Technical Note: Performance measurement in industrial organizations, case study: Zarbal Complex

Subject Areas : Mathematical Optimization

Mohammad Jafar  Tarokh ¹ (Assistant Professor, Dep. of Industrial Engineering, IT Group, K. N. Toosi University of Technology, Tehran, Iran)
Eslam  Nazemi ² (Assistant Professor, Dep. of Industrial Engineering, Science and Research Campus, Islamic Azad University, Iran)

Received: 2015-08-23 Accepted : 2015-08-23 Published : 2006-09-01

Keywords: Priority scored performance measurement, Performance Measurement, Performance measurement models, ERP measurement, Industrial organization performance measurement,

Abstract :

Industrial organizations are complex systems` where the interactions among the various functions such as Sales, Distribution, Manufacturing, Materials, Finance, Human Resources and Maintenance have to be man-aged towards a common purpose of delivering the customers satisfaction. However, since most of these or-ganizations have a `Functional Structure`, each function or department works towards their own goals and ob-jectives, rather than the organizational goals. This is further aggravated because information flow is restricted by functions, and even when other functions want to take a holistic view, they do not have the information to do so. These are the issues addressed by Enterprise Resource Planning solutions providing a common, con-sistent system to capture data organization wide, with minimum redundancy. ERP integrates the resources such as information across functions, and provides a set of tools for planning and monitoring the various functions and processes and ensuring progress towards a common purpose in direction of goals and strate-gies. In this paper, we introduce a model for performance measurement of an organization, which they are working in competitive, monopoly or attractive business environment, and have total system or use ERP so-lution. We developed a Performance Measurement system that based on organization`s strategic and goals.In the following sections, we describe a brief survey of performance models. Then, we focused on per-formance measurement process, developing performance indicators and metrics. Our approach is to develop a process and a model for performance measurement by assigning priorities to all goals with respect to or-ganization strategies in specific business condition. The observation of using this model shows that it works very close to real world behaviors and can help senior managers for intelligent decision-making.