Measuring Up: An Analysis of Performance Measures in Manufacturing and the Development of an Improved Framework"

Yitagesu Yilma Goshu ¹ ( PhD candidate, Addis Ababa Science and Technology University, Addis Ababa, Ethiopia )

Submited date : 2023-08-26 Accepted date : 2025-03-09

Keywords: Performance measures, performance measurement, framework, manufacturing Industries, performance improvement, sustainable measurement,

Abstract :

The purpose of this study is to investigate the existing performance measurement practices of selected manufacturing industries and put forward an improved solution for better company performance measurement and improvement system. Both quantitative and qualitative research approaches have been used to investigate and solve problems related to the current measurement and improvement systems. The data was collected from 135 companies of large and medium sized manufacturing companies using questionnaire, backed by semi-structured interview and observation for validation purpose. The finding shows the existing performance measurement practice has serious problems in measures design, implementation, use and dynamically updating of the performance measurement system. Poor data quality for the formulation and update of strategies, poor alignment of measures, low information accuracy, inadequate measures coverage for relevant stakeholders and high measures sub-optimization were among the major characteristics of the existing PM practice. A methodological framework for Performance Measurement System (PMS) has been developed to address the identified problem. The framework bases on the principles of Stakeholder theory, network theory and corporate social responsibility, which provided the foundation needed to develop PMS that looks at the whole picture, keeps ever-changing conditions in focus, and supports sustainable growth for companies under dynamic conditions.