PMS in manufacturing comapnies

PMS in manufacturing comapnies

1. Main arguement

   • Increasing complexity of organizations
     • Traditional financial analysis system
       • Not works well in new economy body
         • Focus on financial measure only
           • Encourage short-termism
           • Lack of strategic focus
           • Fail to provide data on quality
         • Non-financial PMS
           • Increasing
             • Balanced scoercard

2. Article's context

   • Basic steps of PMS
     • (1) Strategic planning
       • choose a strategic framework
         • Integrate the business objectives
           • Create a shared vision
     • (2) Operationalization
       • Developing performance measures
         • Monitor strategy & objectives
           • Set short & long term PM
     • (3) Review
       • Implications for performance improvement initiatives
         • Reach key business goals
           • Continuously & periodically review
   • Background of PMS
     • Field of PM is diverse
       • Strategic
       • General management
       • Finance and accounting
     • Approaches to performance management
       • Traditional
         • Focus on financial indicators
       • Modern
         • Creation values for shareholders
       • Comprehensive
         • Emphasize use of non-financial indicators

3. Research & methodology

   • Case study: 6 large sizes manufacturing companies
     • Research's main goals
       • (1) Analyze the current form of PMS
       • (2) Determine the features to design effective PMS
     • Qualitative research
       • 10 open questions
         • PMS roles company plays
         • Weakness of current PMS
         • Framework use for PM
         • Characteristics functioning PMS
         • Main components make up effective PMS
         • Crucial elements of successful performance management
         • Most important indicator
         • Key financial % non-financial indicator
         • Factors affecting the performance
         • Relationship between PM and strategy

4. Findings

   • Factors most affected performance
     • All companies
       • Effective management
       • Human resources
   • Key financial & non-financial indicators currently use for PMS
     • Two companies
       • BSC
     • the rest of the ocmpanies
       • KPI or ratio indicator
   • Qualitative measures are far less integrated
     • companies not using BSC
       • Measure mainly complaint rate & productivity
   • Effective PMS
     • Eight specific PMS roles
       • Current PMS only fulfil a few functions
         • Half of the companies
           • Used PMS to monitor strategic objectives
         • Half of the companies
           • Used PMS perform business operations
   • Weaknesses of current PMS
     • One company
       • Needs to modify the PMS system
         • HR area
         • Process analysis
     • Half of companies
       • Not necessity to modify them
     • Two company
       • Low explanatory
       • Complicated on data collection