Performance Measurement Model Research Articles

Standard setting and carrier differentiation at seaports

The deployment of mega container ships with a capacity for 18,000 + TEU on major trade lanes is a recent trend within the ocean shipping industry. Larger ships pose multiple challenges to ports and hinterland connections as well as to the beneficial cargo owners. To achieve maximum utilization of their larger vessels, carriers have entered cooperative global alliances on predetermined routes, resulting in new discharge patterns at U.S. ports. These multi-partner networks involve several competing firms which voluntarily and interactively engage in service delivery. Container carriage is increasingly competitive, and requires continuing cost reductions. There is increasing evidence, however, that cargo shippers are less satisfied with the service their supply chains are receiving. Standardizing process performance through supply chain integration and removing inefficiency will be needed to stabilize the international shipping market, but the question remains how ocean carriers will be able differentiate themselves and create improved supply chain performance. This paper suggests an answer through a simple standard performance measurement model. We will suggest that old systems of carrier competition could evolve to greater cooperation and coordination between business competitors, a state sometimes called “coopetition”, by development of standard setting processes for sharing information while retaining specific service delivery structures to provide differentiated value to customers.

A Variance Maximization Based Weight Optimization Method for Railway Transportation Safety Performance Measurement

Based on the idea of maximizing variances, a weight optimization method is proposed in this research to improve railway transportation safety evaluation. Firstly, the main evaluation indicators that can reflect the safety of railway transportation are selected as the independent variables. Secondly, in order to avoid the influence of experts’ empowerment on the evaluation results of railway transport safety, fuzzy set theory is introduced to generate the variation range of the weights of each evaluation index, which is used as the constraint of weight optimization model. Then, the weight optimization model for railway transportation safety performance measurement is established based on the principle of maximum variance. The structure of the optimization model shows the characteristics of the quadratic programming model. Therefore, the optimal weight is calculated by using the branch bounded algorithm, which is one of the quadratic programming model solution algorithms. Finally, the empirical analysis of the safety performance measurement for 18 railway bureaus shows that using the optimized index weight for safety performance measurement can not only make full use of prior information but also ensure that 18 railway bureaus can be distinguished to the maximum extent.

Development of a multi-level performance measurement model for manufacturing companies using a modified version of the fuzzy TOPSIS approach

This paper aims to develop a comprehensive hierarchical performance measurement model. The proposed model not only determines a manufacturing company’s overall performance within its industry but also obtains its strengths and weaknesses in critical activities. It lets one to combine a company’s performance scores in seventeen critical activities with important industry-specific objectives to obtain a single overall performance score by using a 4-Point Fuzzy Scale and a modified fuzzy version of the Technique for Order Preference by Similarity to Ideal Solution approach. The calculated overall performance scores provide a ranking order among manufacturing companies within their industry. In addition, it also enables each company to compare its performance in critical activities with respect to other companies in its industry. Furthermore, the performance measurement model has the capability to determine what a company should do to improve its performance in critical activities. This paper provides an example to illustrate the application of the proposed model.

Benchmarking manufacturing industries based on green practices

PurposeThe purpose of this paper is twofold: first, to develop a statistically reliable and valid model of performance measures (PMs) to observe the environmental behavior of different enterprises; second, at benchmarking the enterprises based on their green practices.Design/methodology/approachA PM model has been proposed using an empirical analysis of manufacturing industry. The developed model has been tested using structural equation modeling technique. The level of green manufacturing (GM) performance in different sectors and sizes of Indian manufacturing industry has been studied and benchmarked using hierarchical cluster analysis with one-way ANOVA.FindingsThe results indicate that top management commitment and product design are the root PMs for the success of GM practices. It has been found that chemical, automotive, food and pharmaceutical industries are the high performing sectors. It has also been found that large scale enterprises are performing better than medium-sized enterprises which are doing better than small and micro enterprises in GM practices.Research limitations/implicationsThe indicators/variables in questionnaire are subjective in nature and collected data are from Indian manufacturing organizations only.Practical implicationsThe governments, trade bodies and NGOs can use the proposed model for measurement of green performance of any manufacturing industry. The benchmarking can be used by the different policy influencing and making agencies to develop future policies for the improvement. The industry can also use the benchmarking for its peer performance improvement.Originality/valueThe major novelty of the paper is benchmarking the green performance of manufacturing industries based on the different sectors and sizes using empirical investigation. The level of GM performance in different sectors and sizes of industries has been studied and benchmarked using hierarchical cluster analysis with one-way ANOVA.

An empirical and comparative analysis of E-government performance measurement models: Model selection via explanation, prediction, and parsimony

Driven by the growing importance of the digital provision of government services (e-government), recent research has sought to develop and test conceptual models of citizen satisfaction and trust with these services. Yet, there remains little agreement on how to optimally model these relationships with regards to the somewhat divergent goals of explanation and prediction of citizen trust. In this paper, we test two prominent modeling paradigms of the e-government satisfaction-trust relationship: the “service quality” model and the “expectancy-disconfirmation” model. We compare several variations of these models for their in-sample explanatory abilities, out-of-sample predictive abilities, and parsimony. To test the models, we examine a pooled, cross-agency sample of survey data measuring citizens' experiences with and perceptions of three important and widely accessed U.S. federal e-government services—the webpages of the Social Security Administration, the Internal Revenue Service, and the U.S. Census Bureau. Our findings suggest that while the expectancy-disconfirmation paradigm performs well in explanation, a parsimonious model with an “overall quality-satisfaction-trust” link is best suited for predicting trust. In addition, the service quality paradigm offers the best compromise between predictive accuracy and explanatory power. These findings offer new insights for academic researchers, government agencies, and practitioners, especially those deciding upon an empirical model to adopt to measure e-government satisfaction and its impact upon citizen trust.

Design of a CRM Level and Performance Measurement Model

The main objective of the contribution is to create the CRM (Customer Relationship Management) level and performance measurement model. It is almost impossible to create an absolutely universal model. On the other hand, we can develop a model in a particular sector based on the most advanced CRACK method with nine key areas such as Brand management, Offer management, Classic marketing, Sales activities, Service and support activities, Logistics operations, Compliance with promised terms, Internet activities, Customer Support, and Complex indicators. The monitored criteria in the key areas were determined on the basis of an objective questionnaire survey conducted by the pharmaceutical industry on the B2B market in the Slovak Republic. One of the primary requirements for the construction of the model was to obtain information to help predict the future development of performance because only in this way can the company correct CRM activities. Based on the data acquisition methodology, we can evaluate the CRM level and performance measurement model not only as a current state indicator but also as a foresight with insight based on hindsight because companies that choose to get info from customers will want to get closer to the desired optimal values of the customers.

Performance measurement models and their influence on net fundraising of investment funds

ABSTRACT This article aims to analyze the relation between third- and fourth-order conditions and risk factors and their adequacy to return, performance, and net fundraising. The factors used to determine fund performance and, consequently, their relation with fundraising are: market return, size, book-to-market, profitability, investment, co-skewness, and co-kurtosis. The funds constituting the sample are those classified as Free Stocks (within the period from April 2001 to April 2015). Methodologically, this study has two phases. The first one refers to estimating the parameters that represent fund sensitivity to the factors and the comparison of the capital asset pricing models (CAPM), Fama-French-Carhart 4-factor (FFC), Fama-French 5-factor (FF5), Fama-French 5-factor with momentum (FF5M), added or not with co-moments, by means of the fixed-effects procedure. The second one deals with verifying the relation between performance and net fundraising. The models were reestimated through moving time windows, so that the alpha calculated on each of them represented fund performance within the immediately subsequent period. We also estimated the relation fundraising-performance through cross-section regressions, with rates and age as control variables. The results showed that the co-skewness and co-kurtosis coefficients are not that relevant for determining performance and net fundraising of investment funds. Among the risk factors, market, size, and momentum are the significant parameters for fund returns. The FFC and FF5M models are those with greater explanatory power regarding return specification. There is also evidence of convexity in the relation between performance and fundraising.

A hybrid multiple criteria decision making approach for measuring comprehensive performance of reverse logistics enterprises

Abstract The area of reverse logistics has recently received considerable attention and is an important business policy. The performance measurement of reverse logistics is seldom studied due to the complexity and uncertainty of its operations. This paper provides a multi-criteria performance measurement model to assess the reverse logistics enterprise’s performance by considering performance attributes such as product lifecycle stages, strategies, processes, capabilities, and perspectives and measures. In developing the performance measurement model, a hybrid multi-criteria approach combining DEMATEL, fuzzy ANP and AHP methods are applied. Furthermore, the relative importance of these attributes and their criteria with respect to each other and their contribution to the overall performance are affected by the competitive outlook considered by the reverse logistics enterprises. The performance evaluation model developed in this paper incorporates relevant attributes and achieves a more realistic representation of the enterprise’s performance by calculating the overall comprehensive performance index. This study provides decision makers a basis for improving the reverse logistics enterprise performance.

A Quality Scorecard for the era of Industry 4.0

A Quality Scorecard (QSC) performance measurement model is proposed to evaluate the quality aspects of an organization in Industry 4.0. To design a QSC for the ‘Fourth Industrial Revolution’, we examined existing measures regarding costs of quality items. The measurement system was refined by simplifying duplicate measures and incorporating quality elements considered in recent international standard revisions. This paper explains the QSC system and its practical use. Two key results were obtained. First, the QSC measures were reduced from a total of 139 potential measures to 15, 30, and 60 for simple, general, and detailed models, respectively. Second, a so-called QSC wheel, a virtual tool to assess weaknesses in existing performance measurement systems, was developed. The QSC wheel may effectively be used in analysing existing performance measurement systems, and may also be applied to evaluate qualitative performance levels in Industry 4.0.

Performance measurement in supply chain

The article presents performance measurement concept with its application possibility in supply chain management. A practical performance measurement model in supply chains was also presented. Stated model comprises three key areas – transportation, resources and information technology optimization. Against each of aforementioned areas exemplar performance indicators were set. Contemplated model, pursuant to insignificant adjustments implementation, aimed to consider local aspects of supply chain partners, can be applicable in polish companies, that constitute supply chains.

Systematic mechanism for identifying the relative impact of supply chain performance areas on the overall supply chain performance using SCOR model and SEM

This research aims to introduce a systematic mechanism for developing an organization specific supply chain performance measurement (SCPM) model and for generating a single regression relationship between the overall supply chain performance (SCP) and each of the SCPM areas using an organization's numerical data. The research uses a case study conducted in a small-scale asphalt manufacturing plant located in West Texas, USA with a sample of 218 data records collected over a period of one year. In this article, the systematic mechanism is demonstrated using the data from the case study organization. It provides guidance for developing a hierarchical SCPM model for the organization using the Supply Chain Operations Reference (SCOR) model, and then to obtain the final regression equation for the overall SCP using the Structural Equations Modeling (SEM) technique. The results obtained from the SCPM mechanism are then compared with the managerial input on the SCP that was analyzed using the Analytical Hierarchical Process (AHP). The results of the comparison are used to validate the SCPM results.A major finding of this research is that the regression coefficients provide a clue for the level of sensitivity those measures have on the overall SCP under given organizational SC capacity and operating levels. The SCPM areas with higher regression coefficients reflect higher sensitivity, thus even a slight variation in the measures contributing to those areas will be contributing to a considerable impact on the overall SCP measures. The findings lead to the implication that managers should pay close attention to controlling the stability of the SC operational processes which are responsible for generating those SCP measures. The goal should be to maintain the desired output levels with the least amount of fluctuations. The regression results therefore provide insight to the managers for identifying the individual SCP measures to be managed more intensely than others based on their relative impacts on the overall SCP. The results are applicable as long as the organization does not change its organizational SC capacity and operating levels, thus can be used for better managing the SC in future.This research fulfills multiple research gaps highlighted in literature, mainly: the absence of a systematic approach to generate an organization specific SCPM model; and the absence of a SCPM system capable of generating a single cause–and-effect relationship between the overall SCP and the numerous hierarchical performance measures reflecting their relative impact. Therefore, this study can be viewed as an attempt to increase the level of awareness in the SC field. The article also proposes several future research directions to test the repeatability and validity of the proposed SCPM mechanism.

PERANCANGAN KEY PERFORMANCE INDICATORS KINERJA SUPPLY CHAIN PT. XYZ DENGAN PENDEKATAN BALANCED SCORECARD

Pengukuran kinerja Supply Chain PT. XYZ hanya melihat dari produktivitas perusahaan. Produktivitas hanya mampu mengukur kinerja proses internal, pada proses internal dalam satu hubungan rantai pasok. Perusahaan perlu merancang model pengukuran kinerja supply chain secara keseluruhan dan terintegrasi dalam suatu hubungan kausal, mulai dari pemasok, proses internal kepada pelanggan, untuk mengetahui efektivitas perusahaan rantai pasokan. balanced scorecard memenuhi perspektif yang diperlukan. Model balanced scorecard digunakan sebagai kerangka kerja untuk merancang Key Performance Indicator (KPI) dari kinerja supply chain PT. XYZ. KPI adalah desain berdasarkan 4 perspektif, yaitu: proses internal, pelanggan, pembelajaran dan pertumbuhan dan perspektif keuangan. Pembobotan untuk menentukan prioritas antara perspektif dan KPI dilakukan dengan menggunakan Analytical Hierarchy Process (AHP). Hasil dari analisis dihasilkan 20 KPI. perspektif proses internal yang berisi 9 KPI dengan berat total 21,0%, perspektif pelanggan berisi 6 KPI dengan berat total 42,6%, Belajar dan perspektif pertumbuhan berisi 4 KPI dengan berat total 17,5%, perspektif Pemegang Saham mengandung 1 KPI dengan total berat 19,0. Kata kunci: Key Performance Indicator, Supply Chain, Balanced Scorecard, Analytical Hierarchy proceses

A Pilot Framework of Corporate Real Estate Sustainable Performance Measurement (CRESPM)

Sustainability is now realised as an emerging important area and has been discussed in recent studies. Sustainability now becomes a hot issue that has been discussed not only in Malaysia but over the world. However, there is lack discussion on sustainability related to corporate real estate sustainable performance measurement (CRESPM). Corporate Real Estate sustainable performance measurement (CRESPM) is very important to discuss because it will contribute to the direction and decision making of the organisation and corporation in order to obtain maximum added value for the business and to contribute to the overall performance of the corporation. Thus, this research aimed to explore and then summarize the best performance measurement indicator related to sustainable real estate by referring to the sustainable parents’ theory. The objectives of this study includes to identify the existing CRE sustainable performance measurement indicator available from the previous research and to design a pilot model and framework for CRE sustainable performance measurement. The research uses content analysis method to analyse data gathered from literature and previous studies. The findings will be demonstrated in the form of a pilot framework model on CRESPM that will include 102 indicators of performance measurement derived from analysis. That framework soon is hope can be used as new evolution for the future exploration on CRESPM.

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.

Conceptual Model of Performance Measurement for Supply Chain Management: Value-Based Scorecard Approach

This paper offers an integrative view of value-based management (VBM) and the balanced scorecard (BSC) and supply chain management (SCM). The work answers two research questions. First, what do I measure? By presenting a conceptual model for SCM value-based scorecard consists of sequential steps with the outcomes for each step leading to naturally to the next step. In developing the model, various aspects of SC value added strategy could be expected to affect the specific mix of measures used and structural changes of balanced scorecard perspectives to fit the needs of value-based SCM. Second, how do I implement SCM value-based scorecard? By using a pyramid performance management model as a tool that can lead to the actual application of SCM value-based scorecard approach. The study uses a case-oriented example to analyze the causal relationships between the levers of the hierarchy of SCM value-based scorecard. The proposed approach in this study is called the design-oriented approach in management control literature. It is useful for all SC members to make out value-based scorecard based on strategic themes from the view of the total supply chain because each member can know how it can contribute to the total value of supply chain.

Development and Validation of a Knowledge Management Questionnaire

Purpose: The purpose of this study was to propose a reliable and valid knowledge management performance measurement (KMPM) model for enterprises. Accordingly, this study draws on the knowledge management (KM) and factors affecting the flow of knowledge and its sharing in organizations, particularly the Ministry of Education (MOE) in Oman. Design/methodology: The study explored the current status of knowledge management (KM) in the MOE in general and knowledge sharing (KS) in particular; it also explored the factors affecting (KS). Therefore, it was divided into two sections: demographics and multiple choice questions comprising five factors: KMP, KS, Attitude, Commitment, and Shared Trust. The dimensional structure of the questionnaire was investigated with a sample of 136 employees holding various positions from the 9 Directorate General at the MEO in Oman (61.8% males and 38.2% females). Findings: Based on the factor analysis results, the questionnaire emphasized five factors: KMP, KS, Attitude, Commitment, and Shared Trust. The internal consistency and concurrent validity of KMPM were verified (Cronbach's alpha = 0.944). KMPM and its factors were significantly correlated with Socio-Technical Enablers (STE) scale. The validity of KMPM was tested using concurrent validity method and revealed a significant correlation of (0.847) between the two scales. This questionnaire was proved to be relatively reliable and valid. Practical implications: The researchers developed a questionnaire to measure the reality of KM initiatives in the MOE by assessing whether the work environment: (1) nurtures and accelerates the sharing of knowledge, (2) identifies enablers and obstacles affecting the flow of knowledge and (3) trains staff to capture the proper knowledge to be able to share it with the right people at the right time in the right form and at the right cost. The employees were classified according to job title into three levels: strategic, executive, and operational. Originality/value: This paper attempts to provide a comprehensive overview of the reality of knowledge management performance (KMP) capability assessment instrument in the MOE in Oman. No such measurement instrument currently exists in Oman. The instrument not only demonstrated consistent reliability, but also provided insights into organizational readiness for KMP with regard to three main individual factors, namely Commitment, Attitude, and Shared Trust.

An IT/IS Performance Measurement Models: A Review and an Empirical Comparison

An IT/IS Performance Measurement Models: A Review and an Empirical Comparison

Design logistics performance measurement model of automotive component industry for srengthening competitiveness of dealing AEC 2015

As the free trade Asean Economic Community (AEC) causes the tougher competition, it is important that Indonesia’s automotive industry have high competitiveness as well. A model of logistics performance measurement was designed as an evaluation tool for automotive component companies to improve their logistics performance in order to compete in AEC. The design of logistics performance measurement model was based on the Logistics Scorecard perspectives, divided into two stages: identifying the logistics business strategy to get the KPI and arranging the model. 23 KPI was obtained. The measurement result can be taken into consideration of determining policies to improve the performance logistics competitiveness.

PERANCANGAN KEY PERFORMANCE INDICATORS KINERJA SUPPLY CHAIN PT.XYZ DENGAN PENDEKATAN BALANCED SCORECARD

Supply Chain performance measurement PT.XYZ had only seen from the productivity of the Company. Productivity is only able to measure the performance of the internal process, while the internal process is but one link in the chain of Supply Chain. Companies need to design a model of supply chain performance measurement as a whole and integrated in a causal relationship, ranging from suppliers, internal processes to customers, in order to know the effectiveness of supply chain companies. Balanced scorecard meet the necessary perspective. Balanced scorecard model is used as a framework for designing of Key Performance Indicator (KPI) of supply chain performance PT.XYZ. KPI is design based on 4 perspectives, that is : internal processes, customers, learning and growth and perspective financial. Weighting to determine priorities between perspective and KPI performed using Analytical Hierarchy Process (AHP). Result from th eanalysis is generated 20 KPI. Internal process perspective contain 9 KPIs with total weight 21,0 %, Customer perspective contain 6 KPIs with total weight 42,6 %, Learning and growth perspective contain 4 KPIs with total weight 17,5 %, Shareholder perspective contain 1 KPI with total weight 19,0.

A Pilot Framework of Corporate Real Estate Sustainable Performance Measurement (CRESPM)

Sustainability is now recognised as an emerging important area and is a subject of discussion in recent studies. Sustainability is a current issue discussed in various platforms not only in Malaysia but throughout the world. Despite that, there is lack of scholarly discussion on sustainability relating to corporate real estate sustainable performance measurement (CRESPM). Corporate Real Estate Sustainable Performance Measurement (CRESPM) merits serious discussion as it contributes greatly towards the direction and decision-making of the organization in attaining maximum added value for the business; and contributing to the overall performance of the corporation. Thus, this research aimed at exploring, and then summarizing the best performance measurement indicator related to sustainable real estate by referring to the sustainability parent theory. The objectives of this study include to identify the existing CRE sustainable performance measurement indicator available from previous research; and to design a pilot model and framework for CRE sustainable performance measurement. The research uses content analysis method to analyse data gathered from literature and previous studies. The findings will be demonstrated in the form of a pilot framework model on CRESPM that will include 102 indicators of performance measurement derived from analysis. The framework is hoped to be available in the near future as an evolution for the future exploration on CRESPM.