PERFORMANCE MEASUREMENT OF WORK TEAMS FOR COMPETITIVE MANUFACTURE
A. J. R. Smith
Department of Mechanical and Manufacturing Engineering, The University of Melbourne
Formerly, graduate student, Melbourne Business School, The University of Melbourne
Some companies implementing self-directed work teams and flatter, leaner company structures have demonstrated improved competitiveness; however, many have failed to achieve the expected levels of improvement, or have struggled to instil ongoing commitment to continuous improvement. Failure to maximize improvement from the newer programmes can be due to the continuing use of traditional accounting and reporting systems. These systems produce performance indicators that encourage managers to persist in their previous ways.
From case studies, it has become clear that the success of a measurement system is dependent on its relevance to company strategy and the needs of customers. However, the strategy must first exist in a form that can be easily communicated and understood by all employees. A check list, which combines desirable attributes listed in the literature and findings from the case studies, may be a useful diagnostic and developmental tool for performance measurement systems. Implementation may be assisted by a model based on PDCA cycles.