Strategy Management through Quantitative Modelling of Performance Measurement Systems

TLDR: How tools and techniques developed can be used to evaluate the performance of alternative strategic choices through a quantitative approach to modelling of performance measurement systems is demonstrated.

About: This article is published in International Journal of Production Economics.The article was published on 2001-01-07 and is currently open access. It has received 166 citations till now. The article focuses on the topics: Performance measurement & Resource allocation.

Figures

Figure 3. Evaluation manufacturing strategy performance

Figure 1. The framework of the QMPMS approach.

Table 2. Sensitivity analysis of manufacturing strategy performance

Table 1. Competitive characteristics of two alternative manufacturing strategies

Figure 2. Hierarchical structure of manufacturing strategy performance evaluation

Frequently asked questions

Q1. What have the authors contributed in "Strategy management through quantitative modelling of performance measurement systems" ?

This paper is based on previous works on performance measurement and on quantification of relationships between factors which affect performance. The paper provides a brief background to the research problem and preceding works. The tools and techniques used are briefly introduced. 

Q2. What is the main purpose of QMPMS?

The QMPMS approach also facilitates the production of performance reports, which integrate several multidimensional measures into a single performance index. 

Q3. What is the hypothesis of the work presented in this paper?

It is the hypothesis of the work presented in this paper that the QMPMS approach could be an effective tool for evaluating the effectiveness and sensitivity of alternative manufacturing strategies. 

Q4. What can be done to evaluate the performance of different strategies?

The sensitivity analysis can also be carried out on changes of the impacts of performance criteria on performance under different scenarios. 

Q5. how can a performance measurement system be changed?

The sensitivity analysis available through the QMPMS approach can be used to identify when to review and change the structure, content and priorities within a performance measurement system. 

Q6. How does the paper demonstrate the theoretical feasibility of using the QMPMS approach?

the paper demonstrated the theoretical feasibility of using the QMPMS approach and particularly the use of the Analytical Hierarchy Process (in the form of ExpertChoice Software) in evaluation of the suitability and sensitivity of several strategic choices through quantification of the relationships between performance measures and factors affecting performance. 

Q7. What is the reason why a performance measure may move to other classes?

A performance measure which was classified as high priority may move to other classes because of changes in the internal or external environments of the business. 

Q8. What are the three possible levels of demand?

There are three possibilities of level of demand: low (pessimistic scenario), average (normal scenario) and high (optimistic scenario). 

Q9. What was the purpose of the research adopted under the heading QMPMS?

The objective of the research adopted under the heading of QMPMS was to identify tools and techniques that would facilitate: • identification of factors affecting performance • identification of the relationship between factors affecting performance • quantification of these relationships on one another, and on the overall performance of thebusiness • “what if” analysis on business performance and strategy selection 

Q10. What is the purpose of the research?

continuing research is also carried out at the Centre for Strategic Manufacturing (CSM), University of Strathclyde to develop a reference model for a robust and integrated performance measurement system.