Performance measurement system design for continuous improvement in cellular manufacturing
The shortfalls of traditional measures of manufacturing performance are well documented and the drive to become World Class has led many industrialists and academics to explore alternative methods of performance measurement. Empirical research in the areas of management accounting practice, strategy formulation and goal congruence has established some key cornerstones. There remains, however, a shortage of research into the behavioural consequences of performance measures and the potential for exploiting this link in the pursuit of continuous improvement activities. This research uses the production facility of Dunlop Cox Ltd. as a case study in which an analysis of the existing performance measurement system and its behavioural consequences provides the basis for the introduction of a Cell Generated Performance Measurement System which drives kaizen and can be compared directly with the existing, imposed, system.