Manufacturing Performance Evaluation Tool for Malaysian Automotive Small and Medium-Sized Enterprises

By Amrina, Elita; Yusof, Sha'ri Mohd | International Journal of Business and Management Science, December 2010 | Go to article overview

Manufacturing Performance Evaluation Tool for Malaysian Automotive Small and Medium-Sized Enterprises


Amrina, Elita, Yusof, Sha'ri Mohd, International Journal of Business and Management Science


INTRODUCTION

The globalization of markets, growing inter-diffusion of economies, and increased inter-dependence of economic agents are reshaping national and international competitive environment and economic performance (Ghobadian and Gallear, 1996). To be competitive, all companies have to re-examine and modify their competitive strategies. Small and medium sized enterprises (SMEs) can not be separated from these pressures. They have to pay more attention to the changes in manufacturing performance system including the measures used. They need to have a set of manufacturing performance measure to gauge their level of achievement.

Hudson, Smart and Bourne (2001) suggested that there are numerous barriers to strategic performance measurement system implementation in SMEs. The failure of the implementation was attributed primarily to the development process being: too resource intensive and too strategically oriented. This is due to limited resources and a dynamic style strategy of SMEs. These issues are acutely problematic because developing a strategic performance measurement system is necessarily long term and it explicitly requires the resulting measures to be strategically focused. These differences of SME's characteristics indicate a need to asses their performance measurement differently.

The manufacturing performance measurement literatures have shown the financial measures such as profits and return on investment were criticized by many authors because of their many shortcomings. They are short-term rather than long-term focus, measuring the past rather than future (McNair, Lynch and Cross, 1990). Financial measures tend to be obsolete and easily manipulated by managers (Jusoh and Parnell, 2008). To deal with those criticisms then non financial measures such as quality, delivery, time, and flexibility have been suggested as better performance measures. Non-financial measures are timelier than financial ones, very measurable and precise, meaningful to the workforce so aiding continual improvement, consistent with company goals and strategies, they change and vary over time as market needs change, and so tend to be flexible (Medori and Steeple, 2000). This study focused only on the non-financial manufacturing performance measures. In performance measurement, numerous non-financial measures can be used by organizations. The problem is which of the measures from the ones that are available in an organization should be used (Medori and Steeple, 2000). It usually depends on the characteristics of the organization and the nature of its business industry and environment.

In the performance measurement literature, there are also different models or approaches on analytical techniques and quantification of performance. Oztaysi and Ucal (2009) summarized the most frequently used analytical models in the literature. They are Cognitive Maps, Regression Analysis, Artificial Neural Networks (ANNs), Analytical Hierarchy Process (AHP), Multi Attribute Utility Theory (MAUT), and Simple Multi Attribute Rating Technique (SMART) and Data Envelopment Analysis (DEA). These techniques usually used to determine the importance of indicators or define tradeoffs between indicators and definition of relationship between the indicators (Abu-Suleiman, 2006). Of those techniques, the AHP is the most popular tool for multiple criteria decision-making. AHP has been extensively used for selection process such as comparing the overall performance of manufacturing departments (Rangone, 1996), determining measures for business performance (Cheng and Li, 2001), manufacturing supply chain (Wang, Huang and Dismukes, 2005), benchmarking logistics performance (Chan, Chan, Lau and Ip, 2006), and vendor evaluation and selection (Haq and Kannan, 2006). As cited in Muralidharan, Anantharaman and Desmukh (2001), in addition to simplicity, ease of use, and flexibility, its ability to handle complex and ill-structured problems has led to AHP's power and popularity as a decision-making tool (Vargas, 1990; Wedley, 1990). …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Manufacturing Performance Evaluation Tool for Malaysian Automotive Small and Medium-Sized Enterprises
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.