Measuring performance: The operations
perspective

Background

Interest in performance measurement

The speed with which businesses are being forced to adapt and change is massive

Crisis in measurement

Measurement myopia: measuring the wrong things

The measurement revolution: new measurment frameworks

Measurement madness: society is obsessed with measurement

Two most important questions

What do operations managers want from their measurement
systems?

How have these wants and needs
changed over the years?

The past: Pre-1980

In the period immediately following the second world the management paradigm was sales, no customer


The result - a stream of research on productivity measurement and management

Contrasting different dimensions of productivity

The measurement of total factor
productivity

criticism of single dimensional measures of
productivity

The present: 1980s–2000

Throughout the early part of the 1980s: what underpins the Japanese economic miracle?

The operations in Japanese firms were simply better managed (Schonberger, Hall)

The Toyota Production System (Monden, 1996)

Importance of kaizen (Imai, 1986)

Operations function can have a significant impact on product quality (Deming; Crosby)

How to measure the cost of
quality (Crosby; Feigenbaum; Plunkett and Dale)

Skinner’s work on manufacturing strategy

Operations had a strategic role to play in organizations

2000 and beyond

Internet technology development

Dot-com bubble

Businesses growth

Importance of partnerships and alliances

Outsource non-core activities

Data overload

Amazon.com case

About the future

The high speed of changes

Online and up-to-date perf reports

Manegers want to answer the question "How to use data more fully?"

The need of forecasting the processess

Measurement is a multi-functional discipline