Designing an Operations Performance Management System – A case-study of a leading global automotive parts supplier
This research focuses on a contemporary Operations Performance Management System (OPMS) designed for a leading global automotive parts supplier. It synthesises an integrated and holistic OPMS to increase the effectiveness and efficiency of the automotive parts supplier to ultimately improve financial margin. The study is motivated by the need of an process-oriented automotive parts supplier to excel in regards to its operations management to ultimately secure a best-in-class cost basis in times of significant changes in the automotive industry. The research design is based on a qualitative single case-study and deploys semistructured interviews with the management of the case-study organisation. In addition, hundreds of documents were analysed to evidence the creation of the OPMS. Finally, participant observation was used to allow for triangulation and contextualisation of findings. The findings reveal a contemporary OPMS. It presents an intelligent and integrated steering logic from corporate level to single operational processes. It integrates performance measurement and management in acknowledgement of the specific needs to the case-study organisation. The overall aim of this thesis is to make a practical contribution to this area as achieved by the presented OPMS. This study extends the existing literature by contributing a customised, highlyintegrated OPMS for a process-oriented automotive parts supply industry. It embeds the ‘Target Costing Methodology’ as an example for a performance management tool into the OPMS. Furthermore, the study explores the impact of digitalisation on OPMS. This research has synthesised an OPMS that emphasises a shift towards intelligent performance measurement for achieving value in the chain, in areas such as procurement and manufacturing. This shift is strongly influenced by digital transformation, which is not yet holistically commanded by the case-study organisation. The research does shed light upon how to optimise resource utilisation based on increased operational focus and managerial accountability. This approach will lead to continual organisational learning as part of the ‘Plan-Do-Check-Action’ management process.
Key Performance Indicator Driver Trees, Target costing, Digitalisation, Performance Management System (OPMS), Performance measurement, Automotive parts supply chain
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