Performance Management
Performance Management A business process benchmarking approach Edited by Asbjorn Rolstadäs Professor of Production and Quality Engineering, University of Trondheim, The Norwegian Institute of Technology, Trondheim, Norway. m SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.
First edition 1995 1995 Björn Andersen,, Reinholdt Bredrup, Ann-Charlott Pedersen,, Asbjorn Rolstadäs, Tim Torvatn Originally published by Chapman & Hall in 1995 ISBN 978-94-010-4531-5 ISBN 978-94-011-1212-3 (ebook) DOI 10.1007/978-94-011-1212-3 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the UK Copyright Designs and Patents Act, 1988, this publication may not be reproduced, stored, or transmitted, in any form or by any means, without the prior permission in writing of the publishers, or in the case of reprographic reproduction only in accordance with the terms of the licences issued by the Copyright Licensing Agency in the UK, or in accordance with the terms of licences issued by the appropriate Reproduction Rights Organization outside the UK. Enquiries concerning reproduction outside the terms stated here should be sent to the publishers at the London address printed on this page. The publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability for any errors or omissions that may be made. A catalogue record for this book is available from the British Library @ Printed on permanent acid-free text paper, manufactured in accordance with ANSI/NISO Z39.48-1992 and ANSI/NISO Z39.48-1984 (Permanence of Paper).
CONTENTS Contents Contributors Preface v vii ix PART ONE Productivity and Competitiveness - an Introduction to Performance 1 1. The Productivity Term 3 BjrJrn Andersen 2. Productivity Studies 17 and Reinholdt Bredrup 3. Competitiveness and Competitive Advantage 43 4. Background for Performance Management 61 PART TWO Performance Planning 89 S. The Traditional Planning Hierarchy 91 6. Performance Planning to Ensure Business Achievements 103 and Reinholdt Bredrup PART THREE Performance Review 135 7. Modeling in Manufacturing Enterprises 137 8. Performance Measurement 169 9. Performance Evaluation 191
vi Contents PART FOUR Performance Improvement 199 10. Performance Improvement Strategies 201 11. Bencbrnnarking 211 Bjf9rn Andersen 12. Aspects and Approaches to Quality 243 13. Quality and Productivity Improvement Techniques 265 Bjf9rn Andersen PART FIVE Performance Influencing Factors 289 14. Management Concepts 291 Bjf9rn Andersen,, Reinholdt Bredrup and 15. Production Management 307 Reinholdt Bredrup 16. Project Management 347 Asbjf9rn Rolstadas 17. Purchasing 365 Ann-Charlott Pedersen and Tim Torvatn References 385 Index 395
CONTRIBUTORS Bjf21m Andersen Reinholdt Bredrup Ann-Charlott Pedersen Asbjf21m Rolstadas Tim Torvatn All the contributors are affiliated to: Norwegian Institute of Technology University of Trondheim Norway
PREFACE This book serves as a textbook for an introductory course on performance management. It gives an overview over various aspects of managing performance of the modem enterprise by focusing on performance evaluation and measurement and performance improvement techniques. Most of the material is based on a thorough literature search and an extensive reference list has been included. The book has been sponsored by the Norwegian productivity research program TOPP and by the COMETT program of the European Community Commission. It has been applied as the text for a continuing education course both within TOPP and the COMETT project APECE. It will also serve as part of a course material for a master's degree in technology management. The book is aimed at an audience of business and technology oriented personnel at middle and higher management level in manufacturing industry. At the same time it is suitable as a textbook for business and engineering schools and colleges. The book is organized in five parts discussing productivity and performance, performance planning, performance review, performance improvement and performance influencing factors. The authors have worked closely together to obtain a well coordinated text without overlap. They have provided a draft. This draft has been circulated for comments amongst the authors and amongst external experts. Based on their input the manuscript has been revised. Eivald RfI}ren and Einar Printz Moe, chairman of the board and program manager for the TOPP research program respectively, have also provided valuable input to the book. I take this opportunity to thank each of the authors who have devoted much time and effort to accomplish this text. We all hope that the overview this book provides will tum out to be useful both to industry and academia. Professor Asbjfl}rn RolstadAs, Editor Trondheim, January 15,1994