Search results

This paper aims to overcome the inability of both comparing loss costs and accounting for production resource losses of Overall Equipment Effectiveness (OEE)-related approaches.

The authors conducted a literature review about the studies focusing on approaches combining OEE with monetary units and/or resource issues. The authors developed an approach based on Overall Equipment Cost Loss (OECL), introducing a component for the production resource consumption of a machine. A real case study about a smart multicenter three-spindle machine is used to test the applicability of the approach.

The paper proposes Resource Overall Equipment Cost Loss (ROECL), i.e. a new KPI expressed in monetary units that represents the total cost of losses (including production resource ones) caused by inefficiencies and deviations of the machine or equipment from its optimal operating status occurring over a specific time period. ROECL enables to quantify the variation of the product cost occurring when a machine or equipment changes its health status and to determine the actual product cost for a given production order. In the analysed case study, the most critical production orders showed an actual production cost about 60% higher than the minimal cost possible under the most efficient operating conditions.

The proposed approach may support both production and cost accounting managers during the identification of areas requiring attention and representing opportunities for improvement in terms of availability, performance, quality, and resource losses.

The purpose of this paper is to develop a framework that small and medium size enterprises (SMEs) can use to assess their performance measurement system (PMS) in order to identify the main weaknesses and take corrective measures.

Starting from a review of the recommendations provided in literature regarding performance measurement in companies, a list of general characteristics of a “good” PMS is defined. The identified PMS general features are then tailored to SME needs through an analysis of the characteristics of SMEs and a survey of their performance measurement current practice. Finally all the requirements are included in a framework designed to support SMEs in critically reviewing their PMS and enabling its effective use.

The main characteristics of SMEs are reviewed and classified; the general characteristics of a “good” PMS are collected from the literature and then adapted to the SME context, thus obtaining a list of PMS requirements for SMEs; moreover a tool for PMS self‐assessment is developed.

Research is still at an early stage and applications of the tool in real settings will offer the possibility to refine and validate it.

The tool proposed codifies best practices and makes them accessible by SMEs in a simple way, thus supporting companies in the process of continuous improvement of their PMS.

The field of performance measurement in SMEs is an emergent area of study. The paper highlights the necessity of PMS assessment instruments suitable for SMEs and defines a new tool starting from the analysis of SME needs and characteristics.

This paper aims to investigate the gap between theory and practice in performance management in small and medium‐sized enterprises (SMEs) and analyse it in the light of specific SME characteristics and needs, to identify how SMEs can develop their managerial practice for effective performance management.

The design of the study is based on literature review and multiple case studies. Combining both approaches and investigating a spectrum of 37 European SMEs through 232 semi‐structured and face‐to‐face interviews with managers helped the authors to provide theoretical and empirical evidence to offer a more effective performance management process for SMEs.

The paper found that SMEs engage with a four‐stage performance management process, although there are some gaps between their practice and the complete process as recommended in literature. SMEs seem to be more focussed on internal and short‐term planning, whereas they pay less attention to long‐term planning. The main challenge for making performance management practice more effective lies in an appropriate, balanced use of strategic and operational practices and relevant measures. Therefore, managerial activities such as vision, mission and values development, internal and external communication, change management and horizon scanning represent recommended areas for improvement.

The paper suggests a number of ways to improve the SME managerial practice to achieve a more balanced view of the whole performance process, which includes the mechanisms for the development and implementation of good practice in performance management.