A Method for Key Performance Indicator Assessment in Manufacturing Organizations

Area of Science:

• Organizational Management
• Performance Measurement
• Business Analytics

Background:

• Key Performance Indicators (KPIs) are crucial for monitoring organizational strategic health and goal achievement.
• Current KPI assessment is often informal and lacks scientific rigor, relying on external consultants.
• A gap exists in structured, scientifically-based methods for KPI evaluation that also consider practical usability.

Purpose of the Study:

• To develop and deploy a novel method for KPI assessment grounded in scholarly literature.
• To create a scientifically-based approach that balances academic rigor with practitioner needs for ease of use.
• To enhance organizational performance monitoring through systematic KPI evaluation.

Main Methods:

• Development of a KPI assessment method integrating scholarly literature and practitioner concerns.
• Inclusion of organizational stakeholder involvement at multiple levels.
• Introduction of a mathematical foundation based on value-focused thinking for KPI evaluation.
• Demonstration of the method through a case study.

Main Results:

• A structured method for KPI assessment was developed and deployed.
• The method incorporates stakeholder perspectives and a mathematical basis for evaluation.
• The case study demonstrated the practical application of the proposed KPI assessment approach.
• The method facilitates the evaluation of organizational performance against KPI thresholds.

Conclusions:

• The proposed method offers a scientifically-backed, yet practical, approach to KPI assessment.
• Stakeholder involvement and a value-focused mathematical foundation improve KPI evaluation.
• This research provides a foundation for more rigorous and effective organizational performance management.