A Method for Key Performance Indicator Assessment in Manufacturing Organizations

Published

December 12, 2017

Author(s)

Patrick Hester, Barry Ezell, Andrew Collins, John A. Horst, Kaleen Lawsure

Abstract

Key Performance Indicators (KPIs) are an essential element of an organization's ability to monitor its strategic health, helping to ensure the strategic goals of the organization are achieved. However, KPI assessment and improvement is often an ad hoc and consultant-driven process rather than one undertaken using scientific principles. This paper outlines the development and subsequent deployment of a method for KPI assessment founded in scholarly literature and balancing practitioner concerns for ease of use. The proposed method draws heavily on organizational stakeholder involvement at varying levels throughout the KPI assessment process, improving current methods by introducing a mathematical foundation based on value-focused thinking. The proposed method allows stakeholders to evaluate the organization's KPIs in an effort to determine organizational performance against predetermined KPI thresholds. The method is demonstrated on a case study and suggestions for future research are offered.

Citation

International Journal of Operations Research

Volume

14

Pub Type

Journals

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Keywords

key performance indicators, assessment, performance management, performance measurement, decision analysis

Citation

Hester, P. , Ezell, B. , Collins, A. , Horst, J. and Lawsure, K. (2017), A Method for Key Performance Indicator Assessment in Manufacturing Organizations, International Journal of Operations Research, [online], https://tsapps.nist.gov/publication/get_pdf.cfm?pub_id=918303 (Accessed October 13, 2025)