Performance Measurement in a Process Oriented Organization – a study of IKEA Supplying Process, and its core process Plan & Secure Supply

University essay from Lunds universitet/Produktionsekonomi

Abstract: Purpose: The purpose is to map current measures in the main process Supplying and to select those that can be used to support the core process Plan & Secure Supply. Further, recommendations of new suitable measures for Plan & Secure Supply shall be given. Method: This is a qualitative study, mainly based on answers from semi-structured interviews with employees at IKEA. 51 interviews, within all organizational units connected to Supplying, were held to ensure a full view of the used measures. The secondary data that the frame of reference is based on primarily consists of literature about process orientation and IV measurement systems. Conclusions: When mapping the measures within Supplying, 226 were found. There are significant differences between the measurement structures of different organizational units, both concerning the presentation and the number of measures used. Of the 226 Supplying measures, eight can be used to support Plan & Secure Supply, e.g. Forecast Accuracy, DD Share and stock measures. Further, new measures such as Cost of Poor Planning and Order proposal Accuracy, are recommended to be developed.

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