Performance Measurement Framework Research Articles

Framework for Operational Performance Measurements in Small and Medium Scale Industries Using Discrete Event Simulation Approach

Framework for Operational Performance Measurements in Small and Medium Scale Industries Using Discrete Event Simulation Approach

Framework for Operational Performance Measurements in Small and Medium Scale Industries Using Discrete Event Simulation Approach

Globally, production systems must cope with limitations arising from variabilities and complexities due to globalization and technological advancements. To survive in spite of these challenges, critical process measures need to be closely monitored to ensure improved system performance. For production managers, the availability of accurate measurements which depict the status of production activities in real time is desired. This study is designed to develop an operational data decision support tool (ODATA-DST) using discrete event simulation approach. The work-in-process and processing time of each workstation/buffer station in a bottled water production system were investigated. The status of each job as they move through the system was used to simulate a routing matrix. The production output data for 50cl and 75cl product from 2014-2016 were collected. A mathematical model for routing jobs from the point of arrival to the point of departure was developed using discrete event simulation. A graphical user interface (GUI) was designed based on the factory’s performance measurement algorithm. Simulating the factory’s work-in-process with respect to internal benchmarks yielded a cycle time of 4.4, 6.23, 5.04 and throughput of 0.645, 0.455, 0.637 for best case scenario, worst case scenario and practical worst case scenario respectively. The factory performed below the simulated benchmark at 26%, 28%, 28% for the 50cl and at 51%, 54%, 59% for 75cl regarding the year 2014, 2015 and 2017 respectively. Performance measurement decision support tool has been developed to enhance the production manager’s decision making capability. The tool can improve production data analysis and performance predictions.

A practitioner’s guide to the design of strategy map frameworks

PurposeThe purpose of this study is to synthesise the prior literature on strategy maps to develop a practitioner’s guide to the design of strategy map frameworks. Robert Kaplan and David Norton introduced the strategy map in their 2000 Harvard Business review article. A strategy map visually represents how the critical elements of an organisation’s strategies are linked together. In an organisation’s strategy execution process, a strategy map complements a performance measurement framework such as the balanced scorecard.Design/methodology/approachThis is a technical paper, which primarily builds on the prior literature on the strategy map design. In particular, this study reviews 41 publications on strategy maps in the period 2000-2015, including observation of 333 strategy map frameworks.FindingsThis study develops 14 design principles across seven features of a strategy map framework. This study also identifies a significant lack of empirical research on strategy map design features and principles.Research limitations/implicationsFuture research could examine whether and why various design features and principles could exert different or same effects (e.g. decision-relevance).Practical implicationsThe developed design features and principles can be used by practitioners as guidance for developing customised strategy maps for their organisations.Originality/valueThis paper contributes to the literature by serving as a “one-stop shop” for both practitioners and researchers seeking a comprehensive understanding of the current state of the strategy map design features and principles.

PERANCANGAN KERANGKA PENGUKURAN KINERJA BALANCED SCORECARD DENGAN METODE QUALITY FUNCTION DEPLOYMENT PADA PT. MML

PT. MML as electronic retail company was founded in 2010. This company doesn’t have performance measurement that can cover the whole company performance that is needed. Moreover, the system of performance measurement is partial. The outcome of measurement is only evaluated by related manager and it doesn’t involve other department manager thus improvement that is conducted, doesn’t notice the other impact that is given to another department performance. On that word, designing Balanced Scorecard performance measurement framework with Quality Function Deployment method is required to framework of performance measurement as integrated strategic measurement tool for all departments. In designing that framework needs some data such as interview data, and questionnaire data which is intended to Top Manager for determining performance measures, customer and staff for determining performance driver by using type of sampling is simple random sampling. Besides, matrix of House of Quality roles to decide performance measure with its performance driver, while matrix of QFD II roles to design strategic map and diagram of cause-effect relationship. Based on simulation the result of performance measurement for financial perspective is 3.1 (quite good), customer perspective is 3.51 (good), internal business process perspective is 4.27 (very good), learning and growth perspective is 4.33 (very good). Keyword : Kerangka pengukuran kinerja, Balanced Scorecard, Quality Function Deployment

Title V Maternal and Child Health Services Block Grant Priority Needs and Linked Performance Measures: Current Patterns and Trends (2000-2015).

Objective As part of the Title V Maternal and Child Health (MCH) Services Block Grant, administered by the Health Resources and Services Administration's (HRSA's) Maternal and Child Health Bureau (MCHB), states are required to conduct a comprehensive needs assessment identifying MCH priorities every 5years. The most current needs assessment (2015) occurred after a transformation of the program, in which a new performance measurement framework was created. This analysis examined current patterns and trends in state MCH priorities and selected performance measures to identify changing needs and inform technical support. Methods Multiple coders categorized: (1) state priority needs from 2000 to 2015 into focus areas and subcategories for examination of current, diminishing, and emerging needs; and (2) the selection of linked national and state performance measures in 2015 for all 59 states and jurisdictions. Results Between 2000 and 2015, the proportion of states with a need around pre- and inter-conception care increased from 19% to 66%. More states had needs in the breastfeeding subcategory (42%) compared with 20% of states or less in previous years. Fewer states had needs around data capacity than in past years. Emerging needs included supporting families/relationships. The most commonly selected national performance measures (NPMs) were around breastfeeding and well-woman visits. The state performance measures (SPMs) analysis also emphasized assets, with measures around community/context and positive development. Teen births and postpartum depression were areas where multiple states had SPMs. Conclusions for practice Increasing and emerging needs may help to inform technical assistance and future national measures for the Title V program.

Federal Property and Privatization Policy in Russia in 2017

2016 saw first publication of data from a performance measures framework for federal property management that was adopted on January 29, 2015 by Russian Government’s executive order No. 72 in lieu of performance measures for a public sector monitoring conducted by Rosstat in the early 2000s in pursuance of the Russian Government’s executive order No. 1 dated January 4, 1999 (as further amended on December 30, 2002). The performance measures framework contains data for the number of federal state unitary enterprises (FSUEs) and joint-stock companies (JSCs) with government equity participation that were previously published in privatization programs over a 3-year period (since 2011) and one-year period (prior to 2011). A new Forecast Plan (Program) for Federal Property Privatization and Guidelines for Federal Property Privatization for 2017–2019 adopted early in 2017 contains data dated only as of early 2016. As of early 2017, according to the Report of the Federal Agency for State Property Management (hereinafter Rosimushchestvo) on the implementation of privatization program for 2017–2019, the Russian Federation owned 1108 FSUEs and held an interest of 11 and 17 percent in 1416 JSCs and LLCs, respectively, marking a decline from the previous year’s number of economic agents with the same legal form of business. However, developments and processes that took place in 2017 only can be described using data from the performance measures framework for federal property management.

Benchmarking Nature-Based Solution and Smart City Assessment Schemes Against the Sustainable Development Goal Indicator Framework

Increasing global urbanization yields substantial potential for enhanced sustainability through careful management of urban development and optimized resource use efficiency. Nature-based solutions (NBS) can provide a means for cities to successfully navigate the water-energy-climate relationship, thus enhancing urban resilience. Implementation of NBS can improve local or regional economic resilience underpinned by the sustainable use of natural resources. The innovative governance, institutional, business, and finance models and frameworks inherent to NBS implementation also provide a wealth of opportunity for social transformation and increased social inclusiveness in cities. The ultimate benefit of NBS implementation in cities is increased livability, which is typically measured as a function of multiple social, economic and environmental variables. Given the range of different interventions classified as NBS and the cross-sectoral character of their co-benefits, different assessment schemes can be used to evaluate NBS performance and impact. Herein, performance and impact indicators within three robust NBS- and Smart City-related assessment schemes – Mapping and Assessment of Ecosystems and their Services (MAES), Knowledge and Learning Mechanism on Biodiversity and Ecosystem Services (EKLIPSE), and Smart City Performance Measurement Framework (CITYkeys) – were critically analyzed with respect to Sustainable Development Goal (SDG) 11, ‘Make cities and human settlements inclusive, safe, resilient and sustainable’. Each selected assessment scheme was benchmarked with respect to the Inter-Agency Expert Group on SDG Indicators’ global indicator framework for the sub-objectives of SDG 11. The alignment between each of the selected NBS assessment schemes and the SDG indicator framework was mapped with particular emphasis on consistency with city-level framework indicators for each SDG 11 sub-objective. The results were illustrated as composite scores describing the alignment of the analyzed NBS and Smart city assessment schemes with the SDG 11 sub-objectives. These results facilitate NBS assessment scheme selection based on alignment between each analyzed assessment scheme and specific SDG 11 sub-objectives. Cities face multiple challenges amidst a complex hierarchy of legislative, regulatory and other stakeholder obligations. The present study showed that strategic selection of an NBS assessment scheme which closely aligns with one or more sub-objectives within SDG 11 can maximize operational efficiency by exploiting synergies between evaluation schemes.

Upgrade Evaluation of Traffic Signal Assets: High-resolution Performance Measurement Framework

Agencies that have large-scale traffic signal systems under their purview often have to face asset upgrade decisions. As one of the most advanced traffic control technologies, Adaptive Traffic Control Systems (ATCS) are among the options that must be taken into consideration. Having in mind the complexity of benefits and costs stemming from ATCS investments, there is a need for information-rich performance measures (PM) used in the evaluation and decision-making. However, individual PMs are often not suitable for evaluating the multidimensionality of ATCS operations, due the inherent variability of ATCS control parameters. To expand the range of PMs used in ATCS evaluation, this research develops a new PM, i.e., average arrivals on green ratio, and proposes a refinement of average delay PM to account for queue formation. The paper also presents an application framework for a multi-criteria analysis, assuming a combination of the proposed and existing PMs. In addition to presenting the analytical PM formulation, the evaluation methodology uses microsimulation for a case study comparison between actuated-coordinated and ATCS operations. The results include a comparison between previous and proposed PMs, based on the processed simulation data as well as field data. In conclusion, the proposed PMs have a high transferability potential, low data collection cost, and high data quality, thus being suitable for use in decision processes for signal asset investment. Finally, this research opens up further opportunities for advancing decision-support methods for traffic operations asset management.

Holdings-Based Fund Performance Measures: Estimation and Inference

This paper introduces a panel regression framework for holdings-based investment performance measures. Fixed effects decompose performance into time series and cross-sectional predictive ability. Time-series predictive ability is the traditional focus, but cross-sectional ability strongly influences classical measures. A large component of the cross-sectional ability is “buy-and-hold drift,” where buy-and-hold weights drift towards higher alpha stocks. Controlling for this, we find that the time-series predictive ability of the typical equity mutual fund is insignificant or even negative before costs, and the cross-sectional predictive ability is typically no better than a buy-and-hold strategy.

Constructing an Evaluation Framework for Eco-Museum Operations-Management Performance, Based on the Case of Jhushan, Taiwan

The bamboo-art industry in Taiwan’s Jhushan Township is inseparable from local life. In the face of local industrial-development difficulties in smaller towns, the Taiwan government aimed to achieve a range of (re)development goals using eco-museums as collaboration platforms and required such museums to combine their operations management with cultural preservation, local industrial development, and local residents’ goals. As such, the likely future performance of such operations management has emerged as a crucially important factor in decision-making about whether such museums should be constructed. This study, therefore, reviews the relevant literature on the operations-management performance of museums, with special attention to eco-museums, and proposes an operations-management performance measurement framework for eco-museums based on that review and a two-stage questionnaire administered to experts. The first stage utilized the Fuzzy Delphi Method, which focuses on impact factors, and the second, the Analytica Network Process Method, deals with performance factors. The results indicate that the key impacts on the performance of eco-museums and their operations management were, in order of importance, (1) community symbiosis, (2) cultural inheritance, and (3) regional revitalization. The preservation of cultural heritage, local identity, and community participation are the most important criteria in the operations management of eco-museums, and Jhushan Town can promote such museums through these guidelines.

Automated performance measurement for 3D building modeling decisions

Abstract Building information modeling (BIM) is instrumental in documenting design, enhancing customer experience, and improving product functionality in capital projects. However, high-quality building models do not happen by accident, but rather because of a managed process that involves several participants from different disciplines and backgrounds. Throughout this process, the different priorities of design modelers often result in conflicts that can negatively impact project outcomes. To prevent such unwanted outcomes from occurring, the modeling process needs to be effectively managed. This effective management requires an ability to closely monitor the modeling process and correctly measure the modelers' performance. Nevertheless, existing methods of performance monitoring in building design practices lack an objective measurement system to quantify modeling progress. The widespread utilization of BIM tools presents a unique opportunity to retrieve granular design process data and conduct accurate performance measurements. This research improves upon previous efforts by presenting a novel application programming interface (API)-enabled approach to (a) automatically collect detailed model development data directly from BIM software packages in real-time, and (b) efficiently calculate several modeling performance measures during schematic and design development phases of building projects. These indicators can be used to properly arrange modeling teams in the quest for high-quality building models. The specific objectives of this study to examine the feasibility of a proposed automated design performance measurement framework, and to identify optimal modeling team configurations using empirical performance information. A passive data recording approach allows for the real-time capture of comprehensive user interface (UI) interaction and model element modification events. The proposed framework is implemented as an Autodesk Revit plugin. Next, an experiment is conducted to capture data using the developed Revit plugin. Experiment participants' individual production rates are estimated to establish the validity of the proposed approach to identify the optimal design team configuration. The presented approach uses the earliest due date (EDD) sequencing rule in combination with the critical path method (CPM) to calculate the maximum lateness for different design team arrangements.

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.

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.

An enhanced framework for assessing the operational performance of public-private partnership school projects

PurposeA study of the current practices for evaluating the ex-post performance of public-private partnership (PPP) school projects in Australia via literature review and qualitative case studies has found that no consistent approach exists for evaluating operational performance. A detailed critique of international PPP audits and practices has identified existing gaps in ex-post performance evaluation. Through a process of comparative analysis and industry confirmation, a performance analysis technique aligned with international practice has been developed that can be utilised by the educational departments across Australia to evaluate the ex-post performance of PPP projects (PPPs). The paper aims to discuss these issues.Design/methodology/approachThis paper opted for qualitative archival analysis of case studies using pattern matching, explanation building, time series, and comparative analysis. The data used for document analysis included value reports, project summaries, and contract documents, as well as local and international audit guidelines.FindingsThis paper reviewed current practices, identified a range of processes, and reported the best practices. However, consideration of the approaches taken in the UK and Australia for evaluating operational performance indicates that current techniques lack consistency.Research limitations/implicationsThe developed ex-post performance measurement framework is limited to Australian PPP school projects and, at this stage, cannot be generalised to other social PPP projects.Practical implicationsThe paper includes implications for the development of better performance evaluation practices and audits.Social implicationsAn enhanced framework for measuring operational performance will increase the accountability of taxpayers in the content of their utilisation by the government.Originality/valueThis paper presents an enhanced ex-post performance measurement framework for education departments across Australia.

Performance Measurement of Military Supply Chains

Defence is the largest item of physical expenditure in the Union budget presented by the Government of India every year. A substantial portion of the budget is allocated for equipping the army, a task which is performed by a very complex and extended supply chain. Therefore, it is essential that the performance of the military’s supply chain is measured and monitored, so that the nation derives value from the expenditure made on the supply chain. Moreover, the effectiveness of the supply chain provides the defence forces competitive advantage, and thus its performance has a direct bearing on the country’s security. The wars in future are more likely to be a competition between the rival supply chains. Development of a suitable framework for measuring the performance of any extended supply chain is a challenging task. The challenge arises from the very design and nature of the supply chain construct. The entities which constitute the supply chain invariably have varied goals and objectives, and therefore more than often, they indulge in adversarial practices and operate in an environment of mutual distrust. The paper dwells upon the conceptual development of an ideal performance measurement framework for the military supply chain. It compares the military and commercial supply chains, and discusses some of the principal performance measurement frameworks, like the Balanced scorecard, Supply Chain Operations Reference model amongst others used by the commercial supply chains. It also discusses the endeavours made towards supply chain performance evaluation by some of the modern militaries to include that of the United States, United Kingdom, and Australia. It also briefly covers the Indian approach to evaluation of supply chain performance. The paper brings out the relevance of the subject, challenges there in, and its importance to the country’s armed forces.

Factors affecting construction performance: exploratory factor analysis

The present work attempts to develop a multidimensional performance evaluation framework for a construction company by considering all relevant measures of performance. Based on the previous studies, this study hypothesizes nine key factors, with a total of 57 associated items. The hypothesized factors, with their associated items, are then used to develop questionnaire survey to gather data. The exploratory factor analysis (EFA) was applied to the collected data which gave rise 10 factors with 57 items affecting construction performance. The findings further reveal that the items constituting ten key performance factors (KPIs) namely; 1) Time, 2) Cost, 3) Quality, 4) Safety & Health, 5) Internal Stakeholder, 6) External Stakeholder, 7) Client Satisfaction, 8) Financial Performance, 9) Environment, and 10) Information, Technology & Innovation. The analysis helps to develop multi-dimensional performance evaluation framework for an effective measurement of the construction performance. The 10 key performance factors can be broadly categorized into economic aspect, social aspect, environmental aspect, and technology aspects. It is important to understand a multi-dimension performance evaluation framework by including all key factors affecting the construction performance of a company, so that the management level can effectively plan to implement an effective performance development plan to match with the mission and vision of the company.

Factors influencing the choice of performance measures for the oil and gas supply chain – exploratory study

The current value of the oil price per barrel has severely impacted the oil and gas industry around the world. This has worsened the situation due to the fact that it has long been the backbone of the country through the energy supply, employability and also its role as the major economic contributor. Due to multiple external factors that affect this industry such as crude oil availability, oil price fluctuation, high transportation cost, as well as exposure to high uncertainties, it is sensible for the supply chain practitioner to shift their focus in managing their resources and capabilities. To maximise the potential of supply chain activities in improving overall company performance, it is important to pay extra attention on their performance management. This includes the design of meaningful performance measurement framework to assess organisational performance. This study will explore the influencing factors in choosing performance measures for the oil and gas supply chain. Five in-depth interviews were conducted with supply chain experts within the industry. Eight influencing factors have been identified through the interviews.

PERAN BUDGET EMPHASIS DALAM MEMODERASI HUBUNGAN PARTISIPASI ANGGARAN TERHADAP SENJANGAN DAN KINERJA MANAJERIAL (Studi Pada 30 SKPD Kota Ternate)

This study aims to empirically test the effect of budgetary participation on budgetary slack and managerial performance. The study aims to empirically examines whether budget emphasis moderates budget participation on budget slack and managerial performance of Municipality Government of Ternate. Using moderated regression analysis, this study found that, 1) budgetary participation negatively affect budgetary slack 2) budget participation influences managerial performance and 3) budget emphasis moderates the relationship between budget participation on budgetary slack and managerial performance. The theoretical implications of this study indicate that agency and contingency theory could be used as a complement to a more effective budget participation process by integrating the expected performance measurement framework.

PERAN BUDGET EMPHASIS DALAM MEMODERASI HUBUNGAN PARTISIPASI ANGGARAN TERHADAP SENJANGAN DAN KINERJA MANAJERIAL (Studi Pada 30 SKPD Kota Ternate)

This study aims to empirically test the effect of budgetary participation on budgetary slack and managerial performance. The study aims to empirically examines whether budget emphasis moderates budget participation on budget slack and managerial performance of Municipality Government of Ternate. Using moderated regression analysis, this study found that, 1) budgetary participation negatively affect budgetary slack 2) budget participation influences managerial performance and 3) budget emphasis moderates the relationship between budget participation on budgetary slack and managerial performance. The theoretical implications of this study indicate that agency and contingency theory could be used as a complement to a more effective budget participation process by integrating the expected performance measurement framework.

Performance vs prospectus = transparency in German closed-ended real estate funds?

PurposeThe purpose of this paper is to close the transparency gap by comparing ex ante and ex post performance disclosure, thus providing important conclusions regarding the transparency of this important German market segment.Design/methodology/approachClosed-ended real estate funds (CEREFs) are one of the biggest segments of unlisted private equity funds in Germany. CEREFs have a central “profitability promise” that is based on ex ante forecasts given in the prospectus. Typically, equity is tied to these investments for up to 20-30 years, leaving investors highly insecure whether their expectations will be fulfilled and fund managers actually achieve prospected performances ex post.FindingsThe performance variance analysis of all German CEREFs outstanding during the global financial crisis reveals that prospect-performance disclosures as well as prospect-performance variances cause substantial problems in Germany due to overestimation biases of many fund managers.Research limitations/implicationsAs typical for the recent scholarly debate, also the past disclosure practice in Germany prohibits a long-term performance analysis, unless researchers apply instruments of modern investment analysis like comprehensive financial plans (“Visualisation of Financial Implications)”.Practical implicationsThe transparency developments in CEREF-reporting of the last decade deliver precise recommendations regarding the internal and external performance variance analysis, risk-profiles and stress tests for the future fund management.Social implicationsThe introduced methodology would increase transparency in the segment of CEREF and, thus, improve investor protection. Since private households in Germany mainly acquire these funds, this is a contribution to sustainability in private asset management.Originality/valueThe paper develops a new methodological framework for performance measurement of unlisted funds. It then assesses for the first time the impact of transparency and trust on fund performances by applying a performance variance analysis.