A Performance Measurement System for SCO Industrial Base Performance Converting Sales

University essay from Lunds universitet/Teknisk logistik

Abstract: From literature review a theoretical research model was developed describing the process for designing a performance measurement system fit for the company culture, strategic direction, and stakeholder perspective. Following the model, the definition of high performance for the department was investigated and success factors were formulated from interview results. These success factors were according to plan and/or agreement; information flow; and on-time delivery. From these success factors three priority areas could be identified, namely customer satisfaction; time dimension; and transparency. From these priority areas and with regards to how they were described important for the department, the quantitative metric on-time delivery ratio was suggested in a two levelled structure. This measure was designed to capture the delivery performance of Converting Sales and their suppliers and distributers. The hypothesis is that this metric can help improve delivery performance, hence, increase the effectiveness of the department. This was suggested as the initial design of the performance measurement system which should be further developed with evaluation, weighted scores, and additional performance measures.

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