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Designing the lean enterprise performance measurement system

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dc.contributor.advisor Deborah Nightingale. en_US Mahidhar, Vikram en_US
dc.contributor.other Massachusetts Institute of Technology. Engineering Systems Division. en_US 2006-07-31T15:28:15Z 2006-07-31T15:28:15Z 2005 en_US 2005 en_US
dc.description Thesis (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division, 2005. en_US
dc.description Includes bibliographical references (p. 147-151). en_US
dc.description.abstract The research contained in this thesis explores design attributes of the enterprise performance measurement system required for the transformation to the lean enterprise and its management. Arguments are made from the literature that successful deployment of the lean practices, across three different stages of the evolution of lean thinking, requires a supporting performance measurement system. The increase in scope of lean practices at each stage of the evolution increases the complexity in achieving synchronization across the enterprise subsystems. The research presents various attributes of the performance measurement system required at each stage and further derives the three key attributes for the design of the lean enterprise performance measurement system. These three attributes are: enterprise level stakeholder value measures, the causal relationships across performance measures at each level, and Uniform and consistent set of performance measures. A detailed case study of an aerospace and defense business of a multi-industry corporation which has embarked on a journey towards creating a lean enterprise is presented. en_US
dc.description.abstract (cont.) It highlights several challenges in the transformation from the perspective of performance measurement. The key challenges identified are: First, disconnect between the performance measurement for the lean practices and regular business practices hinder the adoption of lean practices. This disconnect exists due to the existence of both legacy performance measures and the new measures. Second, lack of understanding of the cause-effect relationship between performance measures across different enterprise levels poses difficulty evaluating the impact of lean related efforts. Third, use of non-uniform performance measures across various enterprise subsystems leads to non-lean behavior. The theory underlying performance measurement is reviewed including the widely-accepted performance measurement frameworks suggested for the design of enterprise performance measurement system. Analysis of these frameworks reveals that none of the existing frameworks completely capture the desired attributes for the lean enterprise performance measurement system. en_US
dc.description.abstract (cont.) To design the lean enterprise performance measurement system, this research suggests a conceptual design that explicates the use of various tools and techniques to address the critical attributes. To identify stakeholder value measures this design demonstrates the use of stakeholder value analysis. Use of system dynamics modeling and structural equation modeling is suggested to establish, validate and evolve the cause-effect relationships between performance measures. And, to maintain the uniform set of measures the creation of measures dictionary is explained. Further, research is needed to empirically validate the model as a means for successful transformation and management of the lean enterprise. en_US
dc.description.statementofresponsibility by Vikram Mahidhar. en_US
dc.format.extent 151 p. en_US
dc.format.extent 7621466 bytes
dc.format.extent 7627845 bytes
dc.format.mimetype application/pdf
dc.format.mimetype application/pdf
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.subject Engineering Systems Division. en_US
dc.title Designing the lean enterprise performance measurement system en_US
dc.type Thesis en_US S.M. en_US
dc.contributor.department Massachusetts Institute of Technology. Engineering Systems Division. en_US
dc.identifier.oclc 65169610 en_US

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