centre for strategic manufacturing dmem sai s. nudurupati wepms: management implications web...
TRANSCRIPT
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Web enabled Performance Measurement System (WePMS): Management Implications
by
Sai S. Nudurupati3rd Year
ORS Funded Research
Dated 24 Jan 2003
University of Strathclyde, Glasgow.
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Agenda
1. Introduction
2. Background
3. Methodology
4. Implementation (three cases)
5. Cross Case Analysis
6. Conclusion
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Objective
“To design and implement Web enabled Performance Measurement System (WePMS) and assess its business
and management implications”
1. Introduction
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Centre for S
trategic
M
anufacturin
g
DMEMDMEMDMEMDMEM
2. Background
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
General Architecture of WePMS
2. Background
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEMWePMS: Management Implications Sai S. Nudurupati
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Architecture of WePMS implemented at Label Co Ltd.
Shuttle Worth System
SBDS
MS Acces
s
SPC Software
Web Pages
4. Implementation
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Effects: WePMS Implementation
4. Implementation
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Architecture of WePMS implemented at Distillers Ltd.
Data3
AS 400
Lotus Notes Cognos
Approach Database
MS Acces
s
SPC Software
Web Pages
4. Implementation
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Effects: WePMS Implementation
4. Implementation
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Architecture of WePMS implemented at Mineral Water Co Ltd.
MS Access
Manual Input
Cognos Reporting
ToolWeb
Pages
4. Implementation
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Effects: WePMS Implementation
4. Implementation
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
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
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Conclusion
Performance Measurement
Senior
Managem
ent
Comm
itment In
form
atio
n
Techn
olog
y
6. Conclusion
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Any Questions ?
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Sai S. Nudurupati WePMS: Management Implications
Cen
tre f
or
Str
ate
gic
Man
ufa
ctu
rin
g
DMEMDMEM
Cen
tre
for
Str
ateg
ic M
anuf
actu
ring
DMEMDMEMDMEMDMEM