Performance Measures: Gaps, False Alarms, and the “Usual Suspects”

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Abstract
Using a two‐round Delphi process among 92 manufacturing managers from around the world, assesses the appropriateness of a variety of performance measures. The Delphi process used a survey technique that was pioneered by Dixon, Nanni, and Vollmann to highlight gaps (high perceived importance to the company but low weight in the performance measurement system) and false alarms (low perceived importance to the company but high weight in the performance measurement system). Direct cost reduction, machine efficiency, and labour efficiency are almost universally seen as false alarms. On the other hand, new product introduction, customer satisfaction, and employee involvement are frequently revealed to be gaps, although with less consistency. Cross‐industry comparisons are a distinctive feature of this research.

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