Performance measurement system for a lean manufacturing setting

Abstract

Purpose The purpose of this paper is to propose a performance measurement system for a lean manufacturing environment, which assesses the multi-dimensional performance of lean manufacturing.

Design/methodology/approach Following a case study approach, structured interviews were conducted to identify the parameters to measure the performance of a lean manufacturing apparel company. A model was developed with the analytical hierarchical process to assess the performance.

Findings The proposed model consists of three levels: first level (overall manufacturing performance), second level (criteria that represent the stakeholders’ view of manufacturing performance) and third level (sub-criteria for the criteria which represent the areas affected by lean manufacturing). The model connects indicators that measure manufacturing performance with the areas required improvements, according to their relative importance to stakeholders.

Research limitations/implications The interviewers’ perspectives were used to determine the importance of each manufacturing area for stakeholders. Key performance measures can vary from company to company.

Practical implications Managers can use this model to identify important areas for manufacturing performance and the performance improvements driven by different types of lean practices. The results revealed that identifying stakeholders’ requirements was an important aspect of evaluating manufacturing performance.

Social implications The model embeds a stakeholder approach in performance measurement, thereby providing a comprehensive model to assess performance.

Originality/value This study applies the stakeholder view to identify the multi-dimensional nature of performance in a lean manufacturing setting. It also defines the key performance measures using lean practices.