Mult i- cr iter ia Per formance Measurement Model Development for Ethiopian Manufactur ing Enterpr ises

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Addis Ababa University


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.



Mechanical Engineering