centre for strategic manufacturing dmem sai s. nudurupati wepms: management implications web...

Sai S. Nudurupati WePMS: Management Implications

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Web enabled Performance Measurement System (WePMS): Management Implications

by

Sai S. Nudurupati3rd Year

ORS Funded Research

Dated 24 Jan 2003

University of Strathclyde, Glasgow.


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Agenda

1. Introduction

2. Background

3. Methodology

4. Implementation (three cases)

5. Cross Case Analysis

6. Conclusion


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Introduction

• There are lot of frameworks and models on Performance Measurement Systems but most of them does not have IT platform (Bititci et al 2000 & Hudson et al 1999)

• Many Performance Measurement Systems fail because of lack of IT platforms (Bourne et al 2000 & Bititci et al 2000)

• A revolution in the market took place, offering commercial IT platforms to support Performance Measurement (In last decade)

• Many companies not in a position to buy commercial IT platforms available for Performance Measurement (although biased, based on Scottish Companies)

– Heavy Investment (for the sake of performance measurement)– IT Productivity Paradox

1. Introduction


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Objective

“To design and implement Web enabled Performance Measurement System (WePMS) and assess its business

and management implications”

1. Introduction


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Anecdotal Evidence: Pilot Case

Architecture of the web-enabled performance measurement system (WePMS) at the Pilot Company

MS Excel

MRP System

ODBC Connectivity

SQC ChartsQuality Analyst

MS Access

Publishing on Web

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2. Background


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Results of Pilot Case Study

Pros• Complete transparency of information

• Dissemination of knowledge

• More confident and proactive management style

• Provoke team behaviour

• Improve partnerships on supply chain

Cons• Resistance from some people as they are exposed

• People with lack-of-time to do WePMS related tasks

2. Background


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A structured review was undertaken on the following software products

(vendors shown below)

•Cognos Ltd.•CorVu Plc.•PB Views Ltd.•SAP Ltd.•Lucidus IPM.•ProMeaSys.•Hyperion Solutions•Inphase Software•PeopleSoft•IPS-Sendero

•SAS Institute.•Ithink Analyst•Active Strategy•Comshare Software•Oracle Corporation Ltd.•QuantiSoft•Pilot Software Ltd.•Lotus Development Corp.•QPR Software

2. Background


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Results of review on commercial software

• The cost of most software products are extremely high ranging from £ 30k + Development + Consulting + Training costs.

• Even though most of the software are able to adopt different frameworks, they are build based on Balanced Scorecard.

• Most of the software are not good at controlling processes using statistical approach, which is required for organisations pursuing Six Sigma and similar techniques

2. Background


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General Architecture of WePMS

2. Background

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WePMS implementation issues

Two sets of forces exist within a social system Lewin’s (1947) Force Field

Analysis

DriversBlockers

•Lack of IT support

•Parent company initiatives

•Time and effort required

•Resistance

•Drive from senior management

•Perceived benefits

2. Background


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WePMS implementation issues

• Contingent Approaches- Burns and Stalker (1961) - Dunphy and Stace (1990)

• Contextualist Approaches - Child et al (1987) - Pettigrew (1990)

However, Mintzberg (1987) and Orlikowski (1996) criticized the above approaches for neglecting the distinction between deliberate and emergent changes required during implementation

2. Background


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Research Methodology• The emergent change can only be realized in action and

hence Action Research is chosen as the main methodology for implementing WePMS in four out of six cases. – Label Co Ltd., Edinburgh.– Distillers Ltd., Kilmalid.– Warehousing, Paisley.– Education Centre, Glasgow.

• However due to the lack of resources in the two out of six cases, Case Study approach was chosen as the main methodology.– Mineral Water Company Ltd., Perthshire. – Aircraft Engines Ltd, Ayrshire.

3. Methodology


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Effect of WePMS on Business and Management (Concept Level)

WePMS Imlementation

IT Practices, such as data collection, data analysis, data

communication etc.

Performance Measurement Practices, such as frameworks,

performance indicators etc.

Employees using the system

Management Implications

Business Results

3. Methodology


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Effect of WePMS on Business and Management (Detailed Level)

Up-to-date and accurate informationOpen communication of information

Identification of business trendsComparing situation against targetsAccess to suppliers and customersEmployers are using information

Employers acting as teamsEmployees are not resistant

Less time is spent on data analysisEmployers are knowledgeable

Employers using in routine businessUsing results oriented approach

Empowerment Employees are more relaxed

IdentifyStrengths & Weaknesses

Promote partnership

Proactive decision making

Continuous improvement

Dissemination of knowledge

Benchmarking

Improve behaviour & attitude

Enablers Effects & Results

3. Methodology


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Architecture of WePMS implemented at Label Co Ltd.

Shuttle Worth System

SBDS

MS Acces

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SPC Software

Web Pages

4. Implementation


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Effects: WePMS Implementation

4. Implementation


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Architecture of WePMS implemented at Distillers Ltd.

Data3

AS 400

Lotus Notes Cognos

Approach Database

MS Acces

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SPC Software

Web Pages

4. Implementation


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4. Implementation


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Architecture of WePMS implemented at Mineral Water Co Ltd.

MS Access

Manual Input

Cognos Reporting

ToolWeb

Pages

4. Implementation


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4. Implementation


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Cross-Case Analysis• Resistance was observed initially in three cases, however it was

overcome with the senior management commitment• In all four cases it has enormously decreased the time and effort

required for data collection, analysis and communication• In all four cases information is made available on their Intranet• In three cases it provided up-to-date and accurate information, however

in the fourth case it did not provide accurate information• In three cases it is being used for identifying business trends• In three cases, managers are more confident and pro-active in their

decision-making. In the fourth case, managers are not confident about information

• In all four cases, it has initiated and enhanced team behaviour• In three cases it has increased empowerment at management level but in

two cases it increased empowerment at lower levels as well.• In only one case it promoted significant partnership with suppliers and

customers• In all four cases, it did not enhance bench marking against competitors

5. Cross Case Analysis


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Conclusion

Performance Measurement

Senior

Managem

ent

Comm

itment In

form

atio

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Techn

olog

y

6. Conclusion


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Any Questions ?


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