Performance Management A business process benchmarking approach

This book serves as a textbook for an introductory course on performance management. It gives an overview over various aspects of managing performance of the modem enterprise by focusing on performance evaluation and measurement and performance improvemen

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Performance

Management

A business process benchmarking approach

Edited by

Asbjorn Rolstadäs Professor of Production and Quality Engineering, University of Trondheim, The Norwegian Institute of Technology, Trondheim, Norway.

m

SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.

First edition 1995 © 1995 Björn Andersen, Harald Bredrup, Reinholdt Bredrup, Ann-Charlott Pedersen, Karianne Prytz, Asbjorn Rolstadäs, Tim Torvatn Originally p u b l i s h e d by C h a p m a n & Hall in 1 9 9 5 ISBN 978-94-010-4531-5 I S B N 9 7 8 - 9 4 - 0 1 1 - 1 2 1 2 - 3 (eBook) DOI 1 0 . 1 0 0 7 / 9 7 8 - 9 4 - 0 1 1 - 1 2 1 2 - 3 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the UK Copyright Designs and Patents Act, 1988, this publication may not be reproduced, stored, or transmitted, in any form or by any means, without the prior permission in writing of the publishers, or in the case of reprographic reproduction only in accordance with the terms of the licences issued by the Copyright Licensing Agency in the UK, or in accordance with the terms of licences issued by the appropriate Reproduction Rights Organization outside the UK. Enquiries concerning reproduction outside the terms stated here should be sent to the publishers at the London address printed on this page. The publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability for any errors or omissions that may be made. A catalogue record for this book is available from the British Library

@ Printed on permanent acid-free text paper, manufactured in accordance with ANSI/NISO Z39.48-1992 and ANSI/NISO Z39.481984 (Permanence of Paper).

CONTENTS Contents

v

Contributors

vii

Preface

ix

PART ONE Productivity and Competitiveness - an Introduction to Performance 1 1. The Productivity Term

3

BjrJrn Andersen

2. Productivity Studies

17

Harald Bredrup and Reinholdt Bredrup

3. Competitiveness and Competitive Advantage

43

Harald Bredrup

4. Background for Performance Management

61

Harald Bredrup

PART TWO Performance Planning

89

S. The Traditional Planning Hierarchy

91

Harald Bredrup

6. Performance Planning to Ensure Business Achievements

103

Harald Bredrup and Reinholdt Bredrup

PART THREE Performance Review

135

7. Modeling in Manufacturing Enterprises

137

Karianne Prytz

8. Performance Measurement

169

Harald Bredrup

9. Performance Evaluation Harald Bredrup

191

vi Contents PART FOUR Performance Improvement

199

10. Performance Improvement Strategies Harald Bredrup

201

11. Bencbrnnarking

211

Bjf9rn Andersen 12. Aspects and Approaches to Quality Karianne Prytz

243

13. Quality and Productivity Improvement Techniques Bjf9rn Andersen

265

PART FIVE Performance Influencing Factors

289

14. Management Concepts Bjf9rn Andersen, Harald Bredrup, Reinholdt Bredrup and Karianne Prytz

291

15. Production Management Reinholdt Bredrup

307

16. Project Management Asbjf9rn Rolst