Showing papers in "International Journal of Operations & Production Management in 2000"
TL;DR: It is concluded that specific processes are required to continuously align the performance measurement system with strategy and when these processes are combined with a well defined model of strategic success, the measurement system can enhance the strategic management process by challenging the assumptions and the strategy itself.
Abstract: This paper addresses issues met when designing, implementing, using and continuously updating performance measurement systems in manufacturing companies. The paper develops, from theory, a framework for analysing the implementation of a performance measurement system and uses this framework to interpret three longitudinal case studies. The paper concludes that specific processes are required to continuously align the performance measurement system with strategy. When these processes are combined with a well defined model of strategic success, the measurement system can enhance the strategic management process by challenging the assumptions and the strategy itself.
1,130 citations
TL;DR: Following a wide ranging review of the performance measurement literature, a framework identifying the desirable characteristics of a performance measurement system design process is developed and provided guidelines which were subsequently used to inform the development of a process‐based approach to performance measurementSystem design.
Abstract: Describes the development and testing of a structured methodology for the design of performance measurement systems. Frameworks, such as the balanced scorecard and the performance prism, have been proposed, but until recently little attention has been devoted to the question of how these frameworks can be populated, i.e. how managers can decide specifically which measures to adopt. Following a wide ranging review of the performance measurement literature, a framework identifying the desirable characteristics of a performance measurement system design process is developed. This framework provided guidelines which were subsequently used to inform the development of a process‐based approach to performance measurement system design. The process was enhanced and refined during application in three action research projects, involving major UK automotive and aerospace companies. The revised process was then formally documented and tested through six further industrial applications. Finally the process was written up in the form of a workbook and made publicly available.
919 citations
TL;DR: In this paper, the authors examined the role of partnerships between original equipment manufacturers (OEMs) and their suppliers in improving the environmental performance of manufacturing operations and found that strong partnerships with suppliers, supported by appropriate incentive systems, were a significant element of the successful application of innovative environmental technologies.
Abstract: Automobile assembly plants worldwide face increasing pressures in the environmental arena. How a plant responds to these issues has significant implications for the cost and quality of plant operations. This paper uses three case studies of US assembly plants to examine the role of partnerships between original equipment manufacturers (OEMs) and their suppliers in improving the environmental performance of manufacturing operations. We find that strong partnerships with suppliers, supported by appropriate incentive systems, were a significant element of the successful application of innovative environmental technologies. Supplier staff members were an important part of achieving environmental performance improvements while maintaining production quality and cost goals. The management factors influencing the extent and nature of supplier involvement are identified. The results of this work point to the importance of suppliers in addressing the manufacturing challenges of the future.
621 citations
TL;DR: In this paper, the authors argue that lean production can underpin competitive advantage if the firm is able to appropriate the productivity savings it creates, and that the ambiguity of lean production in practice means that the implementation process can create strategic resources to underpin sustainable competitive advantage.
Abstract: Today, “lean” may no longer be fashionable but its core principles (flow, value, pull, minimizing waste etc.) have become the paradigm for many manufacturing (and service) operations. Given this pre‐eminence, the paper seeks to establish what impact it has had on the overall competitive positions of adopter firms. Combining normative and critical theory (from lean production and resource‐based view of the firm literature) with empirical material drawn from three case studies, the paper argues that lean production can underpin competitive advantage if the firm is able to appropriate the productivity savings it creates. Similarly, the ambiguity of lean production in practice means that the implementation process can create strategic resources to underpin sustainable competitive advantage. Problematically, however, the paper also suggests that being “lean” can curtail the firm’s ability to achieve long‐term flexibility. It concludes with suggestions for further work.
562 citations
TL;DR: This research identifies differing emphases that may be required for managing within supply networks, according to the nature of the products for which they are created, using the type of product as a differentiator.
Abstract: The articulation of supply networks, as an extension of supply chains, seeks to accommodate and explain the commercial complexity associated with the creation and delivery of goods and services from the source of raw materials to their destination in end‐customer markets. In place of the simplistic, linear and unidirectional model sometimes presented for supply chains, the supply network concept describes lateral links, reverse loops, two‐way exchanges and so on, encompassing the upstream and downstream activity, with a focal firm as the point of reference. A review of classifications of supply networks reveals that none of the existing approaches appears adequate for managers facing the practical problems of creating and operating them on a day‐to‐day basis. This research identifies differing emphases that may be required for managing within supply networks, according to the nature of the products for which they are created. Taking an established categorisation of supply chains as its starting point, the research first develops the conceptual basis, using strategy literature, and then tests the resultant initial model in 16 case studies. Finally, a new categorisation for supply networks is presented, using the type of product as a differentiator.
495 citations
TL;DR: In this article, the authors present a methodology to assist manufacturing companies to achieve agile manufacturing by understanding and responding to changes, and taking advantage of changes through strategic utilisation of managerial and manufacturing methods and tools.
Abstract: As we approach the twenty‐first century, manufacturing success and survival are becoming more and more difficult to ensure. This fact is rooted in the emergence of a new business era that embraces “change” as one of its major characteristics. The emphasis is now on adaptability to changes in the business environment and on addressing market and customer needs proactively. The emerging paradigm is agile manufacturing. Understanding and responding to changes, and taking advantage of changes through strategic utilisation of managerial and manufacturing methods and tools, are some of the pivotal concepts of agile manufacturing. This paper discusses these concepts and presents a methodology to assist manufacturing companies to achieve agility. Industrial questionnaire surveys and case studies are carried out to support and validate the methodology. Results and conclusions derived from the surveys and case studies in support of the methodology are reported.
460 citations
TL;DR: This work develops a model for integrated and dynamic performance measurement systems and provides a critical review of existing frameworks, models and techniques against the model to identify that current knowledge and techniques are sufficiently mature to create dynamicperformance measurement systems.
Abstract: Begins by creating a vision for dynamic performance measurement systems and goes on to describe the background to the work. Develops a model for integrated and dynamic performance measurement systems. Provides a critical review of existing frameworks, models and techniques against the model. Identifies that current knowledge and techniques are sufficiently mature to create dynamic performance measurement systems. The use of the dynamic performance measurement system is illustrated through a case study. Concludes with a series of lessons highlighting further research and development needs.
443 citations
TL;DR: The ISO 14001 Environmental Management System (EMS) standard has been designed to help organizations in the creation of structured mechanisms for continuous improvement in environmental performance as discussed by the authors, however, adopting these elements may necessitate cultural changes, the core elements of which are embodied by TQM principles.
Abstract: The ISO 14001 environmental management system (EMS) standard has been designed to help organizations in the creation of structured mechanisms for continuous improvement in environmental performance. This paper evaluates how ISO 14001 EMS and EMS‐like standards aid organizations in operating continuous source reduction programs by exploring some critical elements for program success. The ISO 14001 standard helps organizations define important EMS elements for continuous source reduction. However, adopting these elements may necessitate cultural changes, the core elements of which are embodied by TQM principles. The cultural changes support complex operational activities aimed at source reduction. Three case study firms are used to evaluate these critical EMS elements. Each firm showed substantially idiosyncratic situations attributable to each organization’s size, history, corporate culture, and technology. Despite the differences, however, the cases highlighted one critical point: employee empowerment, their willingness to make suggestions for improvement, and management’s effort to create employee participation in decision making are critical elements in managing continuous source reduction programs. These initial empirical observations provide some insight into how this cultural change may occur.
381 citations
TL;DR: This paper will outline one such framework that was developed taking into account industry design requirements and results of the framework having been implemented will be illustrated through a short case study, with the framework’s potential and shortcomings being discussed.
Abstract: To be world class and be classified as a world class manufacturer, manufacturing organisations need to have a number of critical ingredients: one such ingredient is that of an appropriate performance measurement system. Measurement systems incorporating financial and non‐financial measures have been a topic of considerable interest to both business practitioners and academics for most of the 1990s. A voluminous amount of attention has focussed on manufacturing industry, especially regarding the selection and implementation of non‐financial performance measures. Throughout the 1990s, various novel frameworks have been devised to aid manufacturing organisations to select and implement measures. This paper will outline one such framework that was developed taking into account industry design requirements. Results of the framework having been implemented will be illustrated through a short case study, with the framework’s potential and shortcomings being discussed.
366 citations
TL;DR: In this article, the authors investigated the stated goals and outcomes of EI team projects and relationships among these, and found strong relationships between the operational goals and outcome of teams and the positive environmental impact outcome.
Abstract: This paper uses data from 349 employee involvement (EI) team projects to explore the relationships between process type, operational performance, employee involvement, and environmental performance. We investigate the stated goals and outcomes of EI team projects and relationships among these. For repetitive manufacturing processes in particular, we find strong relationships between the operational goals and outcomes of teams and the positive environmental impact outcome. To the extent that environmental performance results from operational systems, this paper suggests that the continuous improvement efforts of operations managers, including EI team projects, can be a key source of environmental improvements. Managers who understand this will take overt steps to leverage their operational improvement systems for environmental gains. From a theory development standpoint, questions are raised regarding the areas of potential synergy between operational and environmental improvement.
329 citations
TL;DR: A practical analysis of operational performance measurement at Airbags International Ltd (AIL), a supplier of airbag safety devices to the automotive industry, contrasts AIL’s performance with other applications of OEE found with the research literature.
Abstract: Presents a practical analysis of operational performance measurement at Airbags International Ltd (AIL), a supplier of airbag safety devices to the automotive industry. First, the primary measure of overall equipment effectiveness (OEE) is described. Its implementation and use within the operational environment of AIL is then described and analysed. Finally, presents the potential benefits of developing OEE as an operational measure and contrasts AIL’s performance with other applications of OEE found with the research literature.
TL;DR: In this article, the pervasiveness of the adoption of environmental management practices is assessed using data from a national survey, firm visits, and phone interviews, and the authors assess whether the adoption is related to leadership in environmental innovation and performance.
Abstract: This paper explores whether there are discernible differences in the environmental innovation and performance of US chemical firms that can be explained by differences in the management practices and characteristics of the firms. Using data from a national survey, firm visits, and phone interviews, this research assesses the pervasiveness of the adoption of environmental management practices. It also assesses whether the adoption of these practices is related to leadership in environmental innovation and performance. This paper shows high levels of adoption of several practices for improving environmental innovation and performance. Firms are using practices such as total quality management, certification of suppliers, R&D, and the involvement of employees in innovation and training to integrate environmental management with their production systems. In addition, firms with the highest adoption levels of environmental practices have substituted cleaner materials and changed their production processes for cleaner production, and they are leaders in reducing their generation of chemical waste.
TL;DR: In this paper, the authors focus on the impact of TQM on the business performance of the service sector of the economy and find that the key to the success of TQLM lies in its intangible and behavioral features such as top management support, employee empowerment and employee involvement.
Abstract: This paper focuses on gaining insight into the impact of TQM on the business performance of the service sector of the economy. The study yields clear evidence that TQM implementation improved business performance in the service sector of Singapore. Success of TQM implementations appears to be attributable more to the rigor of its implementation rather than the duration. The study finds that while accrued benefits can be attributed to some of the tools of TQM, such as, customer focus and quality improvement rewards, the key to the success of TQM lies in its intangible and behavioral features such as top management support, employee empowerment and employee involvement.
TL;DR: In this paper, the authors propose four different vendor selection systems (VSSs) depending on the time frame (short-term versus long-term) and on the content (logistic versus strategic) of the co-operative customer/supplier relationships.
Abstract: Literature on supply chain management has been recently stressing the need for co‐operation and integration between suppliers and customers, highlighting the critical role played by the supplier in contributing to the overall performance of the purchaser. Consequently supplier selection is one of the purchasing manager’s most critical tasks, as demonstrated by the number of articles that have dealt with vendor selection criteria and techniques in the light of the requirements of the new environment. The paper proposes four different vendor selection systems (VSSs) depending on the time frame (short‐term versus long‐term) and on the content (logistic versus strategic) of the co‐operative customer/supplier relationships. More precisely, the suggested VSSs consider, in an analytic hierarchy process framework, different sets of measures, deriving from a non‐conventional model of the supplier based on the dynamic system and on the resource‐based approach.
TL;DR: In this paper, the authors present a make-or-buy framework to address the problem of making decisions about whether to buy a specific individual part or a family of parts from a manufacturer.
Abstract: The make‐or‐buy question represents a fundamental dilemma faced by many companies. Companies have finite resources and cannot always afford to have all manufacturing technologies in‐house. This has resulted in an increasing awareness of the importance of make‐or‐buy decisions. This paper reports on the development of a make‐or‐buy framework to address the make‐or‐buy decision for either a specific individual part or family of parts. Firstly, a literature review of the principal make‐or‐buy approaches is discussed. Secondly, the development of a make‐or‐buy framework is described and the framework is explained and illustrated using case studies. Thirdly, the operationalisation of the framework is outlined. The paper concludes with a discussion of its contribution to both the academic understanding of the subject, and the improvement of industrial practice.
TL;DR: In this article, a case study was conducted at Valeo, a French company located in England that produces wiper systems for the automotive industry in the UK, and the objective of the project was to improve productivity in two cells of the company.
Abstract: Small and medium enterprises (SMEs) play an important role in modern economies because of their flexibility and ability to innovate. In nearly every country, SMEs play a significant role in providing employment opportunities and supporting large scale manufacturing firms. However, there are not many studies reported in the literature that deal with productivity problems in SMEs. Considering the importance of SMEs, the experiences of a small company engaged in continuous improvement and a related conceptual model are discussed here to highlight how productivity can be improved with limited resources. The case study presented in this paper was conducted at Valeo; a French company located in England that produces wiper systems for the automotive industry in the UK. The wiper systems include containers, pumps, jets and hoses. Valeo produces a wide variety of low volume parts for various customers in a job shop environment. The objective of the project was to improve productivity in two cells of the company, namely the Honda/Rover cell and the headlamp cleaning cell. Next, the aim was to identify potential areas for cost savings resulting from productivity gains. Finally, implementation issues associated with productivity improvement strategies in a small company are discussed.
TL;DR: An exploratory model of competence and performance is presented and tested in this paper, where competence in marketing, product innovation, manufacturing, and human resource development across a list of 42 items have been analyzed.
Abstract: An exploratory model of competence and performance is presented and tested in the study. Competence in marketing, product innovation, manufacturing, and human resource development across a list of 42 items have been analyzed. Marketing competence was ranked high by Chinese managers. Elements contributed to manufacturing competence regarding process reengineering have not been emphasized as much by Chinese managers. Human resource competence, on the other hand, has been found to be significantly correlated with performance. The results clearly show a trend moving from the state‐planned economy to the market economy.
Abstract: Reviews literature from manufacturing strategy, flexibility, agile manufacturing, and aspects of industrial marketing and highlights fragmented and inadequate treatment of fundamental issues relating to product customisation. Through synthesis of the literature and the analysis of four case studies – in the manufacture of fork‐lift trucks, electro‐mechanical devices, small telecommunications systems and stationery products respectively – presents a novel model of the customisation process. Identifies typologies of customisation problem‐solving situations and custom‐build option types. Demonstrates the importance of the relationship between the degree of design activity and volume of manufacture, and of the distinction between products that are custom‐built from options, and those that involve some custom‐designed elements. Proposes a range of potential roles for customised products to support management decision making in the selection of appropriate business activities.
TL;DR: In this paper, the authors explore potential distinctions of service businesses as they may influence management motivation for taking environmentally friendly actions, and observe some commonality of environmental motivations between service and manufacturing industries, as well as some environmental themes unique to services.
Abstract: The impact of business operations on the natural environment has been a public concern for decades and a research concern for years. To date, the focus of environmental impact research has been almost exclusively on manufacturing industries. Environmental research specific to service industries have been neglected, despite the fact that economies of developed nations are mostly made up of service businesses. This paper explores potential distinctions of service businesses as they may influence management motivation for taking environmentally friendly actions. Through a number of case studies, we observe some commonality of environmental motivations between service and manufacturing industries, as well as some environmental themes unique to services. These themes pertain to customer awareness of environmental initiatives of service firms by virtue of their involvement in the production process. Interestingly, customer involvement can have an adverse affect on environmental initiatives.
TL;DR: A survey of two Canadian industries as discussed by the authors revealed evidence that environmental technologies have been regarded as ancillary investments; as investment in manufacturing increased, so did the proportion of that investment directed toward environmental technologies.
Abstract: The popular business press, government regulators, environmentalists and the public are calling on operations managers to shift away from their traditional emphasis on pollution control toward pollution prevention when improving environmental performance. Yet, any managerial decision about the level and form of investment in these environmental technologies cannot be made in isolation, but instead must be implemented within the context of other manufacturing investments in process technologies and organizational systems. A survey of two Canadian industries – small machine tools and non‐fashion textiles – revealed evidence that environmental technologies have been regarded as ancillary investments; as investment in manufacturing increased, so did the proportion of that investment directed toward environmental technologies. Further, increased investment in advanced process technologies actually shifted investment away from pollution prevention. In contrast, increased investment in quality‐related organizational systems favored concurrent investment in recycling programs, along with pollution prevention and management systems. Thus, increased investment in quality management offered an important route to expand the implementation of pollution prevention.
TL;DR: In this article, the role played by environmental issues during the new product design process was examined through an exploratory research project based on case studies of ten companies, and the firms studied can be categorized into one of five major groups: innovators, early adopters, early majority, late majority, and laggards.
Abstract: This paper examines the role played by environmental issues during the new product design process. These issues are studied through an exploratory research project based on case studies of ten companies. The firms studied can be categorized into one of five major groups: innovators, early adopters, early majority, late majority and laggards. These groups strongly parallel the model of new product acceptance initially developed in the computer industry, as presented by Moore (1991). Of interest is the gap that exists between the early adopters and early majority users. This gap forms a chasm. Those factors that account for acceptance of environmentally responsible manufacturing in the innovators and early adopters are significantly different from those factors observed in the early majority, late majority, and laggards. This paper examines these and other differences, and the impact of these differences on the acceptance and use of environmental concerns within the new product design process.
TL;DR: In this paper, the authors examined the effects of information systems integration on business process improvement (BPI) and found that data integration and communication networks integration significantly affect the relationship between networks integration and process improvement effect and customer focus.
Abstract: Since the mid‐1980s, the subject of information systems (IS) integration and its role in business process improvement (BPI) has been of considerable interest to business managers and researchers. The present study examines the effects of IS integration on BPI. The moderating effects of industry type, information intensity of the industry, and time since the initiation of the existing program in the firm have also been analyzed. The data for the study were gathered through a survey of Fortune 500 US firms at divisional levels. The results of the study support the hypotheses that data integration and communication networks integration affect the dimensions of BPI. However, none of the moderators, except industry type, was found significantly affecting the relationships between networks integration and process improvement effect and customer focus.
TL;DR: In this article, the authors present a case study conducted in a small manufacturing company and discuss the various issues encountered by small businesses when embarking on TQM and their quality efforts.
Abstract: TQM is a philosophy mainly dominated by large companies. Small businesses are lagging behind larger ones when it comes to introducing and adopting new managerial philosophies and advanced technology. Many small companies have stopped at quality system certification, such as ISO 9000, in their quality journey rather than pursuing further continuous improvement efforts through TQM. Small businesses must understand the need to go beyond the quality system stage and work towards a total approach for quality. Only through this total approach will their quality effort be a success. Discusses the various issues confronting small businesses when embarking on TQM. First, reviews the subject of TQM and the quality initiatives undertaken by small businesses (which are treated as small‐ to medium‐sized enterprises (SMEs)) such as ISO 9000 and TQM. The small business characteristics are also examined. Second, presents a case study conducted in a small manufacturing company. Culminates with conclusions and discussions drawn from both the review and the case study with suggestions for future research directions.
TL;DR: An empirical advanced manufacturing technology (AMT) taxonomy with three groups was identified from cluster analysis as discussed by the authors, based on a survey of Swedish metalworking industries and 324 relevant responses were received (response rate of 38 percent).
Abstract: An empirical advanced manufacturing technology (AMT) taxonomy with three groups was identified from cluster analysis. The analysis was based on a survey of Swedish metal‐working industries and 324 relevant responses were received (response rate of 38 percent). The first group, “the traditionalists” is characterised by firms of relatively small size with low levels of investments in AMT. “The hard integrators” emphasise computerised transactions between sub‐units and processes to a larger extent than the investment in administrative, design and manufacturing technologies. “The high investors” group contains relatively large firms that have invested in most technologies and have computerised their transactions significantly more than both the other groups. Companies with heavy investments in AMT had developed the infrastructure (worker empowerment, improvement programmes and organisational design) and maintenance (prevention and integration) aspects to a greater extent than low investors. They also performed better.
TL;DR: The proposed procedure is illustrated to be a viable approach for solving a fab layout design problem through a real‐world case study and features both the simplicity of the design process and the objectivity of the multiple‐criteria evaluation process as opposed to existing solution methodologies.
Abstract: This paper proposes to use Muther’s systematic layout planning procedure as the infrastructure to solve a fab layout design problem. A multiple objective decision making tool, analytic hierarchy process, is then proposed to evaluate the design alternatives. The proposed procedure is illustrated to be a viable approach for solving a fab layout design problem through a real‐world case study. It features both the simplicity of the design process and the objectivity of the multiple‐criteria evaluation process as opposed to existing solution methodologies.
TL;DR: In this paper, a case study in which a pragmatic but structured approach is followed, a framework is developed and built into a spreadsheet, and the resulting tool has been tested in a real-life situation, indicating that considerable amounts of money can be saved.
Abstract: Service part inventories cannot be managed by standard inventory control methods, as conditions for applying the underlying models are not satisfied. Nevertheless, the basic questions of inventory control have to be answered: Which parts should be stocked? Where should they be stocked? How many of them should be stocked? Presents a case study in which a pragmatic but structured approach is followed – a framework is developed and built into a spreadsheet. The resulting tool has been tested in a real‐life situation, indicating that considerable amounts of money can be saved.
TL;DR: The ability of manufacturing companies to adapt to their changing environment is frequently a key to long-term success as discussed by the authors and as a consequence the strategic flexibility of manufacturing operations has become an increasingly important issue for organisations.
Abstract: The ability of manufacturing companies to adapt to their changing environment is frequently a key to long‐term success. As a consequence the strategic flexibility of manufacturing operations has become an increasingly important issue for organisations. There have been much theoretical work and some case studies in this domain. This paper reports part of a major study in the area. A key stage in this work has been an empirical study of UK manufacturing to investigate a broad range of issues surrounding manufacturing operations and strategic flexibility. In part this has been carried out through a questionnaire survey. This paper summarises some of the principal findings. These include respondents’ descriptions of their business strategies, the part played by manufacturing, the interfaces with customers, and the role of the information system and its contribution to manufacturing. This is complemented by a summary of 32 interviews/case histories which allow these issues to be explored further and which provide the input to the subsequent stages of the overall project.
TL;DR: In this paper, the authors examined the competitive dimensions of quality for first tier suppliers in the automotive industry and found that both product quality and service quality are related to overall firm performance, regardless of whether asset based, investment based, or market based measures are used.
Abstract: This paper examines the competitive dimensions of quality for first tier suppliers in the automotive industry. A theoretically relevant set of quality variables is identified from the literature. The results of a factor analysis show that quality is a two dimensional construct in the automotive supply industry. The core dimensions of quality are: product quality, which is primarily focused on design superiority and performance of the physical product; and service quality, which comprises both pre‐ and post‐sale service. The study reveals that both product quality and service quality are related to overall firm performance, regardless of whether asset based, investment based, or market based measures are used.
TL;DR: In this paper, the authors investigated the relationship between the functional areas of manufacturing and human resources by analysing the practices of human resource management associated with the competitive priorities of manufacturing strategy, e.g. quality, delivery performance, flexibility and cost.
Abstract: This article investigates the relationship between the functional areas of manufacturing and human resources by analysing the practices of human resource management associated with the competitive priorities of manufacturing strategy, e.g. quality, delivery performance, flexibility and cost. Within strategic business management, both the competitive priorities of manufacturing and the practices of human resource management need to be observed by the whole organisation. In this way, this study presents how human resource management practices are aligned to business strategies based on cost reduction, quality, delivery performance and product innovation. These practices may also be arranged in different ways in a particular competitive strategy.
TL;DR: This work aims at contributing to the understanding of how the effectiveness of performance feedback information can be improved by defining a set of distinct performance feedback dimensions based on a PMS literature review, and by validating it empirically on an international sample of 164 manufacturing organisations.
Abstract: A primary function of the Performance Measurement System is to provide employees with information on their past performance, allowing them to assess the outcomes of their actions, and therefore if they are meeting or not the objectives they are given. This work aims at contributing to the understanding of how the effectiveness of performance feedback information can be improved by defining a set of distinct performance feedback dimensions based on a PMS literature review, and by validating it empirically on an international sample of 164 manufacturing organisations. The proposed dimensions are: relevance as performance feedback orientation to the achievement of objectives; dynamic adjustment of performance feedback; relevance as usefulness of cost performance feedback; relevance as usefulness of non‐cost performance feedback; timeliness of shop‐floor performance feedback; personal performance feedback; and feedback on the overall process performances. The analysis shows that these dimensions are distinct, thus allowing to deal with them separately both in PMS design and audit. As far as the effectiveness of the performance feedback is concerned, it emerges that for several dimensions higher scores are associated to higher operating performances (cost, time and quality), but in one case this only holds for managers and in another one only for supervisors.