An integrated model for performance management of manufacturing units

The objective of this paper is to develop an integrated model for performance management (PM) of manufacturing industries.

The proposed integrated model consists of performance measurement by the extended Brown Gibson model by considering the objective and the service quality factors. The quality factor measure has been evaluated by using the analytic hierarchy process. On the non‐compliance of the performance measures with the satisfactory levels, quality function deployment is used to redesign the existing manufacturing process.

This study provides a way to identify the current performance of an organization and a methodology for further improvement. An important contribution of this model is that it combines both the qualitative and quantitative dimensions of manufacturing performance measurement. Both the objective and manufacturing quality factors have been converted into consistent dimensionless indices to measure system performance.

This study has demonstrated the applicability of the model to support a manufacturing unit. It has shown how performance measures have been identified and how they can be used to calculate the two different manufacturing units using time, cost and service quality dimensions. Improving performance is a never‐ending process and organizations should strive to achieve it to attain the optimal level of cost and profit, as well as increase customer satisfaction and goodwill, and gain potential future business. Hence, the process of measuring and redesigning manufacturing performance measures needs to be monitored and the implementation plans reviewed often, which is successfully done by this integrated model.

We contend that the integrated model for PM, illustrated with a practical case in this paper makes a contribution to the never‐ending process of performance enhancement for both theory and application, and assists in expanding the boundaries of theory and practicality in this area, thus highlighting the novelty of our approach.