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Performance management One step ahead: Verbeteringen bij de assemblage van autocarrosseriedelen

Zomerman, Jurjen F. (2010) Performance management One step ahead: Verbeteringen bij de assemblage van autocarrosseriedelen.

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Abstract:This study has taken place at the Dutch company The company is specialised in producing body panels for the automobile industry. The current assembly performance management has been found inadequate to determine how well the department performs. Performance management is defined as the process of steering the organisation to desired objectives. The production flow at the assembly department is complex. It is a jobshop production to assemble a broad variety of different products with small batch sizes at approximately sixty-five different workstations. The main problem was identified by analysing and determining the current performance management system of the assembly department. The lacking of a performance indicator for the key success factor ‘efficient productivity’ is the main reason for the current assembly performance management being found inadequate. The total capacity of the assemble department is restricted by the available labour hours. Therefore the available working hours must be used optimally to maximize the total department capacity to produce efficiently. Whereas the labour productivity is a dominating factor in the assembly, a labour productivity indicator is missing. As a consequence, it is unclear at which level the workforce performs, and therefore it can not be managed adequately. Labour productivity can be measured by dividing the standard hours equivalent of the actual output by the actual hours worked. By making the performances visible on team level, employees become motivated to perform productively and to achieve the norm. The labour productivity indicator is designed, specified and ready for implementation. The founded research results have convinced the assembly manager of the importance of the labour productivity as a performance indicator for measuring the department efficiency, and the indicator shall be implemented. A roadmap has been designed for the implementation of the labour productivity performance indicator. Experimentation and the further design of the labour productivity shall take place in a pilot group. Targets will be defined after a department broad introduction and the indicator shall be placed on the department performance dashboard. The performance indicator ‘labour productivity’ makes it possible for the Cost Engineering department to refine the calculation model and to check the feasibility of the production norm standards. The obtained insight makes it possible to improve the accuracy of the cost calculations. Conclusion The lacking of a performance indicator for the key success factor ‘efficient productivity’ is the main reason for the current assembly performance management being found inadequate. Whereas the labour productivity is a dominating factor in the assembly, a labour productivity indicator is missing. Labour productivity must be measured by dividing the standard hours equivalent of the actual output by the actual hours worked. The labour productivity indicator is designed, specified and ready for implementation. The founded research results have convinced the assembly manager of the importance of the labour productivity as a performance indicator for measuring the department efficiency, and the indicator will be implemented. 8 Recommendations Most of the targets for the performance indicators are not clearly defined. This is a problem, because without clear targets objectives are not communicated specifically enough, and it is not measurable to what extend the objectives are reached or what the deviation is. The recommendation is to define clear targets, check the deviation between the actual performance and the targets, and act on the outcomes. It is likely to suspect that other departments have not got clear targets either. Therefore it is also recommended to define clear targets for their performance indicators. The different performance indicators used by the assembly department, are published in a broad variety of evaluation reports. At the moment it is not possible to get a quick deep insight in the overall performance of the department because a comprehensive performance report is missing. The department already notified this problem before this study started. They already started with a project to design a comprehensive performance report in a ‘dashboard’ format. The dashboard is a reporting tool that presents key performance indicators in charts, presented on a single sheet. The recommendation is to give more priority to the project to finalize the design of the comprehensive performance dashboard and get it in use. Subsequently this project can be rolled out further in the organisation for other departments.
Item Type:Essay (Master)
Clients:
Voestalpine Polynorm B.V.
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Industrial Engineering and Management MSc (60029)
Link to this item:http://purl.utwente.nl/essays/60733
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