Mult i- cr iter ia Per formance Measurement Model Development for Ethiopian Manufactur ing Enterpr ises
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Date
2007-06
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Addis Ababa University
Abstract
To be competent as a world-class manufacturer, manufacturing organizations
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. The main focus of this research thesis is to formulate a multi-criteria
performance measurement model that comprises critical both tangible &
intangible measures.
This research paper reviews worldwide researches that address the correlation
between applying appropriate performance measures, and their impacts on
strategic performance outcomes. The research has been conducted in a sample of
28 Ethiopian manufacturing enterprises. The vital financial results of these
surveyed companies are compared to the international industry benchmarks. The
extent of utilization of financial & non-financial measures in strategic planning
and organizational performance evaluation is also studied.
The results from this research study assure that one of the major constraints for
performance degradation in selected companies is the lack of proper performance
measurement systems and strategies. The negative impact of traditional
performance measures and operation strategies on improvement of business
results is clearly determined. Depending upon the research findings, a MCPM
model with its implementation steps is recommended as a solution using the
need assessments from participant enterprises.
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Mechanical Engineering