurement methods used by the company is Integrated Performance Measurement System (IPMS), which is a method that measures the performance of an integrated and based on the wishes of stakeholders. Objectives are determined to meet the wishes of stakeholders, so that will be determined key performance indicators. From the results of the identification, obtained 22 key performance indicators. To determine the performance criteria that need more attention then be weighted. Weighting is done using Hierachy Analytical Process (AHP). Weighting results generated from that aspect that must be considered are aspects of the process, then the performance criteria that must be considered, namely improving the efficiency and effectiveness of production, and Key Performance Indicators to be very aware of is the number of defective products.</span></em>

English

The purpose of this study is to observe the integrated performance measurement system (IPMS) based on the perspective of Small and Medium Enterprises (SMEs). Building on the upper echelons perspective, the study investigates the role of SME entrepreneurs/top management leadership in determining the implementation of IPMS to assist them in making decisions. IPMS is a useful managerial tool for measuring and improving the decision-making and control process among the SMEs. Our results, based on a survey administered to 90 SMEs, reveal that leadership style has no direct effect on the IPMS practice. Instead, the decision-making style mediates the relationship between the leadership style and IPMS. Regardless of the different leadership styles, we find that a comprehensive decision approach is the way of making decisions that emphasize the integration between financial and nonfinancial measures, and between internal and external factors.

Adopting of Balanced Scorecard by Manufacturing Firms in Bahrain: An Empirical Study

Performance measurements play an important role in understanding the determinants of successful performance of firms. The balanced scorecard is one of the integrated performance measurement systems that has wide acceptance in several countries. The prior studies investigated different aspects of balanced scorecard in the developed countries, but this study contributes to the performance measurement literature by collecting evidence about the extent of adoption the balanced scorecard in one of the developing countries such as Bahrain. Also, this study statistically examined the effect of a firm's size on adopting balance scorecard. The main instrument in surveying the Bahrain firms is a questionnaire. The findings rejected the null hypotheses. It is found statistically that there are differences between Bahraini manufacturing firms in adopting the balanced scorecard. Also the study found that there is effect of the firm's size with the growing use of non-financial measures by the BSC adopters.

The challenges of integrated performance measurement systems

Purpose – The purpose of this paper is to explore some of the challenges involved in the development of integrated performance measurement systems (PMS). In particular, given the difficulties involved in the development process, and the “inherent incompleteness” of PMS, the authors seek to investigate whether and how these difficulties may challenge the integrating role of PMS and the eventual influence of alternative integrating mechanisms on this role. Design/methodology/approach – The paper combines studies on PMS with empirical findings related to Monnalisa, a medium-sized Italian family firm, which designs and sells children ' s wear and accessories. Over the last ten years Monnalisa has adopted various design frameworks (such as the balanced scorecard and the integrated report) for integrated PMS. Through an analysis of the PMS development process within the company, the authors explore the challenges involved in this process. Findings – In the case of Monnalisa, despite the adoption of a design framework for integrated PMS, various critical issues emerged during the implementation phase, mainly as a consequence of tensions between different performance dimensions and the need for creativity. While these critical issues compromised the integrating role of PMS, alternative integrating mechanisms (such as the direct intervention of the founder and social interaction) were stimulated and worked alongside PMS in achieving organizational integration. In so doing, these mechanisms operated in different ways, by complementing incomplete PMS when they were failing to achieve organizational integration, or improving their integrated nature. Originality/value – Although the literature acknowledges some of the challenges involved in PMS development, understanding how to manage these challenges and how they actually affect PMS require further investigation. This paper provides new insights on the challenges involved in the development process (particularly in relation to the tensions caused by creativity, unpredictability, time gaps between operations and targets, as well as the distinct priorities of different levels of customers), and on the role played by alternative integrating mechanisms in the management of these challenges. While the founder ' s direct intervention may be peculiar to the context of medium-sized enterprises, the role played by social integrating mechanisms suggests potential ways to overcome the challenges of integrated PMS also within larger firms.

Developing Integrated Performance Measurement System using Component Based Approach

In an industrial context defined by more acute competition, performance measurement becomes a control tool. The Business Intelligence module of Manufacturing Execution System (MES) software achieves Performances analysis function. However, the implementation of performance indicators in information system is a difficult problem. Indeed, the enterprises need methods to specify and to install their Performance Measurement System (PMS). In this paper, we propose a methodology of performance indicators implementation. We use the UML language to develop PMS model and Component Based Programming for its implementation. This method facilitates Performances Measurement System design and implementation.